Foundation Path
Stage 6 of 10
On This Page
1. The Reality of Crypto Security
2. Why Crypto is Targeted
3. Common Types of Crypto Attacks
4. Phishing Attacks
5. Wallet Drainers
6. Fake Tokens
7. Rug Pulls
8. Social Engineering
9. Red Flags You Must Recognize
10. How to Protect Yourself
11. Wallet Safety
12. Transaction Awareness
13. Smart Contract Awareness
14. The Golden Rule
15. Real-World Mindset Shift
Key Takeaways
• Crypto scams target users, not systems
• Phishing and wallet drainers are common
• Fake tokens and rug pulls are everywhere
• Security habits are essential
• If something feels wrong, don’t proceed
Lesson
6.3
Crypto Market Security
What You’ll Learn
• How scams in crypto actually work
• Common attack methods
• How to protect your wallet and funds
• How to think safely in Web3
The Reality of Crypto Security
Crypto is a high-opportunity space…but also a high-risk environment
👉 There is:
No customer support
No refunds
No chargebacks
👉 If you make a mistake:
Your funds are gone permanently
Why Crypto is Targeted
1. Money is Directly Accessible
Wallet = funds
2. Permissionless Systems
Anyone can create tokens or apps
3. Anonymity
Scammers are hard to trace
👉 Result:
You are your own security system
Common Types of Crypto Attacks
1. Phishing Attacks
Fake websites or messages that steal your wallet access
Examples:
Fake wallet login pages
Fake airdrops
Fake support messages
Goal:
Trick you into signing or revealing data
2. Wallet Drainers
Malicious smart contracts that steal funds
How it happens:
You connect wallet
You approve a transaction
Funds get drained
👉 Often disguised as:
NFT mint
Airdrop claim
3. Fake Tokens
Tokens created to trick users into buying
Signs:
No real utility
High hype
Fake volume
4. Rug Pulls
Developers abandon project and take funds
Common in:
New DeFi tokens
Meme coins
5. Social Engineering
Manipulating people instead of hacking systems
Examples:
Fake influencers
“Support team” scams
Urgency tactics
👉 Key idea:
Most attacks target YOU—not the blockchain
Red Flags You Must Recognize
❌ Urgency
“Act now or lose everything”
❌ Too Good to Be True
Guaranteed profits
Unrealistic rewards
❌ Unknown Links
Random DMs
Suspicious websites
❌ Requests for Sensitive Info
Seed phrase
Private keys
👉 Rule:
If it feels rushed or too good → it’s likely a scam
How to Protect Yourself
Basic Security Rules
Always:
Double-check URLs
Bookmark official sites
Verify sources
Never:
Share your seed phrase
Trust random messages
Click unknown links
Wallet Safety
Use:
MetaMask or similar wallets safely
Best practices:
Use a burner wallet for risky actions
Keep main wallet separate
Revoke permissions regularly
Transaction Awareness
Before signing anything:
Ask yourself:
What is this transaction doing?
Is this expected?
Do I trust this platform?
👉 If unsure:
Don’t sign
Smart Contract Awareness
Risks:
Hidden malicious functions
Unlimited approvals
Solution:
Limit approvals
Revoke access
The Golden Rule
Security in crypto is not optional—it’s required
Real-World Mindset Shift
Traditional Finance:
Institutions protect you
Crypto:
You protect yourself
👉 This is the trade-off:
Freedom vs responsibility
How This Connects to Your Journey
Research Analysts → detect scam projects
Market Analysts → avoid manipulation
DeFi Operators → safely interact with protocols
Next Step
👉 Continue to:
“Common Crypto Scams”
Optional Mission
👉 Practice this mindset:
Look at a random crypto project
Try to identify possible red flags
Final Thought
In crypto, being smart is good…but being careful keeps you alive.