Understanding Crypto Scams: A Beginner’s Guide

1. Why Scams Are Everywhere in Crypto

Cryptocurrency’s promise of wealth and freedom has a dark side: scams cost users $4.57 billion in 2024 alone (Chainalysis, 2025). The blockchain’s anonymity and irreversibility make it a scammer’s paradise—once your funds are gone, they’re gone for good.

2. Common Crypto Scams

Here’s what you’re up against:

• Phishing: Fake sites steal your wallet keys—57% of losses ($2.6B).
• Rug Pulls: DeFi projects vanish with $1.2B (CertiK, 2024).
• Impersonation: Fake influencers on X promise “free ETH” ($300M lost).
• Pump and Dump: Tokens hyped then crashed by insiders.
• Malware: Apps or contracts drain your wallet silently.

3. How Scammers Operate

They prey on trust and haste:

• Social Media: Fake giveaways or “support” DMs.
• Fake Tools: Bogus wallets or dApps.
• Urgency: “Act now or lose out!” tactics.

4. Staying Safe with BlockGuardian

BlockGuardian fights back:

• Check Everything: Use blockguardian.xyz to verify addresses and URLs.
• Extensions: Chrome/Firefox alerts flag scams instantly—install via email.
• Community Power: Report scams at our form.

5. Tips for Beginners

6. Next Steps

Dive deeper with our Phishing Guide or explore all guides at Learn. See our whitepaper for more.

7. Quiz