Crypto Wallet Security Audit Guide

One-line: A comprehensive checklist for auditing crypto wallet security, spotting scams, and protecting funds on-chain.

When to use

• You need to audit a wallet for security vulnerabilities
• You want to check for dangerous token approvals
• You need to verify a smart contract before interacting
• You want to protect against common DeFi scams

Instructions

Step 1: Check Token Approvals

Most wallet drains happen through forgotten approvals. Audit every allowance:

1. Visit revoke.cash or use DeFi Spy
2. Check all ERC-20 approvals on the wallet
3. Revoke any approval to unknown contracts
4. Revoke old approvals to known contracts (re-approve when needed)

Step 2: Verify Contract Source

Before interacting with any contract:

1. Check if source is verified on Basescan/Etherscan
2. Compare deployed bytecode with verified source
3. Check proxy patterns (EIP-1967, EIP-1822, UUPS)
4. Verify the implementation address matches expectations
5. Check for ownership renunciation or timelocks

Step 3: Spot Honeypots

Red flags in token contracts:

• Transfer function has hidden conditions
• Sell function disabled for certain addresses
• Max transaction amount artificially limited
• Owner can mint unlimited tokens
• Hidden tax that varies by address

Step 4: Check for Rug Pull Signs

• Liquidity not locked or burned
• Team tokens not vested
• Contract ownership not renounced
• Deployment address has history of rug pulls
• Social media accounts less than 30 days old

Step 5: Safe Interaction Checklist

Before any DeFi interaction:

• Contract verified on explorer
• No dangerous approvals pending
• Slippage set appropriately (not too high)
• Gas price reasonable (not manipulated)
• Transaction simulated first
• Amount double-checked

Tools Required

• Web access for block explorers
• Wallet with USDC on Base
• Knowledge of common EIP standards

Version

v1.0 - last updated 2026-08-20