How to protect your assets from random airdrop tokens

For many types of blockchain projects, cryptocurrency airdrops, or the act of depositing cryptocurrency in public crypto wallets, are used for marketing, liquidity creation, and network bootstrapping. 

Since airdrop is an activity that is becoming more and more popular in the crypto world, many users have been careless and scammed by malicious projects. To avoid becoming a victim of these scams, let’s find out the 4 best ways to protect your assets from random airdrop tokens through this article.

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What is random tokens airdrop?

Just like the normal airdrop activities, scam airdrop will send you random tokens when you join an untrustful whitelist, or you leak your wallet address on the internet. Normal users tend to get excited and find ways to trade these tokens for profit. And that’s how they got scammed.

A random airdrop token story

On a beautiful day, you check your wallet as usual and discover you have new tokens worth thousands of dollars. By believing that you have received the airdrop after many times of hard work on whitelisting and retroactive airdrops, you immediately swap this token on a decentralized exchange. 

Unfortunately, you don't know where the airdrop token came from and you don’t remember if you've researched this project yet. And suddenly all the assets in your wallet were lost. 

That’s the moment you become a victim of random airdrop tokens.

How scammed airdrop works

There are 2 assumptions for the token airdrop scam operation:

• Firstly, when you swap the random token, you might activate a smart contract that transfers all your other coins to a specific wallet address of the scam coin you got, or you just give away your private key.
• Secondly, the scam operation might be in the exchange you need to use in order to trade the token. Usually, you have to access an unknown website, connect your wallet and trade your tokens.

4 best ways to protect your assets

Check the airdrop project

Firstly, you may want to make sure that the project that airdropped the token has reliable credentials. To check this, you can refer to the website, Twitter, founding team and community response in the project.

Not to swap/transfer the random tokens

The best way to preserve the assets in your wallet is to not touch strange tokens that are sent to you unless you already have enough information about them.

Use Hidden tokens feature on Coin98 Wallet

The hidden tokens feature on Coin98 Wallet helps you avoid making mistakes on random tokens that are sent to you, protect your assets and quickly prevent possible risks.

Download Coin98 Wallet latest version here.

Send random tokens to burn address

Finally, to permanently burn random tokens from your wallet, you can send these tokens to the burn address.

Most blockchains such as Binance Smart Chain, Ethereum, Polygon have a burn wallet address: 0x000000000000000000000000000000000000dEaD

Be sure to check carefully the burn address on the corresponding blockchain before burning.

Conclusion

The crypto market is still new and evolving, so along with new project discovery activities, you should also learn how to scam and know how to avoid it, to protect your crypto assets.

If you want to know further about how to protect your assets via Coin98 Wallet, please leave a comment below and join Coin98 Community for further discussions about Coin98 Wallet.