Cryptocurrency Scams: Pump and dump trading

in #cryptocurrency7 years ago (edited)

Today, i am going to discuss about one of the various ways you can get scammed while trading cryptocurrencies:

Pump and dump crypto groups
Anyone who is new to trading cryptocurrencies should be careful and stay away from pump and dump groups. Basically, this is how the scam works:

-> You are invited to join a pump and dump group chat on telegram or whatsapp.

-> All the groups promise a fair pump to everyone by pretending to choose a coin to pump at a certain time and certain exchange. But the truth is group owners have already bought big amounts at cheap prices.

-> Now, they ask you all to buy the coin and hold on to it till the coin is pumped to a certain value like 10% or 20%. And as soon as it hits the peak, they sell the coins even without you noticing them.

A example graph is shown below:

fakepump.png

-> End result: everyone who bought their coins during the pump end up losing money.

-> These scammers always target low volume & shit coins.

Hope this helps the new traders.

Sort:  

Congratulations @allaboutcrycoins! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of posts published

Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

By upvoting this notification, you can help all Steemit users. Learn how here!

Nice post, i followed your account, please follow me at @mrrandy

Congratulations @allaboutcrycoins! You received a personal award!

Happy Birthday! - You are on the Steem blockchain for 2 years!

You can view your badges on your Steem Board and compare to others on the Steem Ranking

Vote for @Steemitboard as a witness to get one more award and increased upvotes!

Pump and dump trading refers to a manipulative trading strategy in the financial markets. It involves artificially inflating the price of a stock or cryptocurrency through false or exaggerated statements, luring unsuspecting investors to buy in. Now you can visit https://www.smartnewo.com/ for the best air pumps. Once the price reaches a peak, the perpetrators sell their holdings, causing the price to plummet, leaving other investors with significant losses. This unethical practice is illegal and can have severe consequences for those involved.