NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Knowledge is Power: How To Stay Protected From Crypto Scams

NewsBTC
NewsBTC
3 years ago
3 mins read
riseup

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Crypto scams are increasingly prevalent as the surge in DeFi and NFT projects increases. From Discord server bots to imitation NFT projects on OpenSea, new ways of stealing cryptocurrencies through deceit continue to crop up. Most in the space are familiar with a typical rug pull scenario in which many invest in a new blockchain project, only for the project to later disappear and the owner to make off with all the investors’ funds. Others may have fallen victim to “pump and dump” schemes, in which wealthy holders of vast amounts of a cryptocurrency (a.k.a. “whales”) have been known to buy mountains of it cheap to drive up the price and increase its scarcity (thus creating FOMO), only then to sell it immediately, sending the price crashing down and then pocketing the profits.

Here are a few ways you can protect yourself from scams.

Watch Out For Community-Owned, Renounced Projects

One way to avoid suffering the classic rug pull scenario is for the contract owners to renounce their ownership over to the community. Although this prevents a single entity from making an exit with all of a project’s capital, renounced projects can also come with a catch. If there is an issue with the contract after launch, they will not be able to fix the issues and will have to re-initiate the project entirely.

Take Advantage of New Security Tools

Tech companies in the blockchain space have begun remedying some of these security issues. EverRise’s solution to rug pulls is its EverOwn platform, which maintains the ownership of a decentralized project’s contract instead of the owners themselves. So, if something needs to be altered, the owner can then reclaim ownership with the acceptance of the community. It may be harder to find projects using a tool such as this to decentralize themselves, but knowing if they are would bring additional peace of mind.

Many scams have taken place on the Binance Smart Chain (BSC), and a company called RiseUpV2 has developed a BSC token and a technology called “Rug Screener” to bring safety and security to the world of cryptocurrencies. Rug Screener provides investors with the information they need to know about a project to identify crypto scams. RiseUpV2 has collated research tools from various platforms to quickly provide potential investors with information on any smart contract such as contract details, who the creator of the contract is, the project’s liquidity and more. Rug Screener even has a scoring system that provides the user with a warning if it deems a project as unsafe.

Do Your Own Research

As with any type of investment, it is imperative to do in-depth research before making a final decision. In the world of crypto, a dedicated project channel, whether it is on Telegram or Discord, usually is a great place to start to gather information. In addition to the team members, other users contribute by reporting questionable activities and scams to admins. Twitter, crypto’s go-to social media platform, is also a great place to stay up to date with project developments and news. As the industry continues to grow, investors are able to gather information from traditional and crypto-focused media.

There is no doubt that investors in the DeFi space need to continue being vigilant and careful with their choices. It does bring hope, however, that more and more projects and communities are coming up with solutions to make the crypto industry a safer place.

 

 

 

 

Tweet123Share196ShareSend
NewsBTC
NewsBTC

NewsBTC

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

25 Million Funtokens Burned! – How Does The Community React?

In a decisive move that underscores its commitment to long-term deflationary economics, the FUNToken team announced the burn of 25...

NewsBTC 3 days ago

Crypto Wealth Platform Nexo Breaks Ground with DP World Tour Golf Sponsorship

Nexo announces strategic partnership with major professional golf tournament, DP World Tour.  The partnership marks the first time a digital...

News BTC 3 days ago

STurning the Tide: How APT Miners Provide XRP and DOGE Investors with Continuous Tokens

After enduring the wild ups and downs of XRP and DOGE, many crypto investors are done with the stress of...

News BTC 3 days ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

What FunToken movement towards a 500% spike says about the scarcity market psychology

News BTC 14 hours ago

With no more minting, $FUN can skyrocket 500% on fixed supply announcement

News BTC 1 day ago

Smart Contract Lock and CertiK Audit: The Driving Factors Behind $FUN’s Breakout

News BTC 2 days ago

Premium Sponsors

Press Releases

  • Cryptocurrency is the best way to get rich quickly, easily...

    2 hours ago
  • XRP Cryptocurrency × Dogecoin Mining: HASHJ launches...

    10 hours ago
  • Koja kriptovaluta ima veći potencijal za stvaranje milijunaša XRP ili Shiba Inu

    Koja kriptovaluta ima veći potencijal za stvaranje...

    14 hours ago
  • 3 altcoina koje vrijedi pratiti u prvom tjednu srpnja 2025

    14 hours ago
  • XRP Bulls Are Soaring — FINDMINING Rides the Wave to...

    20 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.