How to avoid Yield Farm Scams

In the crypto space, there is a lot of Yield farming scams out there. In this article I will talk about the types of yield farming scams and how to also avoid them.

First type of Yield Farm Scamming:

The first type is probably the most avoidable and obvious. It is where a site promises an unbelievable APY% for popular coins or tokens. The most popular of these scams is Bakery Swap YouTube videos where scammers attempt to bait you into linking your wallet to their site, where they will drain all your funds. 

To avoid this, first check if the APY% is reasonable for the certain token/coin. If it is, you should also check if the site is a credible source to stake in.

Second type of Yield Farm Scamming:

Unlike the first type, the second type of yield farm scamming is where the tokens in question are on a trustworthy site, but the token itself is not. This form of scamming can be a tricky to identify, but it can easily be avoided with proper precautions.

The first red flag is that the token in question offers a high APY%. This means that the token has a high amount of risk involved with it. You should also always do your own research about the staking program before staking that token. If the owners behind that token have a poor track record, it is best to avoid it.

Thanks for reading my article and have a nice day!