Tuesday, October 3, 2023

Cryptocurrency: Pump and Dump?

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As cryptocurrency markets continue bull run it started gaining the attention of the new investors , and their use as an investment platform has been on the rise.  Many new investors are unaware of the prevalence of cryptocurrency pump and dump schemes. In the recent trend we have seen many cryptocurrency gaining 100% to 10000% over a short period of time. However right now all crypto coins are in Dip and falling down.

What is Pump and Dump?

A pump and dump scheme is a type of fraud in which the big whales manipulates the crypto price over a period, they inflate the price through a FUD which is a means of spreading misinformation result in a pumping, then release the assets at a higher price to rake in a high return on investment(dumping). However the pump and dump is not new to the market, it is already been through ups and down and will recover soon.

How to Detect pump and dump?

For a new investors its very important to noted down few points:-

  • Don’t be greedy, Invest that much amount which you can easily bear if market falls down.
  • Don’t be emotional while investing, As there might be a hype about few coins the truth is that it might go in a dip and you may loose your hard earn money.
  • Ensure you have studied about the the projects before investing.

As cryptocurrency trends to become popular, the pump and dump are likely to intensify. It is best to avoid the Crypto coin altogether unless you have done your research.

#bitcoin #cryptoindia #WAZIRXWARRIORS

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