Crypto: Spotting Scams and Risk
Crypto safety includes keeping secrets, vetting services and understanding actions that are not easy to reverse.
Gifts that require sending funds first, support representatives who ask for a recovery phrase, and pressure to buy “before they fly” are warning signs. Sending to a wrong address can be irreversible. Even a currency called “stable” is not a guarantee of preserving value.
A message offers to send one coin and receive two. Do not send money to test whether the promise is real.
Explain in your own words the concept and one of its risks.
Ethereum.org · Security and Scams ↗Check your understanding
A support representative asks for your recovery phrase. What do you do?
- Give it to them
- Stop and do not share
- Send only half
Answer and explanation
Stop and do not share. Legitimate support does not need the secret that gives control of assets.
A transfer to the wrong address…
- Always cancels immediately
- Can be irreversible
- Becomes a gift from the bank
Answer and explanation
Can be irreversible. Do not assume there is a refund or cancel mechanism like in a traditional payment service.
Continue learning
Crypto: What Is Bitcoin? — A cryptographic asset is a digital asset that operates using cryptographic rules and a network of computers.
Blockchain, Wallet and Private Key — A blockchain is the ledger shared by the network, and a wallet is a tool to manage access and actions on the network.