Although cryptocurrencies aren’t as secure as cash, there are solutions to help you protect your money. Readers like you assist in funding MUO. We could receive an affiliate commission if you buy something after clicking on one of our website’s links. View More.
The rise in frauds that have followed cryptocurrency’s adoption has caused serious financial worries.
Financial security, the preservation of personal information, and the general legitimacy and expansion of the crypto ecosystem all depend on the ability to recognise and avoid these frauds. You may use a variety of methods and tools to protect your wallets from breaches and unauthorised access, including revoking and auditing with programmes like Revoke, Unicrypt, Ave, and Rugdoc.
Tools to Help You Spot and Avoid Cryptocurrency Scams
1- Revocable Smart Contracts with Revoke.cash
Token allowances from smart contracts may be revoked with the use of the utility Revoke.cash. You may authorise a smart contract to use a specific number of tokens from your wallet by giving it a token allowance. When dealing with a smart contract, such as via exchanging tokens or staking them on decentralised exchanges, token allowances are frequently required. Token allowances, however, might potentially pose a security threat.
Your token allowances might be used by hostile actors to drain your cash if they gain access to your wallet. Revoke.cash establishes a connection with your Ethereum wallet and searches through it for each token that you have given smart contracts permission to use. After that, you may check a list of all of your token allowances and cancel any that you no longer require.
You may improve the security of your funds and wallet by utilising Revoke. You can maintain wallet security while you navigate the multi-chain crypto environment since Revoke.cash is supported by various EVM chains, including Binance chain, Polygon, Polygon zkEVM, Arbitrum, Arbitrum Nova, Optimism, and zkSync Era. To prevent money loss, be selective about the contracts to which you allocate token allowances and make sure you often utilise Revoke.cash.
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2- The UNCX Network for Liquidity Status Checking
With the help of the decentralised UNCX Network, projects may lock their liquidity tokens, making it more difficult for them to steal investors’ money or rug-pull them. In the cryptocurrency market, liquidity is crucial. Liquidity will make it simpler to acquire and sell assets, which will cause price volatility and market instability.
By giving projects a mechanism to lock their liquidity tokens, UNCX Network contributes to the maintenance of market liquidity in the cryptocurrency space. Smart contracts are used by UNCX Network to lock liquidity tokens. As a result, the liquidity tokens are stored in a safe and open manner, and projects are unable to withdraw funds without investor approval.
Projects must deposit equal quantities of their token and a stablecoin like USDT or DAI to form a liquidity pool in order to lock liquidity tokens on the UNCX Network. The project must then implement a smart contract that locks the liquidity tokens in the pool in order to construct a liquidity locker.
Anyone may check the status of the lock on the liquidity tokens since the liquidity locker is open to the public. Because they must have authority of the liquidity pool and locker in order to withdraw the liquidity tokens, projects find it harder to rug pull as a result.
By examining a project’s liquidity status before investing, you may utilise UNCX Network to identify and stay away from scam enterprises. Since they are less likely to be frauds, investing in initiatives with locked liquidity is safer. Visit the UNCX Network website and input the project address to determine a project’s liquidity status. The website will then provide the project’s liquidity status and additional project-related data.
3- A token sniffer for auditing tokens
A free web tool called Token Sniffer may be used to spot fake tokens and con artists. By examining a token’s smart contract code and looking for any potential security flaws, Token Sniffer may spot counterfeit tokens and con artists. For investors and developers looking to safeguard their companies against fraud, Token Sniffer is a useful tool.
Token Sniffer employs a variety of methods, including as the examination of smart contract code, searches for well-known scams, searching for project-related red flags, etc., to spot fake tokens and frauds. By utilising Token Sniffer, you can guard against fraud, make wise investment choices, and help to secure the blockchain ecosystem.
Token Sniffer just need the contract address of the token you wish to audit. You will receive a report on the security of the token from Token Sniffer after it has examined the smart contract code. The report Cryptocurrency will include any warning signs that the token could be a fraud as well as any potential security flaws in the smart contract code.
4- Rugdoc Honeypot Token Checker
In a honeypot scam, the creators of the token construct a smart contract that restricts the ability of other token holders to sell their holdings and only permits withdrawals to certain addresses.
Investors can use the Rugdoc Honeypot Token Checker to safeguard themselves against honeypot fraud. The Rugdoc Honeypot Token Checker is user-friendly, precise, and often updated. Use the Rugdoc Honeypot Token Checker to look for indications of honeypot scams if you’re thinking about investing in a token.
The Rugdoc Honeypot Token Checker may be used to look for honeypot scams, look for evidence of scams on social media, and look at the price history of the token to look for indications of a pump and dump scheme on a number of chains, including BNB Chain, Polygon, Avalanche, and Fantom.
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5- Ave.ai for Token Analysis,
A decentralised on-chain data platform called Ave.ai collects on-chain data from more than 40 different blockchains. Users of Ave.ai may access a variety of tools for token analysis, such as K-line data for tokens, the Floor price of NFTs, statistical data for DeFi, GameFi, Web 3.0, tokenomics research, sentiment analysis of social media, and other aspects.
By examining k-line data to comprehend the token’s price history and volatility, you may utilise Ave.ai’s data to assess the authenticity and potential of tokens. Insight into token-specific data like liquidity and contract status may be gained through this. With Ave.ai, you can explore a project’s smart contract specifications in greater depth and look for any potential anomalies.
There Are Additional Methods to Protect Your Cryptocurrencies. Trading on trustworthy exchanges, keeping your cryptocurrencies in numerous cold wallets, using secure internet providers, enabling two-factor authentication, using different passwords, and making sure that both your internet and cryptocurrency browsers are secure are all ways to enhance the security of your cryptocurrencies.
