Let me explain to you the concept of “pump and dump” in the cryptocurrency market. This strategy is used to artificially raise the prices of digital currencies, which are then sold to make profits after attracting investors to buy them at high prices.
Pump: refers to the increase in digital currency prices over a short period of time. This usually happens due to positive news about those currencies.
Dump: means a sharp decline in cryptocurrency prices during the same period.
To avoid falling victim to this strategy, here are some tips:
Check currency listings: Look for information about currencies before investing in them.
Analysis of emerging companies and price charts: Examine the development and trends of currencies.
Avoid low-priced, high-risk stocks: Beware of investing in low-value currencies.
Reminder: Although the pump and dump strategy may be profitable, it is considered unethical and may involve significant risks.