Pump and dump systems: How to avoid rect Cristocurlency Picke
Over the years, the world of cryptocurrency has been characterized by numerous pumps and dump systems. These frauds focus on unsuspecting investors and promise an unusually high return on their investments just before they will lead them to huge losses for those who are accepted. In this article, we are involved in the risk of pumps and discharge systems and advises to avoid the victim.
What is the pump and dump system?
The pump and landfill system is a form of financial fraud in which an individual group of individuals artificially increases the price of cryptocurrencies or stock, using coordinated efforts to purchase large quantities, creating false demand. When the price reached its climax, they sell their shares as an inflated value, leaving significant losses to other investors.
How to identify the pump and discharge schema
To avoid rect, it is important to be aware of the warning signs of the pump and the dump scheme:
1
Unusually high yield
: Be careful if the investment option promises an unusually high return, little or not.
- Driving between multiple pages : If more people buy a large amount of cryptocurrencies at the same time, this may indicate a coordinated effort to pump the price.
3
Lack of transparency : Legal investment opportunities generally provide clear and transparent information on their business practices, strategies and finances.
- Fast pressure : Be careful if the investment option quickly creates urgency or pressure, preventing careful research time.
Red flags: The usual tactics used by fraudsters
Fraudsters often use various tactics to attract victims and pump the cryptocurrency price:
1
Initial Coin Offers (ICO) : Be careful for ICOs that promise an unusually high yield or guaranteed profit.
- Social Media Campaigns : Fraud can use social media platforms to distribute false information about cryptocurrencies, so a sense of urgency between investors.
3
Pumps and Dump Places : fraudsters are often found on sites for pumping cryptocurrency prices, distributing false information and promoting purchase orders.
How to protect yourself
To avoid the rect cristocurlency market:
1
Do thorough research : Study the cryptocurrency and the technology underlying it before investment.
- Check information : Check the cryptocurrency emissions or developer site to check their needs and finances.
3
Different Portfolio : Distribute the investment in several cryptocurrencies and assets to reduce risk.
- Use replace replacement platforms : Invest with replace replacement platforms, strict security measures.
5
Market Trends : Follow market trends and handle the sudden price movement carefully.
What if it is repeated
If you respond with a pump and dump scheme, it is important to act:
1
Report on Fraud : Submit a complaint to public administration, such as the Securities and Stock Exchange Committee (SEC) in the United States.
- Contact Exchange : Inform the assistance platform for fraud and losses.
3
Seek professional advice : Consult with a financial advisor or lawyer to understand your chance to recover from the loss.
Conclusion
Pumping and Dump systems pose a significant threat to the cryptocurrency market, and fraudsters focus on investors looking for unusually high yields. If you are aware of warning signs and take steps to protect yourself, you can reduce the risk of remedy the cryptocurrency market.