Spotting Scams & Rug Pulls
Common scam red flags and how to protect your assets in crypto.
Common Scam Types
(1) Rug pulls: teams attract funds then drain liquidity and vanish; (2) fake support/airdrops: trick you into connecting a wallet or revealing your seed phrase; (3) guaranteed high returns: "principal-protected high yield" and "can't lose" are almost always scams; (4) phishing sites: fake exchange domains stealing your login.
Red Flags to Watch
Watch for: anonymous teams with no audit and closed-source code; communities that only allow hype and ban questions; unlocked liquidity; supply concentrated in a few addresses; pressure to buy "now" or "limited time." Anything asking for your private key/seed phrase is 100% a scam.
Protecting Yourself
Always verify official domains (bookmark them; don't click ad links); keep large holdings in a hardware wallet; assess new projects with our Altcoin Health tool for liquidity and concentration; and remember: "if it sounds too good to be true, it is."
