Rug Pulls: How to Identify and Avoid Scams in DeFi

Security is the most critical aspect when dealing with cryptocurrencies. This guide addresses rug pulls: how to identify and avoid scams in DeFi.

Why Security is Crucial

Common Risks

• Hacks: Attacks on exchanges and wallets
• Phishing: Social engineering scams
• Malware: Malicious software
• Lost Keys: Permanent loss of access

Main Threats

Attack Vectors

1. Phishing Attacks: Fake emails and websites
2. Malware: Keyloggers and trojans
3. SIM Swapping: Phone number theft
4. Social Engineering: Psychological manipulation

Protection Measures

Multi-Layer Security

⚠️ Important: Never share your private keys or seed phrases with anyone.

• 2FA Authentication: Always enabled
• Strong Passwords: Use a password manager
• Hardware Wallets: For large amounts
• Verification: Always check addresses

Best Practices

Security Checklist

• Use two-factor authentication
• Keep software up-to-date
• Verify URLs carefully
• Back up seed phrases
• Use different wallets for different purposes

Security Tools

Recommendations

• Hardware Wallets: Ledger, Trezor
• Password Managers: 1Password, Bitwarden
• Authenticators: Google Authenticator, Authy
• VPN: NordVPN, ExpressVPN

What to Do in Case of Compromise

Immediate Action

1. Move funds to a secure wallet
2. Revoke contract approvals
3. Change all passwords
4. Notify exchanges
5. Document the incident

Conclusion

Security in crypto is individual responsibility. Implement these practices to protect your digital assets.

Start Investing in Cryptocurrencies

To buy the cryptocurrencies mentioned in this article, use one of the recommended exchanges: