Before you buy a new token: a safety checklist
New tokens are where rug pulls, honeypots and pump-and-dumps live.
Before buying a new token, confirm the contract address from the project's official source, see who's behind it, check on a block explorer how concentrated the holders are and whether liquidity is locked, look for contract powers like minting or blocking sales, and ask why you're hearing about it now. Only put in money you could lose completely.
Legitimate support will never ask for your seed phrase (recovery phrase) or private key. Not an exchange, a wallet maker, a lawyer, the police or the FBI. Anyone who asks for it, or asks you to type it into a website, is trying to steal from you.
The checklist
Tick each step as you go. Use the print button for a paper copy to keep by your computer.
All 11 checked. If anything along the way felt wrong, trust that feeling and wait.
Your ticks are saved only in this browser, so you can come back to them. Nothing is sent anywhere.
Why these checks matter
Most new tokens are speculative, and many are designed to transfer money from late buyers to insiders. In October 2024 the Justice Department charged 18 people and firms for faking volume in small tokens, after the FBI created its own token to catch them. These checks won't make a risky token safe, but they catch the most common traps. For a deeper method, read how to research a cryptocurrency.
Frequently asked questions
How do I find a token's real contract address?
From the project's official website or verified social accounts, and cross-check with a major data site such as CoinGecko. Never from a DM or a reply.
What is a honeypot token?
A token whose contract lets people buy but stops them from selling, so only the creator can cash out.
Where to next
Sources
- Customer Advisory: Beware virtual currency pump-and-dump schemes (CFTC)
- What to know about cryptocurrency and scams (FTC)
Written for beginners and checked against the sources listed. Last reviewed November 5, 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.