With any innovation comes risk, but those risks can be managed with the right precautions. Protecting yourself online is just as important in your crypto wallet as it is in your email inbox or your banking app.
According to the largest ever study of crypto holders in America, which my organization conducted, just 3% reported negative experiences with crypto, and of these, less than a third had experienced fraud or security breaches personally. That’s less than 1% total. Compare that to traditional banking scams, where 34% of U.S. adults have experienced in the last year, or online dating, where 40% of users have reported being targeted by scams.
The point is that scams happen in every corner of the internet. The good news? The habits that keep you safe in other online spaces also work in Web3.
Find the scams before they find you
Scams can happen to anyone, anywhere—no matter how smart or tech savvy you may be. By staying alert, you can avoid the hassle and heartache that comes with being swindled.
These are some of the most common tactics used by online scammers:
Pig butchering: Scammers build fake relationships online—posing as a friend, love interest, or mentor—before persuading you to invest in a “can’t miss” opportunity. Once the crypto or money is sent, the scammers vanish.
Pump and dump: A lesser-known token gets hyped up by influencers or group chats, driving up demand. The scam organizers then sell their holdings at the top—leaving latecomers holding the bag.
Fake giveaways: Look out for messages claiming you’ll receive free crypto if you send a little first. No legitimate organization or person asks you to pay in order to receive a giveaway.
Impersonation scams: Fraudsters pretend to be customer service reps, government agencies, or wallet providers to get you to send funds or hand over your login details.
Phishing attacks: These often come through fake emails or links on social media, asking you to log in or verify your wallet. The goal? Steal your private keys or seed phrases.
Stay safe with smart internet habits
Online safety isn’t about paranoia—it’s about preparation. Governments, companies, and organizations are working to improve consumer protections so that people can use crypto securely. And while those measures can make everyday use more secure, no system is completely foolproof.
But with these six simple practices, you can help protect your coins, your identity, and your peace of mind:
Never share your private key. Your public wallet address is safe to share (it’s like your email) but your private key or recovery phrase gives full access to your wallet (it’s like your password). Keep it secret, and store it securely offline.
Avoid clicking random links. Whether it’s a text, tweet, or email, always double-check the source before responding or clicking.
Be skeptical of urgency. Scammers rely on pressure tactics. If someone’s telling you to act fast or you’ll miss out, take a step back. Real opportunities don’t rush you.
Research before you invest. Don’t believe the hype or anonymous tips. Look up the project, the people behind it, and whether it’s widely recognized and reputable.
Trust your gut—and verify the details. Misspelled names, strange email addresses, or too-good-to-be-true offers are always red flags.
Beware of random texts or emails. “Hey I found your number in my contacts,” a random “How are you?” from an unknown number or, other out of the blue overtures should always be treated skeptically.
General rule of thumb: If it seems too good to be true, it’s probably a scam.
Take control of your digital destiny
Crypto gives people more control, more access, and more opportunity. But that means nothing without trust and safety.
You don’t have to be a tech wizard or finance pro to use crypto. You just need to be a little “crypto curious.” When you decide to dip your toe in, practice and a few smart habits—habits you hopefully already use—like double authentication (where your bank, for example, will text you a code).
So let’s build a safer digital future together. Not by avoiding what’s new, but by learning how to navigate it responsibly.
Stu Alderoty is president of the National Cryptocurrency Association.
