Crypto can be a game-changer for making money and trying new things, but it’s also a playground for scammers. With no central authority, it’s easy for bad actors to trick people, and millions get lost every year to clever scams. This guide breaks down the most common crypto scams in plain language and shares simple, practical tips to stay safe.

What Scams Are Out There?

Scammers are sneaky, but their tricks often follow the same playbook. Knowing these patterns can help you spot trouble.

Phishing Scams: Fake Websites and Emails

Phishing is a big one. Scammers make fake websites, emails, or messages that look like they’re from real crypto platforms, like exchanges or wallets. They want your login info, two-factor authentication (2FA) codes, or—worst of all—your seed phrase (the secret words that unlock your wallet). You might get an email with a link to a fake login page or a message asking you to “verify” your wallet by typing in your seed phrase.

Warning Sign: Real companies never ask for your seed phrase.

Rug Pulls: Projects That Disappear

Rug pulls happen a lot in DeFi (decentralized finance) and NFT projects. Scammers create a new crypto token, hype it up on social media, and get people to invest. They pair the token with something popular like Ethereum on a decentralized exchange (DEX). Once enough money’s in, they pull out all the cash, leaving you with tokens worth nothing.

Warning Sign: Tons of hype but no clear plan or sketchy developers.

Impersonation Scams: Fake Celebs and Support

These scams play on trust. Scammers pretend to be famous people (like Elon Musk) or legit exchanges. You might see a post on X or YouTube saying, “Send me crypto, and I’ll send double back!” It’s a lie. Or someone claiming to be from your exchange’s support team might message you, saying there’s a problem with your account. They’ll ask for your login or try to get you to share your screen.

Warning Sign: Offers that sound too good or random “support” messages.

Pump-and-Dump: Fake Price Spikes

In a pump-and-dump, scammers pick a cheap, unknown coin and spread lies or hype to drive up its price. They often team up in group chats on Telegram or Discord, buy the coin cheap, then push it hard online. When new buyers jump in and the price spikes, the scammers sell everything, and the price crashes, leaving you with losses.

Warning Sign: Sudden price jumps with no real reason.

Fake Investments: Too-Good-to-Be-True Promises

These scams promise big profits, like “5% daily returns,” but they’re usually Ponzi schemes. They pay early investors with money from new ones, not from real profits. Fancy websites or dashboards might show fake earnings to hook you. When new money stops coming, the whole thing collapses, and your cash is gone.

Warning Sign: “Guaranteed” profits or crazy high returns.

Malware: Hidden Wallet Thieves

Malware is software that sneaks onto your computer or phone to steal your crypto. It might grab your private keys or swap out wallet addresses when you copy and paste. Some scams hide in fake NFT sites or apps, tricking you into signing a transaction that drains your wallet.

Warning Sign: Shady apps or sites asking you to sign weird transactions.

SIM Swapping: Stealing Your Phone Number

In a SIM swap, scammers convince your phone company to move your number to their SIM card. Since many crypto accounts use text messages for 2FA or password resets, they can take over your accounts. They start by digging up personal info to pretend they’re you.

Warning Sign: Your phone suddenly stops working or you get odd account alerts.

How to Stay Safe

Protecting your crypto isn’t hard if you stick to these simple habits.

1. Check Everything Twice
   Don’t click links in emails or messages. Type the website address yourself or use a bookmark. Look closely at website URLs, email addresses, or social media profiles for small differences, like extra letters. Only use official sites or verified accounts.
2. Keep Your Seed Phrase Secret
   Never share your seed phrase or private keys with anyone. Real companies don’t ask for them. Write your seed phrase on paper or a metal plate and store it somewhere safe, not on your phone or computer.
3. Use a Hardware Wallet
   For big crypto savings, get a hardware wallet like a Ledger or Trezor. It keeps your keys offline, away from hackers. Don’t leave lots of crypto on exchanges—they’re targets for attacks.
4. Use Better 2FA
   Skip text-message 2FA—it’s not safe because of SIM swaps. Use an app like Google Authenticator or Authy. For extra security, get a hardware key like a YubiKey if your platform allows it.
5. Do Your Research
   Before investing, dig into the project. Check the team, read their whitepaper, and look at their plans make sense. Watch out for anonymous developers, big promises, or no proof of audits. Check trusted sites like CoinMarketCap or CoinGecko for info.
6. Don’t Fall for “Easy Money”
   If someone says you’ll make “guaranteed” profits or huge returns like “100x in a month,” walk away. Crypto’s risky, and nobody can promise sure wins.
7. Stick to Known Platforms
   Trade on big, trusted exchanges like Coinbase, Binance, or Kraken, or reliable DEXs like Uniswap. Be extra careful with new platforms—they might be scams in disguise.
8. Keep Learning
   Crypto changes fast, and so do scams. Follow news from trusted sources and learn about new tricks scammers use. Staying in the know keeps you one step ahead.

Key Takeaways

• Stay Sharp: Don’t trust random messages, urgent demands, or “guaranteed” deals.
• Take Control: Use a hardware wallet to keep your crypto safe.
• Guard Your Seed Phrase: Never share it, and store it offline.
• Lock It Down: Use app-based 2FA or hardware keys, not texts.
• Check First: Research every project before spending a dime.
• Learn from Others: Knowing how scams work helps you avoid them.