The decentralized exchange that Uniswap offers is a popular war to transact. Ethereum is its primary crypto, and you can swap it with ERC-20 tokens with liquidity pools. Investors can earn returns through depositing tokens. But as with any DeFi environment, it’s also where scammers linger. To make sure that your investment is secure, here’s how you can identify scams to ensure that your transactions are secure.
1. Verify Using Trusted Sources
Cryptocurrency investors enjoy the benefits of platforms similar to Swyftx where cryptos are listed, such as Uniswap, because of their decentralized nature. Here, they can find free listings of tokens that make it affordable and cost-effective to start new projects that centralized systems can’t provide. But the problem is that scammers are at their heels. They find a newly listed legitimate token and create a listing above the legitimate one.
You can verify that the listing you want is genuine by heading to your trusted resources, such as websites that track cryptocurrencies. For example, if you head to that trusted website, search for the token and select it. Then look for the trading pairs at the bottom of the page. Look for Uniswap and click on the pair next to it. You’ll be directed to the actual Uniswap page, and you’ll be able to avoid illegitimate tokens.
2. Beware Of Liquidity Pulls
Also known as rug-pulls, liquidity pulls are known scams where those who buy newly listed cryptocurrency have their Ethereum disappear. You might’ve been using the best strategies to earn Uniswap, but if you fall into this scam, there’s no going back. The investors will then have no way of selling the token they bought and no way of getting their money back. These victims become stuck with coins they can’t use or return and have zero chance of refunds. Investors take a risk when they buy the newest listed coin out in the market.
If the coins marketing slogan is using it as a selling point and you’re considering it, it’s best to avoid it and search for legitimate coins instead. Projects that have actual value never use liquidity pulls as a selling point. Many scammers are willing to make false promises, and blind people only use these stunts for their money if the project lacks tangible benefits, is overcompensated and focused, and doesn’t believe these claims.
Stay Away From Random Airdropped Tokens
Why are there many scammers today? Because some of the methods aren’t at all that hard for them. Some will design and release a malicious smart contract or create a copy of the open-source front end. The infected tokens are then sent to potential victims. The infected tokens will show up on a blockchain explorer with a dollar value. A page will then appear that requires victims to connect their wallets. It’ll also need them to sign the transaction that will seemingly allow them to claim free crypto.
An intelligent investor would know not to sign anything unless they have done thorough research and background checking. You can treat all free airdropped cryptocurrency as a scam, especially when you’re on a large platform. When victims receive tokens from a blockchain or a metaverse, they must check the official blog of the project as well as the social media accounts if they’ve made posts about an airdrop. If no announcements are made about a giveaway, treat it as a suspicious activity.
Remember that these malicious tokens can only wreak havoc if you interact with them. Phishing attack victims can’t do much once it’s too late. Those who are yet to touch their free airdrop should do nothing with them as they are used for phishing attacks.
3. Analyze Contract Address
You can use an Ethereum blockchain explorer to check and look into critical analytics to help you make informed decisions. To find if a project has validity or none, this blockchain explorer can help confirm red flags. It’s essential to verify the contract address and examine the volume, recent transactions, and liquidity to see if there are any anomalies. You have 24 hours for volumes and over 24 hours for transactions. You can also see when the liquidity was deleted or added on the same day. It’ll feature the most recent transaction that was made 99 days ago with a specific amount of ETH removed, which would be pretty suspicious.
Uniswap is only one of the many cryptocurrencies on large platforms where you can encounter scammers who know various ways to get your crypto. To avoid these scams, you must know your enemy and their methods. Sometimes, ignoring free airdrops can help you avoid potential problems shortly. Knowing the types of scams, they use will let you keep your crypto safe.