Sirwin
Sirwin

Cryptocurrency pump and dump schemes: How to avoid being scammed


Cryptocurrency has become one of the most popular forms of investment in the last decade, with some of the most innovative and lucrative opportunities available in the market. However, as with all forms of investment, there are certain risks associated with cryptocurrency trading. One such risk is the "pump and dump" scam, these schemes are a popular method of taking advantage of unsuspecting and inexperienced investors, often leaving them worse off than when they started.

722a3d0c324f38a4992394beaa41dc8688a1d4d8262cc49d39547613781dc497.png

What is a pump and dump scam, in essence, a pump and dump scam, it is a form of market manipulation, the " pump" part of this scam involves inflating the price of a certain asset, usually through massive purchases or a large influx of investment. This causes the value of the asset to suddenly skyrocket and attract more and more buyers. The so-called "dumping" part of the scam consists of those responsible for the "pumping" selling their cryptoassets and making huge profits, the indiscriminate selling by these bad actors bring a crash in the price, investors try to cover the losses also by selling, the vast majority of the time at a loss and as a domino effect, the price of the asset devalues bottoming out.

The perpetrators of these scams are usually experienced traders, who employ a variety of tactics to entice people to buy their chosen coins. This may include using social networks, forums or other means to spread the "hype" of the coin. They may even use bots to increase the "buzz" around the coin they intend to inflate the price of. It is important to note that the perpetrators of these scams are often well versed in the cryptocurrency markets and have the ability to make quick profits.

ca43e20c5e09422b355cb88e0c85158013971c504f653fa71dec465a05802922.png

The best way to avoid being scammed in a pump and dump scheme, as I always posit, is to do your own research, by following a few simple steps you can ensure that unscrupulous operators will not take advantage of you. There are several resources available online to help you identify any potential schemes and how to spot them, in addition, it is important to invest in reputable cryptoassets and always be vigilant when making trades. You should also diversify your investments "don't put all your eggs in one basket" and thus reduce risk.


🛠💯💰  Tools, Platforms and Applications  💰💯🛠 

What is marked in brackets are the invitation or referral codes and in some cases they are necessary to receive the rewards or bonuses. All promotions have referral programs with which you can earn passive earnings without investment, however I recommend that you do your own research.

  • CoinInn (2x9ygk) - Bonus between $500 and $750, non-withdrawable, trading only, valid for 6 days, profits withdrawable to the portfolio of your choice.
  • StormGain  (BNS16466839) - Trading - Recommended for beginners, they can start without investment, capital is acquired with the Bitcoin Cloud Miner. The capital obtained in mining is not withdrawable, only to operate on the platform, profits withdrawable to the portfolio of your choice.
  • QuantFury (JRRU2593) - Trading - Bonus in cryptocurrencies or company stock worth up to $250.
  • KuCoin (rBPYVZS) - Trading - They offer different bonuses.
  • BingX (GHXOZE) - Trading - They offer different bonuses.
  • CoinEX (85eqt) - Trading - They offer different bonuses.
  • MoonXBT (z3v6ho) - Trading - They offer different bonuses.
  • BiBox (0FkIPQ) - Trading - They offer different bonuses.
  • PrimeXBT (526609) - Trading - They offer different bonuses.
  • BitYard (kZnnxp) - Trading - They offer different bonuses.
  • Furucombo (cft91oe77sps70fltak0) - Tool to integrate multiple applications of DeFi protocols into a single transaction.
  • Haasonline  (20206) - Trading bot software platform.
  • CoinMarketCap  (NELT6UUC) - Website for monitoring crypto asset prices with several very interesting sections (Indispensable tool for traders).  
  • TradingView - Charting platform and social network (Indispensable tool for traders).
  • ChangeNow - Wryptocurrency exchange platform.
  • Changelly - Wryptocurrency exchange platform.
  • TipMeACoffee  - Social network that rewards user contributions with TMAC.
  • NFTify - To create your own NFTs store, no investment, no codes.
  • Neosify - Is a crypto wallet that makes DeFi easy and accessible not to just technical enthusiasts, but to regular people.
  • Ledger (553b0c2d2056GHXOZE) - Hardware Wallet.
  • BixBox02 (9qhM1vbhe20FkIPQ) - Hardware Wallet.
  • Ellipal Titan (7114862.6897e230FkIPQ) - Hardware Wallet.
  • Keystone (7115442.43b3fc0FkIPQ) - Hardware Wallet.

"You will ask yourself: And if I take a risk and lose...? I will ask you: AND IF YOU RISK AND WIN? Success begins with thought, because sooner or later the man who wins is the one who believes he can do it. Do not be afraid of mistakes or failure, winners are not afraid of losing, losers are, in most cases the risk comes from not knowing what you are doing, so trust yourself, learn, be patient, manage your emotions and above all, enjoy the journey, what the wise man does at the beginning, the fool does at the end" - Anonymous.

REMEMBER THAT YOU ARE ALSO REWARDED FOR READING THE PUBLICATION, CLICK ON THE "☆ TIP" BUTTON AND RECEIVE YOUR REWARD.
ec947975cf680e51e451a0a413d289b0e006746c352a9d41324a54cd261305ea.png

Author's Note: The opinion expressed here is not investment advice, is provided for informational purposes only, and reflects the opinion of the author only. I do not promote, endorse or recommend any particular investment. Investments may not be right for everyone. Every investment in the market and every trade you make involves risk, so you should always do your own research before making any decision. I do not recommend investing money that you cannot afford to chair, as you could lose the entire amount invested.

“Everyone has their own forms of expression. I think we all have a lot to say, but finding ways to say it is more than half the battle" - Criss Jami.

"Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth" - Marcus Aurelius.

 

How do you rate this article?

32


CryptoEntrepreneurs
CryptoEntrepreneurs Verified Member

Trader, entrepreneur, freelancer, enthusiast and promoter of globalization, adoption and understanding of cryptocurrencies and new information and communication technologies (ICTs)


A bit of everything ...
A bit of everything ...

“Everyone has their own forms of expression. I think we all have a lot to say, but finding ways to say it is more than half the battle." Criss Jami (existentialist philosopher, poet, essayist, musician, singer, designer and lyricist). | "Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth". Marcus Aurelius (Roman Emperor).

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.