Crypto Scams: The Top 5 Red Flags
Crypto can be exciting — but it also attracts scammers faster than a meme coin launch.
The good news? Most scams share the same warning signs. If you know what to look for, you can spot trouble before it empties your wallet.
1. “Guaranteed” Returns
If someone promises you guaranteed profits — run.
Crypto is volatile. No one can honestly promise steady, risk-free returns, and anyone who does is either lying or selling a Ponzi scheme.
Red flag phrases:
“You can’t lose money!”
“Double your investment in 24 hours”
“Risk-free passive income”
2. Fake Giveaways & Airdrops
You’ll see these on social media: “Send us 1 ETH and we’ll send you 2 ETH back!”
Real projects never ask you to send crypto to “verify” your wallet or “unlock” a bonus.
How to check:
Look for the official website or verified account
Remember: If it sounds too good to be true, it’s a scam
3. Phishing Websites & Fake Apps
Scammers create sites and apps that look exactly like popular exchanges or wallets.
When you log in, they steal your info.
How to avoid:
Bookmark official URLs
Never click random links from email, DMs, or ads
Double-check the URL for typos (like “coinbsae” instead of “coinbase”)
4. Impostor “Support” Accounts
If you post about a problem on social media, fake “support reps” might DM you offering help.
They’ll ask for your recovery phrase or try to get you to install remote-access software.
Reminder:
Legit support will never ask for your private keys or seed phrase — ever.
5. Pump-and-Dump Groups
These groups hype up a small coin to drive the price up (“pump”), then sell all their holdings (“dump”), leaving late buyers holding the bag.
Signs it’s a pump-and-dump:
Aggressive “Buy now before it’s too late!” messages
No real project details, just hype
The price chart looks like a steep mountain
Bonus: Rug Pulls
In DeFi projects, a rug pull happens when developers drain all the liquidity and disappear.
Before investing, check if the project’s liquidity is locked and if the team is transparent.
How to Stay Safe
Enable 2FA (authenticator app) on all exchange accounts
Never share your recovery phrase
Send a $5 test transaction before sending large amounts
DYOR (Do Your Own Research) before investing
Bottom Line
Crypto has massive potential — but you have to play defense.
Stay skeptical, protect your keys, and remember: if it smells like a scam, it probably is.