DApps

A “DApp” is the commonly used abbreviation referring to decentralized apps. DApps are conceptually the same as apps or games you might use on your computer or phone. The key difference is that DApps are built on and powered by decentralized protocols such as Ethereum. You can use DApps to exchange tokens, buy and trade collectibles, make payments, and more. 

Tips to protect your Wallet 

  • Connect to and use DApps supported on our WalletLink. See the list of popular and reputable DApps supported on WalletLink.  
  • Only use legitimate DApps. Take time to look into whether the DApp maker has a good reputation. If you use a DApp that isn’t trustworthy or following security best practices like smart contract code audits, your information could be compromised due to bugs or other product weaknesses. The DApp you want to use should display that they’ve been reviewed or audited by one of the top security and smart contract auditing companies in this Box Mining article
  • Only send cryptocurrency to entities you trust. When you send cryptocurrency to a blockchain address, you must be certain of the legitimacy of any involved third-party services and merchants.

Keep in mind that cryptocurrency transactions are irreversible. If you send cryptocurrency to a third party, you cannot reverse or stop the payment. Furthermore, if you lose access to your recovery phrase, Coinbase cannot help recover it. It is very important that you keep your 12-word recovery phrase secure. We recommend storing it in a secure location or backing up your wallet.

Important: Malicious DApps can make false claims on their website that they were audited by a reputable auditing company, as well as claim that Coinbase is one of their partners. Always research the DApp to make sure they are legitimate. 

Links to third-party websites will open new browser windows. Except where noted, Coinbase accepts no responsibility for content on third-party websites.

Phishing

Phishing websites and DApps try to trick visitors into providing their signin credentials or other sensitive information to gain control of their accounts or wallet. These scammers use emails, SMS text messages, social media, and search-engine advertisements to make their sites appear legitimate. 

Tips to avoid phishing:

  • Check that you’re using the correct DApp website URL.  

  • Double-check that the DApp website is legitimate. Research the platform thoroughly to validate their services and authenticity

Giveaway scams

Scammers are using social media to carry out their giveaway scams. They post screenshots of forged messages from companies and executives promoting a giveaway with hyperlinks to fraudulent websites. Fake accounts will then respond to these posts making the scam appear legitimate. The fraudulent websites will then ask that you “verify” your address by sending cryptocurrency to the scam giveaway. 

  • Never send cryptocurrency to giveaways under the guise of address verification. 

  • Be skeptical of all giveaways and offers found on social media. Do not trust screenshots in reply messages as images can be forged and altered. 

  • Use a reputable search engine to do research on any entity soliciting you on social media. If the offer sounds too good to be true, it probably is

  • Check the giveaway URL to make sure it’s legitimate. 

Airdropped tokens

An airdrop is when free assets are sent or “dropped” into your Wallet by an asset issuer to draw awareness of a new cryptocurrency. We recommend you contact the asset issuer directly for guidance on how to move these assets. For example, some airdropped tokens may be frozen by their smart contract and have complex instructions for trading funds in which you will need the asset issuer’s help.

Please be extra cautious when receiving airdropped tokens that you’re not familiar with. For example, some scammers will use airdrops to get your personal information and attempt to take over your accounts. Remember that no legitimate airdrop campaign will ask for your 12-word recovery phrase

Note: An asset can start out as an ERC-20 token and then move on to its own blockchain which may or may not be supported by Wallet. Search the asset under Receive in your Wallet to see if it’s supported.