A short guide to staying safe when spotting crypto scams.
Crypto has created powerful new tools for storing and moving value, but it has also attracted scammers who try to take advantage of newcomers and experienced users alike. Learning how to spot common scams is one of the most valuable skills you can develop. It protects not only your wallet, but also your confidence in using Web3.
This guide covers frequent scam patterns, red flags to watch for, and simple habits that significantly reduce your risk.
One of the most widespread scams is phishing. Attackers create fake versions of wallet sites, exchanges, or Web3 apps and then trick people into entering their seed phrase or connecting their wallet. These scams often spread through search ads, social media, or direct messages.
To protect yourself, bookmark official URLs and use those bookmarks instead of searching each time. Always check the domain name carefully. Legitimate services will never ask you to type your seed phrase into a website. If you see a prompt like that, close the page immediately.
Another common tactic is impersonating support staff or well-known community members. Scammers might reach out after you post a question publicly and offer to “help” you fix an issue by asking for remote access, private keys, or seed phrases.
Authentic support channels will not contact you out of the blue asking for sensitive information. If someone offers unexpected help, verify their identity through official channels or ignore the message.
Scammers also use links embedded in fake airdrops, random tokens, or direct messages. Clicking these links can lead to sites that attempt to trick your wallet into signing harmful transactions or granting broad permissions.
Be wary of unsolicited tokens showing up in your wallet. Do not rush to interact with them on unknown sites. Research the token and the project first, and when in doubt, ignore it.
Some scams involve launching a token or DeFi project that looks legitimate at first, then removing liquidity or abandoning the project once enough people have invested. These “rug pulls” can be hard to spot, but certain warning signs appear frequently:
Before committing meaningful funds, take time to research who is behind a project, how it is structured, and how long it has been operating.
Fake giveaways are another evergreen scam. They often promise to send you double the amount of crypto if you send a small amount first. In reality, any funds you send are lost. These scams may use stolen images or impersonated accounts to seem more credible.
The rule here is simple. Legitimate projects do not ask you to send them funds in order to receive a reward. If a giveaway requires an upfront payment, treat it as a red flag.
A few consistent habits will protect you from most wallet-related scams:
Self-custody gives you control, but it also means only you can prevent unauthorised access. Treat your wallet like a set of keys to your home, not like a casual login.
The goal is not to be paranoid. It is to build a routine where basic checks become automatic. Over time, you will recognise patterns and spot suspicious offers more quickly. If something feels off, slow down and verify details through trusted sources.
Scams will continue to evolve, but the core defences remain the same. Protect your seed phrase, question unsolicited offers, verify URLs, and be careful with approvals. By combining these habits with self-custody and direct-to-wallet buying, you can enjoy the benefits of crypto while keeping your risk under control.
Each wallet has its own interface and small quirks, but the underlying principles stay the same. Once you understand how to back up your seed phrase, confirm the right network, and check addresses carefully, you can move between different wallets with much more confidence.
Elbaite makes it simple to buy crypto directly to your wallet without holding funds on an exchange.
This direct-to-wallet flow gives you full control from the moment you buy.
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Elbaite Pty Ltd (“Elbaite”) is incorporated in Australia and registered with the U.S. Financial Crimes Enforcement Network (FinCEN) as a Money Services Business. We will never ask for the private keys to your personal digital currency wallet. Elbaite is not liable for any losses you may incur, and you are solely responsible for your investment decisions. Before deciding if our services are right for you, take into consideration your own financial situation & needs and/or obtain professional financial or taxation advice from a licensed provider. Elbaite does not provide financial advice and Elbaite does not have any affiliation with external traders, advisors or trading platforms. Please note: Be cautious of phishing sites and always verify that you're on the official Elbaite.com website before entering any sensitive information.
