How to protect yourself from manipulation
1. Use trusted platforms:
Choose well-known platforms like Binance, Coinbase, Kraken, and others that have a good reputation in the market.
2. Analyze the market carefully:
Don’t get carried away by rapid price movements. Check market news and data analysis.
3. Ensure liquidity:
Avoid trading in currencies or platforms with low liquidity where manipulation is easier.
4. Don’t get too ambitious:
If you see a currency rising significantly in a short period of time, be careful because it may be part of a Pump and Dump scheme.
5. Review the platform’s history:
Check if the platform has been involved in legal troubles or accusations of manipulation in the past.
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Can manipulation be eliminated?
Despite regulatory efforts by governments and regulatory bodies in many countries, the decentralized and unregulated nature of many cryptocurrencies makes eliminating manipulation a challenge.
However, the impact of manipulation can be reduced by:
Increasing transparency in the market.
Stricter regulation.
Artificial intelligence techniques to analyze trading and detect suspicious patterns.
Always make sure to trade with caution and based on reliable information.