Scams and safety

How people lose money in crypto and how to recognize the patterns.

10 guides, in reading order

Is cryptocurrency safe?The technology behind major cryptocurrencies has proved hard to break. Most losses come from price falls, failed platforms, mistakes and scams.2 min read
The most common crypto scamsMost crypto scams follow a few patterns, such as fake investments, impersonators and bogus giveaways. All end with a payment that cannot be reversed.2 min read
What is a rug pull?A rug pull is when the people behind a crypto token or project take investors' money and abandon it, leaving the token close to worthless.2 min read
What is a pump and dump in crypto?A pump and dump is a scheme in which insiders hype a thinly traded token to drive up its price, then sell to the buyers they attracted.2 min read
Crypto phishing and wallet drainersCrypto phishing tricks people into giving up a seed phrase or approving a harmful transaction. A wallet drainer is the code that then empties the wallet.2 min read
What is a pig-butchering scam?A pig-butchering scam is a long con in which a stranger builds trust over weeks, then steers the victim into a fake crypto investment platform.2 min read
What happened to FTX?FTX, once among the largest crypto exchanges, collapsed in November 2022 after customer money was secretly moved to its sister trading firm.2 min read
Is crypto insured? FDIC, SIPC and what they do not coverNo. FDIC insurance covers bank deposits and SIPC covers securities at failed brokerages. Neither protects crypto held at an exchange or in a wallet.2 min read
What should you do if you are scammed in crypto?Stop sending money, save the evidence, tell the exchange or ATM operator and report it to the authorities. Recovery is hard, and speed matters.2 min read
How does crypto get hacked?Most crypto hacks hit what is built around blockchains, such as exchanges, bridges, smart contracts and private keys, and not the blockchains themselves.2 min read