Every week, new investors fall victim to fake tokens, phishing apps, and pump-and-dump schemes that wipe out portfolios in seconds—knowing how to identify fake cryptocurrencies is vital.
What red flags should you keep an eye out for? What do these scams look like? Are there tools to help you stay safe? We cover it all in this guide. We’ll break down the most common crypto scams, how to spot them fast, and the steps you can take to protect yourself.
We’ll also look at tools like secure wallets, antivirus software, and anti-phishing VPNs that can shield your assets before a scammer ever gets close. Whether you’re new to crypto or already deep in the game, this is your crypto safety checklist.
11 Red Flags to Quickly Identify Fake Cryptocurrencies
Fake cryptos come in all shapes and sizes, but most follow the same shady playbook. Below is a table outlining the biggest red flags to watch for when assessing any crypto project.
Keep in mind: not every project with one red flag is necessarily a scam, but if you’re seeing several? Run.
| ⚠️Guaranteed Profits | Any project promising you’ll “double your money” is lying or doesn’t understand crypto. Steer clear. |
| ⚠️Zero-Risk Promises | “Safe” and “risk-free” don’t exist in crypto. If a token claims otherwise, that’s a red flag. |
| ⚠️Fake Celebrity Endorsement | Scammers often use doctored images or hacked accounts of Elon Musk or other influencers to promote fake coins. |
| ⚠️Crypto Giveaways | “If you send us 1 $ETH, we’ll send you 2 $ETH back.” No legit project will ask for your crypto in exchange for more. |
| ⚠️Lacks Project Details | If there’s no whitepaper, no team bios, and no roadmap – just vibes and hype. Well, it’s likely fake. |
| ⚠️Fake Crypto Websites | Watch for domain misspellings, non-functional links, and broken language. These are usually copycat scam sites. |
| ⚠️Fake Crypto Apps | Some apps on unofficial marketplaces mimic real ones but are designed to steal your funds or data. |
| ⚠️Excessive Marketing | Too many paid ads, influencer shills, and hype without substance often signal a pump-and-dump scheme. |
| ⚠️Anonymous/Unverifiable Team | Not every founder needs to be public, but if there’s zero info or fake LinkedIn profiles, that’s a concern. |
| ⚠️No Smart Contract Audit | Legit tokens get third-party audits. If there’s no mention of a security check, your money’s at risk. |
| ⚠️Unclear Tokenomics | 50+% of tokens held by insiders? Massive early unlocks? That’s a setup for a rug pull. |
If you’re looking to learn how to know if a crypto is fake, these are the main signs to watch out for. But in many cases, scammers use a mix of tactics. We’ll explain how to spot these scams in real-world scenarios, and walk you through the tools and habits that can actually keep you safe.
6 Ways to Defend Yourself from Fake Coins and Projects
How do you protect yourself from fake cryptocurrencies? Start with skepticism.
If you treat every project like it’s guilty until proven otherwise, you’re already ahead of most retail investors. The good news is that learning how to check if crypto is legit doesn’t require expert-level blockchain knowledge – just a few solid tools and a healthy dose of caution.
Below are proven ways on how to identify fake coins to stay safe in a landscape full of fakes, forks, and frauds.
1️⃣ Use a Non-Custodial Wallet Like Best Wallet
Don’t give your keys, and by extension, your crypto, to someone else.
Best Wallet is one of the best non-custodial wallets; it’s a multi-chain crypto wallet designed to put you fully in control. Your private keys never leave your device:
- There’s no centralized risk
- No Know Your Customer (KYC) requirements, and
- No way for anyone (not even Best Wallet) to touch your funds.
Just secure, anonymous access to all your coins, including Bitcoin and Ethereum, through one streamlined app. But Best Wallet isn’t just about storage. It also offers a launchpad. Through the ‘Upcoming Tokens’ feature, you can access the best crypto presales directly in-app.
Here, you can buy new tokens before they launch on exchanges, with confidence, as the Best Wallet team has vetted them — they’ve been audited, have transparent tokenomics, etc.
You get live pricing, roadmap details, and secure transactions without relying on shady mirror sites or third-party links.
2️⃣ DYOR: Always Research Before You Buy
Never invest in a coin or project you haven’t vetted yourself. Start by answering the following questions:
- Is there a whitepaper or litepaper? This should explain the project’s purpose, technology, and token utility. If it’s missing or full of buzzwords, walk away.
- Is the team doxxed and verifiable? While this alone isn’t always a red flag, public profiles and real-world experience add credibility.
- Has the smart contract been audited? Reputable audits from firms like Coinsult or Solidproof help confirm there are no obvious vulnerabilities or backdoors. No audit = high risk.
- Are tokenomics transparent and fair? Look for logical supply distribution, clear vesting schedules, and no huge allocations to insiders. 50%+ held by one wallet is a red flag.
- Is the community active and organic? A real project has real discussion, not just bot spam or fake hype. Check Telegram, Discord, and X (Twitter) for engagement that looks human.
If you can’t confidently tick off at least 3–4 of these, be very cautious. Scammers bank on laziness.
