Lesson 5: Risks & Security in Web3

Understanding Risks in Web3

Web3 opens up new opportunities — but also brings new types of risks. From smart contract vulnerabilities to social engineering scams, it's crucial to stay aware and protect yourself.

Common Web3 Risks

• Smart Contract Bugs: Code flaws can be exploited by hackers.
• Rug Pulls: Developers abandon a project after collecting funds.
• Phishing: Fake websites or emails trick you into giving up access.
• Impersonation: Fake support accounts on Discord, Telegram, or Twitter.
• Fake Tokens: Scammers create tokens that look like legit ones.

Best Practices for Staying Safe

• Use hardware wallets (Ledger, Trezor) for long-term holdings.
• Double-check URLs and bookmark official sites.
• Never click unknown links or sign random transactions.
• Verify token contracts before buying on DEXs.
• Stay updated on news and threats in the Web3 space.

Congratulations! You've completed the Intermediate Level of Crypto World. Up next: Advanced topics like Tokenomics, Layer 2, and more!