Pump And Dump Schemes: How To Avoid Being Rekt

Pump and Dump -Schema: How can you avoid to follow up on the cryptocurrency market

The world of cryptocurrency has been marked over the years by numerous pump and garbage schemes. These frauds are aimed at unsuspecting investors who promise their investments of unusually high returns just to dismiss them dryly before we cause massive losses for those included in this article. How to avoid being a victim.

What is a pump and dump scheme?

A pump and dump system is a kind of financial fraud in which a group of people artificially inflate the price of cryptocurrency or stocks through coordinated efforts to buy large quantities and cause incorrect feeling of demand. As soon as the price has reached its climax, sell your shares to a bloated value and leave other investors significant losses.

How to identify a pump and a dump scheme

To avoid that REKT (Repped) is, it is important to be aware of the warning sign of a pump and dump schemas:

• Unusually high returns : Be careful if an investment option promises unusually high returns with little or no risk.

• Coordination between several parties

  

  : If several people buy large amounts of a cryptocurrency at the same time, this can be a sign of a coordinated exertion to pump the price.

• Lack of transparency : Legitimate investment opportunities usually offer clear and transparent information about your business practices, strategies and financial data.

• ** pressure, to act quickly

Red flags: frequent tactics used by fraudsters

Fraudsters often use different tactics to attract victims and improve the price of their cryptocurrency:

• Initial coin offers (ICOS) : Be careful with ICOS that promise unusually high returns or guaranteed profits.

• Social -Media campaigns : Fraudsters can use social media platforms to spread incorrect information about cryptocurrency and to achieve a feeling of urgency among investors.

• Pump and dump -sites : Frauds often organize websites that pump out the price of their cryptocurrency and spread incorrect information and promote buying buying.

How to protect yourself

So as not to be on the cryptocurrency market:

• Carry out thorough research : Explore the cryptocurrency and its underlying technology before investing.

• Check information : Check the emittent or developer of the cryptocurrency to check your claims and financial data.

• Diors your portfolio : Spread your investments on several cryptocurrencies and asset classes to minimize the risk.

• Use serious Exchange platforms : Invest with reputable exchange platforms with robust safety measures.

• Consider market trends : Come in the eye of the market trends and be careful with sudden price movements.

What to do if you rect

If you became rect from a pump and dump scheme, it is important to take measures:

• Register the fraud : Submit a complaint to the supervisory authorities such as the Securities and Exchange Commission (SEC) in the United States.

• Contact your exchange : Inform your exchange platform about the fraud and request support in restoring your losses.

• Find professional advice : Consult a financial advisor or lawyer to understand your options for recovery of the loss.

Diploma

Pump and dump programs are a significant threat to the cryptocurrency market, with fraudsters giving themselves against unsuspecting investors who strive for unusually high returns. By being aware of the warning sign and taking steps to protect yourself, you can minimize the risk of becoming rect on the cryptocurrency market.