3️⃣ Don’t Fall for FOMO or “Urgent” Calls to Buy
“Buy now before it 100x’s!” and “If you wait, you’ll miss out!” are the kinds of phrases thrown around a lot. These lines are emotional manipulation, and they work.
Take a breath. Step back. Any legit project will still be around tomorrow. Scams, on the other hand, rely on speed to steal your money and vanish.
4️⃣ Watch Out for Social Media Crypto Ads or Giveaways
Not every crypto ad is a scam, but many are designed to mislead. You’ll find endless Instagram posts, TikToks, or X threads hyping the “next Bitcoin” or promoting too-good-to-be-true giveaways. These might just be clickbait marketing – but scammers use the exact same tactics to drain wallets.
Fake projects often flood social media with deepfakes, paid influencers, and fabricated testimonials. They’ll impersonate celebrities, copy real company logos, or hack verified accounts to gain trust fast.
One of the most common traps? Giveaway scams. A classic version: “Send us 1 $ETH, and we’ll send you 2 $ETH back.” Always verify ads through official sources, not comments or DMs. And if it sounds like free money, it’s probably bait.
5️⃣ Stick to Official Platforms and Verified Links
Fake websites and wallets are everywhere, and some are incredibly convincing. Always double-check URLs before connecting your wallet or entering any personal info.
Scammers often register domains with tiny alterations like “trustwaillet.com” instead of “trustwallet.com,” or use hyphens and subdomains like “meta-mask.support-login.io.”
Scam sites can rank on Google or appear in paid ad slots. To be safe, always access project pages through trusted aggregators like CoinGecko or CoinMarketCap, where official URLs are verified and listed.
When downloading wallets or crypto-related apps, always use the Google Play Store or Apple App Store. Apps on these platforms are reviewed and scanned for malware, unlike third-party APK files or Telegram download links, which are often used to distribute fake wallet apps or credential stealers.
6️⃣ If it Sounds Too Good to Be True… It is
10,000% APY. “Guaranteed” returns. Get-rich-quick promises.
No real crypto project offers risk-free returns. If a pitch feels like a lottery ticket with a sure win, it’s probably a scam. Legitimate projects discuss utility, tech, partnerships, or use cases – not magical moonshots.
Can Encrypting Your Connection Help Against Fake Crypto Scams?
Yes, and it’s more important than most people realize. A fake crypto scam doesn’t always start with a bad token or a shady Telegram group. Sometimes, it starts with malware silently watching your screen, logging your keystrokes, or hijacking your clipboard when you copy a wallet address.
Other times, it’s a fake dApp that looks real until your wallet connects and your funds vanish. Once your identity or login credentials are exposed, scammers can take over everything from your exchange accounts to your wallets.
That’s where NordProtect comes in. It’s an all-in-one identity protection service designed to stop scams at the source. It scans the dark web 24/7 for leaked emails, passwords, or phone numbers and alerts you immediately if your data has been exposed.
For U.S. users, it also includes credit monitoring, criminal record alerts, and up to $1M in identity theft recovery coverage, making it a powerful shield against financial fraud.
While crypto wallets protect your funds, NordProtect protects you. It’s built by the same team behind NordVPN; it’s focused on stopping scams before they get anywhere near your assets.
Pair that with a reliable antivirus like ESET NOD32, and you’re covering the rest of your attack surface. It defends against keyloggers, trojans, clipboard hijackers, and fake wallet apps. It’s fast, lightweight, and uses real-time AI detection to catch threats before they activate. Not after.
Without these tools, a single phishing link, corrupted download, or malicious browser extension could be enough to compromise everything in your wallet. With them, you’re adding a strong perimeter of defense that filters out scams before they ever reach your wallet or screen.
Are Non-Custodial Wallets Good Against Crypto Scams?
Yes. Unlike custodial wallets, where a third party holds your private keys, non-custodial wallets put full control in your hands. There’s no centralized entity that can be hacked, mismanaged, or compromised, and no customer support agent who can be tricked into resetting your access.
Scammers often target custodial setups through phishing, fake customer support chats, or exchange impersonations. But with a non-custodial wallet, there’s nothing to “reset” or take over – only you hold the keys. That’s a huge barrier against common social engineering attacks.
If you’re serious about crypto security in 2025, go non-custodial. We recommend the Best Wallet app, a non-custodial wallet built for both beginners and pros. Here’s why:
- It never stores or exposes your private keys or seed phrases
- Doesn’t require KYC, and is audited by Certik
- It’s powered by Fireblocks MPC-CMP to keep your assets safe.
➡️Related Read — The Best Non-Custodial Wallets Reviewed
Other Types of Crypto Scams
We’ve already covered common red flags, but now let’s go deeper into the actual types of crypto scams you could come across: how they work, how to spot them, and what to avoid.
Phishing Scams
- What it does: Tricks you into clicking fake links that mimic wallets, exchanges, or Decentralized Apps to steal your login details or wallet keys.
- How to spot it: Unfamiliar domains, typos, unsolicited DMs, fake MetaMask popups, or ‘Connect Wallet’ buttons on shady sites.
- Our tip: Bookmark official sites. Don’t trust links in comments, Telegram chats, or on social media posts.
