Verifying a wallet before sending Funds in DeFi

Question

I&rsquo;ve been experimenting with some DeFi projects lately and am starting to get stressed about the risk around sending funds to the wrong wallet address or a malicious wallet address. With all of the scams happening I am curious about what practical steps people take to verify a wallet before sending funds.Do you have any tools or methods you use to check the history or good standing of a crypto wallet address? I am hoping to find something lighter than a forensic wallet wrecker that would be reliable to use. Interested to see how others process this.

curiousObject · Accepted Answer

Use a hardware wallet to protect you from malware on your own devices
Split your money into smaller amounts in separate addresses to protect yourself from a malevolent smart contract that drains all the funds in an address
Check the receiving address in a blockchain explorer. Does its past activity align with the purposes of the receiving address?
Send a smaller transaction first, and wait a a few minutes to see the results, if the fee is small enough to make that acceptable

jackrosh1 · Answer

I think this will be standard practice soon. Just like HTTPS became expected, wallet safety checks will too.

JaxonRyder121 · Answer

In DeFi, we trust contracts but not addresses. Maybe time to flip that logic.