🚨 Beware of the Scheme That Could Make You Lose Everything: Pump and Dump in Cryptocurrencies!
Have you ever heard of Pump and Dump? This practice, which seems tempting, is actually an illegal and very dangerous scheme for investors. Let's understand how it works:
1️⃣ Pump (inflate the price):
An organized group buys large quantities of a little-known and low-value cryptocurrency. This makes the price rise quickly, attracting the attention of other investors.
2️⃣ Dump (dump):
When the price is high, these same organizers sell everything at once, causing the value of the currency to plummet. Those who entered this “wave” late end up at a loss.
How to identify and avoid it?
✔ Be wary of miraculous promises: If someone says that a currency will “explode” in a short time, be on the alert. ✔ Research before investing: Study the project, see if it has real utility and avoid unknown coins.
✔ Beware of rapid movements: Graphs with absurd rises followed by sudden falls are clear signs of Pump and Dump.
✔ Invest responsibly: Don't let yourself be carried away by the fear of missing out on an opportunity (FOMO).
💡 Remember: This practice is illegal in many countries and harms honest investors. In the cryptocurrency market, knowledge is your greatest protection!
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