Pump and Dump Schemes
- What it does: Scammers hype a low-cap token, lure in buyers, then dump their holdings and crash the price.
- How to spot it: Sudden price spikes with no project updates, vague whitepapers, and influencers with zero accountability.
- Our tip: Check the liquidity is locked (so the developers can’t drain the pool) and that team wallets don’t hold too much of the supply before buying anything that’s “about to moon.”
Ponzi Schemes
- What it does: Pays early investors using the money from new investors. There’s no real product. Just a payout cycle.
- How to spot it: “Passive income,” fixed returns, and heavy referrals or affiliate structures.
- Our tip: No real crypto project guarantees returns. If that’s the selling point, it’s likely a Ponzi.
Cloud Mining Scams (Click to Expand⬇️)
- What it does: Offers mining contracts for Bitcoin or altcoins that never actually mine anything.
- How to spot it: No real hardware info, unverifiable data centers, or promises of daily profits for minimal investment.
- Our tip: Real mining requires energy, equipment, and capital. If it looks too easy, it’s fake.
Blackmail and Extortion Scams (Click to Expand⬇️)
- What it does: Sends emails or messages claiming to have compromising data on you, demanding crypto payments.
- How to spot it: Generic threats, fake screenshots, and urgent payment requests to a crypto wallet.
- Our tip: Never pay. These are mass spam campaigns – delete, report, and run a security scan.
Fake ICOs (Click to Expand⬇️)
- What it does: Promotes an ‘Initial Coin Offering’ for a non-existent or plagiarized project, collects funds, then vanishes.
- How to spot it: Copied whitepapers, fake team bios, no working product, and a heavy focus on countdown timers.
- Our tip: Verify audit reports and cross-reference team members online. No audit, no trust.
Rug Pulls (Click to Expand⬇️)
- What it does: Developers launch a token, collect liquidity, then drain the funds and shut everything down.
- How to spot it: Renounced contract claims with backdoor functions, massive insider token allocations, or no liquidity lock.
- Our tip: Use tools like TokenSniffer or DexTools to scan for known red flags in contracts and check if a coin is a rug pull.
If you’re still unsure how to identify fake cryptocurrency apps or wallets, always stick to verified sources and avoid downloading anything through unofficial links or sketchy ads.
You can also check California DFPI’s Crypto Scam Tracker or the FMA’s investment scam database for a running list of reported crypto scams. Both are updated regularly and are a solid reference you could use before you connect your wallet to anything new.
Takeaways: Identifying Fake Cryptocurrency is a Must in 2025
Crypto’s still the wild west, and if you’re not careful, you’ll fund someone else’s getaway. The best way to protect yourself? Assume everything’s a scam until proven otherwise.
Fake tokens often rely on hype, fake endorsements, or urgency to get you to act fast, and that’s exactly when mistakes happen. Don’t skip research. Don’t trust flashy websites. And never connect your wallet to anything you haven’t verified.
Using a non-custodial wallet like Best Wallet gives you full control over your assets, cutting out third-party risks. But tech alone isn’t enough. Scams can reach you through your browser, inbox, or even hacked social posts, so it’s worth adding a second layer of defense.
That’s where something like NordProtect comes in. It blocks scam websites, phishing links, and malware downloads before you even know they’re there. Think of it as security for everything outside your wallet.
Because, let’s face it, no matter how careful you are, you can’t dodge what you can’t see. In 2025, staying safe in crypto is about having the right habits and tools, plus a dose of skepticism.
FAQs
1. How can you tell if someone is a crypto scammer?
Look for urgency, vague promises, and unsolicited messages. Scammers often push guaranteed profits, ask for upfront crypto payments, or impersonate known figures. If someone refuses to answer direct questions, avoids transparency, or pressures you to act fast, it’s a red flag.
Always verify their identity and never trust anyone offering “risk-free” returns.
2. How to check if a token is real or fake?
Verify the token’s contract address on trusted platforms like CoinGecko or Etherscan. Check for a working website, whitepaper, and audit reports. Look at the team’s transparency, token distribution, and whether liquidity is locked.
If details are missing or it’s hard to trace the project’s origins, it’s likely fake.
3. How to spot a Bitcoin scammer?
Bitcoin scammers often promise high returns, impersonate influencers, or offer giveaways that require you to send $BTC first. They may use fake websites or social media profiles to look legitimate.
If someone asks for your private key, offers a “limited-time” deal, or pressures you to act fast, it’s a scam. Always verify sources and never send Bitcoin to strangers.
4. How to check if a crypto exchange is legit?
Start by verifying its regulatory status and checking for licenses in your country. Look for a clear company address, real team members, and independent security audits.
A legit exchange will have transparent fees, strong security features (like 2FA), and positive user reviews. If it lacks basic contact info or only operates through Telegram, it’s likely a scam.
5. How can you tell if a crypto wallet is legit?
Check if it’s listed on official app stores and has strong reviews. Legit wallets are open-source or independently audited, don’t ask for personal info or seed phrases upfront, and come from known developers.
Look for security features like 2FA and non-custodial architecture. If a wallet appears only on third-party sites or pushes you to connect to unknown dApps, avoid it.