Detecting Crypto Scams: Common Tricks and How to Protect Yourself

The world of cryptocurrencies attracts many people: it offers freedom, technological innovation, and the potential for significant profits. But on the other side are the scammers, who exploit this very freedom and lack of regulation to deceive unsuspecting investors.

This article will help you navigate the most common crypto scams and show you how to avoid them.

Why is the crypto world especially risky?

One of the key features of crypto assets — decentralization — is both a blessing and a curse. There’s no central authority to help you if you make a mistake or fall victim to fraud. That’s why prevention is so critical.

• No bank to help you – if you send money to the wrong address, it’s gone for good.

• Global scammers – attacks can come from anywhere in the world, often from professionals.

• Many newcomers – lack of technical knowledge is common.

Tricks scammers use

1. Fake wallets and apps
They may look official at first glance, but their goal is to steal your wallet password or seed phrase. Some are even available in the App Store or Google Play.

2. Phishing
Emails or websites that look like your favorite crypto exchange. Once you log in, your credentials are in the hands of scammers.

3. Pump-and-dump groups
They artificially inflate the price of an obscure token, then sell off suddenly, leaving other investors with heavy losses.

4. “Rug pull” — the DeFi nightmare
A shiny new project appears, gains hype — then the developers vanish with the funds.

5. Fake giveaways and “Elon Musk” promos
If someone says, “Send 0.1 BTC and get 1 BTC back” — stop right there! It never works.

6. Manipulative scammers on social media
They pretend to help you, slowly gaining your trust. Skilled scammers can spend weeks building a “relationship” before striking.

Classic scams in new packaging

Ponzi and pyramid schemes
“Bring in your friends and earn passive income!” Sound familiar? These collapse when no new participants join.

Fake exchanges
A nice-looking website with “real” market data — but once you try to withdraw your money, they disappear.

Malicious bots and browser extensions
They don’t trade for you — they steal your data or transfer your funds.

Fake lenders
“Deposit your crypto for interest!” — then they vanish. High promised returns are a red flag.

Fictitious ICOs
Attractive websites with “team photos” — then nothing happens, and your money is gone.

How to protect yourself — tips that work

• Be suspicious: if it sounds too good to be true, it probably is.

• Never share your seed phrase — with anyone, ever.

• Use two-factor authentication (2FA) on every platform you can.

• Use a hardware wallet for large amounts — offline storage means greater safety.

• Always check URLs — even a single typo can cost you.

• Don’t trust “private messages” from strangers — most scams start this way.

Real-life examples to learn from

Bitconnect
1% daily returns? Doesn’t sound realistic, right? Yet Bitconnect operated for years before collapsing in 2018. Investors lost billions of dollars.

OneCoin
One of the biggest scams ever: they raised over $4 billion without even having a real blockchain. The founder vanished and has never been found.

Checklist before entering the crypto world

• Do you have an offline wallet?

• Do you use 2FA?

• Do you never share your seed phrase?

• Do you verify websites before logging in?

• Do you block suspicious messages?

• Do you avoid “get-rich-quick” offers?

Your money, your responsibility

The crypto world is full of opportunities — but only for those who know what they’re doing. Learn, ask questions, verify everything, and remember: the best protection is always you.