On-Chain Analysis
Common Crypto Scams
Use public blockchain data to research and stay safe.
In this lesson
- How common scams work
- Red flags to watch for
Key takeaways
- 1A rug pull drains liquidity and abandons a project
- 2Guaranteed returns and urgency are warning signs
- 3Audited, open code and public teams reduce risk
Lesson summary
Crypto scams exploit urgency, complexity, and irreversible transactions.
Mental model
Common Crypto Scams in plain terms
Crypto scams exploit urgency, complexity, and irreversible transactions. The goal is usually to get users to sign, deposit, or buy before they slow down.
- How common scams work
- Red flags to watch for
Mechanics
How to reason about common crypto scams
Phishing sites imitate real apps and wallet prompts.
Rug pulls drain liquidity or abandon a token after attracting buyers.
Approval drainers abuse token permissions to move assets later.
- A rug pull drains liquidity and abandons a project
- Guaranteed returns and urgency are warning signs
- Audited, open code and public teams reduce risk
Example
Common Crypto Scams, applied
A fake airdrop page may ask a user to connect a wallet and sign an approval that lets the attacker transfer tokens without another prompt.
Common mistakes
Common mistakes with common crypto scams
A professional website, blue check, or active Telegram group does not prove legitimacy.
Risk notes
Before you rely on common crypto scams
Once a malicious transaction is confirmed, recovery is unlikely unless a centralized party can intervene.
- Verify URLs and contracts.
- Avoid unlimited approvals.
- Pause when promised returns sound guaranteed.
Practice
Put common crypto scams to work
- Verify URLs and contracts.
- Avoid unlimited approvals.
- Pause when promised returns sound guaranteed.
Review
Key terms
- Airdrop
- A distribution of free tokens to wallets, often to reward early users or bootstrap a community.
- Blockchain
- A shared, append-only ledger replicated across many computers, secured by cryptography and consensus.
- Liquidity
- How easily an asset can be bought or sold without moving its price much.
- Phishing
- A scam that tricks you into revealing keys or approving malicious transactions via fake sites/messages.
- Rug Pull
- A scam where a team drains liquidity or abandons a project, leaving holders with worthless tokens.
Source notes
Editorial references
These references are starting points for verifying the mechanisms, risk checks, and product context behind this lesson.
Before you continue
Can you do these?
- Verify URLs and contracts.
- Avoid unlimited approvals.
- Pause when promised returns sound guaranteed.
Related learning
Keep reading
Checkpoint
Finish this lesson
Pass the check to save progress, then continue through the track in order.
Lock in this lesson
Answer every question correctly to complete the lesson.
A rug pull is when…