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Oxalus Insights

4 Crypto Wallet Tips To Avoid Token Scams

Product Nov 7 2022
Token Scam

Crypto scams and frauds claiming promise high returns on investment are also on the rise as a result of blockchain’s constant growth. Since the start of 2021, over $14 billion in crypto has been stolen by cryptocurrency crime scams according to a report by blockchain data firm Chainalysis. So, what exactly token scam is?

What Is A Scam Token?

A scam token is a cryptocurrency that has been created specifically with the intention of stealing your funds is called a scam token. You may know it through advertising, or messages on a social media platform. If you’ve been the victim of a scam project it’s possible that you won’t be able to get your funds refunded as blockchain transactions are anonymous and irrevocable.

4 Safety Tips To Avoid Scam Tokens

Here at Oxalus Wallet, one of our goals is to make exploring the blockchain world safe, easy, and efficient. Therefore, we strongly condemn such fraudulent activities that harm your funds. It’s not fun!

So we wrote this article to share some tips to help you avoid them. Here’s how to do it! 

Keep Your Seed Phrase Secure & Private

As you know, the importance of your seed phrase controls your entire wallet. You should never give this phrase to anyone. If someone knows your seed phrase, they would have grants control over everything inside your wallet.

Research Token Address & Project Early

One of the important things for you could stand fast is knowledge. You should always ask some questions:

  • Who are the backers of this project?
  • How many of the tokens exist and how many are already in circulation?
  • Where do you find the white paper or the community of the project.

Website, Social Media (Twitter/YouTube/ Tele/ Discord) are good ways to start, especially when you need a high level of information. You can find things like market cap, trading volume, price history, charts, and so on, on crypto-focused websites.

Don’t Integrate with Suspicious Token Address

One of the most common ways people make mistakes is when they are in a hurry and don’t pay close attention. Trying to move fast is a temptation in the crypto world because things can happen quickly, but doing so will increase the caught of phishing projects. 

We know that just “tap – tap – tap”, you could access any website or import any token you want in a second. For you, now take a moment to pause and check your surroundings. Are you actually on the right website? Is the token you are interacting with actually trustworthy? Answers the below questions and continue! 

We have good news! Oxalus Wallet helps you in this area by warning you if you import a token which reported to have been spammed by a large number of people in the world. 

Oxalus Wallet - Token scam alert

Beware Of Guarantees, Giveaways & Airdrops 

​​Another common way scammers steal your funds is by offering amazing deals or by making incredible-sounding promises. For example, scammers tell you that if you send money to an address, they’ll send back double. You can also get free assets sent or “dropped” into your wallet when you take part in some “Airdrop”. Later, some airdropped tokens may be frozen by their smart contract and have sophisticated trading instructions that which you will need the asset issuer’s help. 

Final Thoughts

Sending fraudulent links, giving away cryptocurrency or tokens, and inviting participation in “ghost” projects are common scams targeting crypto investors. The blockchain industry is more and more developed, and the more sophisticated scams are. Hopefully, through this article, you will equip yourself with more knowledge to avoid risks when joining cryptocurrencies.


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