How to Avoid Scams in Crypto (And Stay Safe While Learning) - Part 6 of Crypto 101 with Fere AI
In crypto, most people do not lose money in trading as much as they lose it to scams.
Whether it is fake tokens, rug pulls, phishing links, or blind singature popups, these mistakes are easy to make if you are new to crypto.
But, you can easily avoid them if you follow a few simple rules.
The only rule that matters, though: you can check every token inside Fere AI before you ever hit buy.
This is the one thing in crypto everyone wishes they learnt first.
The Biggest Red Flags
Scams follow patterns and so are often predictable. Once you know those patterns, you spot them everywhere.
Let’s discuss the most common ones:
- Zero liquidity: If a token has zero or no liquidity, you might not be able to sell it even if the price looks high because there is no one looking to buy it in the market.
- High concentration: If a few wallets hold majority of the token supply, there is a high possibility that they might dump them at any moment.
- Fresh contracts with no history: New contracts that have zero track record are usually high risk. Many rug pulls usually come from freshly deployed tokens.
- Anonymous dev wallets funding the pool: If a singel unknown wallet is the source of initial liquidity for a token, you need to be extra careful.
- Suspicious volume spikes: Sudden volume that does not match sentiment, news or mentions it usually indicates towards wash trading or manipulation.
Ask Fere Pro: ”Do a Risk-Reward analysis on this token”
Wallet Safety Basics
Your wallet is not just your identity in crypto but it is also your vault. If it gets compromised, nothing else matters.
Few rules to always follow:
- NEVER share your seed phrase - No one legitimate will ever ask for it
- Avoid signing blind transactions - If you have no idea what you are signing, it is better to stay away from that transaction and not sign it.
- Use trusted wallets - It is advisable to stick to popular wallets with a security reputation.
- Verify every connection - If a website feels malicious, ask Fere Pro before connecting your wallet to it.
Ask Fere Pro:
“Is (this) site safe to connect my wallet to?”
Using Fere AI to check for Token Safety
Fere pro can help you understand if a token is safe to interact with before you take any risk.
You can use prompts like:
- Verified or not
“Is (this) the official contract for (this) token?”
- Liquidity and holders
“Show me the liquidity and top holders for this token”
- Contract creation and deployer checks
“When was this token contract deployed and by who”
- Scam detection basics
“Does this look like a scam token”
Fere pro turns blockchain data in simple English so you can make decisions with confidence.
Risk Management 101
Even when a token is safe, the trade itself carries risk. Good traders survive by managing it well.
Below are a few basics to keep in mind:
- Never trade with money you cannot afford losing
Crypto moves fast so you should treat your early trades like tuition.
- Position sizing
Whenever you are entering any trade, start small. Once you understand the token better, only then build size.
- Do not chase pumps
If something already up 200%, the easy money is gone.
- Have a plan before you buy
If you feel you are wrong, have a clear plan of where you will exit.
Ask Fere Pro:
“Help me create a simple risk plan if I want to buy (this token) right now”
Final Thoughts
Before you buy any token, ask the question that can save you thousands:
“Does (this) token look safe?”
Learn the red flags, protect your wallet, and always trade with a plan.
Do not forget to use Fere AI to guide you every step of the way.
Try it today ↓