Degen has started as a meme coin and now launched a chain which has emerged as a hotbed for meme coin trading, attracting enthusiasts and newcomers alike. However, the excitement of participating in the next big meme coin project comes with its risks, particularly the threat of scams. Let's quickly reminder how to be safe in web3.
1. Verify Links Before Engaging
In the Web3 ecosystem, the credibility of a link can be the thin line between secure trading and falling victim to a scam. Phishing attempts are rampant, with scammers crafting websites that mimic legitimate projects to steal your assets. Before connecting your wallet or signing any messages, take the following precautions:
- Double-Check URLs: Always verify the URL in your browser. Look for subtle misspellings or unusual characters that might indicate a fake site.
- Social Media Verification: Before engaging with any project, check its social media presence. If you follow some of industry leaders in farcaster or X, you can always check if any of them follows or not.
- Check the Other Platforms: Having a Dexscanner profile or having an open telegram are also good sign but always be cautious.
- Be Paranoid: You should always be careful with using new products.
2. Be Cautious with Token Approval
When swapping tokens on decentralized exchanges (DEXs), you'll encounter a step requiring you to approve the DEX's smart contract to spend tokens on your behalf. This step is crucial for the swap to occur, but it also presents a risk if not handled carefully:
- Limit Approval: Instead of granting permission to spend an unlimited amount of a specific token, only approve the amount you intend to swap. This minimizes your risk if the smart contract has vulnerabilities or if the DEX is compromised.
- Understand the Risks: A common scam involves tricking users into approving maximum token spend, allowing attackers to drain your wallet. Always review the approval amount and be wary of any requests for excessive permissions. Try to not make blind signing.
3.Verifying Smart Contracts
The backbone of any project in the DeFi space is its smart contract. However, not all smart contracts are created equal, and some are designed to scam:
- Look for Verification: Trusted platforms often have their smart contracts verified on explorers like degenscan. Verification means the contract's code is public, with the upcoming security tool integrations (like goplus security) you can also check if the token is scam or not.
-Check the first 50 transaction of the Coin: Check if first 50 tx has happened in the pool or via token transfers.
4. Consider Using a Burner Wallet
If you're experimenting with new projects frequently, minimizing your risk exposure is crucial:
- Use a Burner Wallet: A burner wallet is a separate wallet used solely for high-risk transactions or testing new projects. By keeping the majority of your assets in a primary wallet and only a small amount in the burner wallet, you reduce the potential impact of a scam.
- Delegate.cash: Allows you to link a burner wallet and control it from your main wallet.
Conclusion
The Degen chain, while offering immense opportunities for meme coin enthusiasts, also harbors risks that necessitate a cautious approach. By verifying links, being prudent with token approvals, ensuring smart contract authenticity, and considering the use of a burner wallet, you can safeguard your assets against the most common scams. Remember, in the fast-paced world of cryptocurrency, taking the time to secure your investments is not just wise—it's essential.
