Understanding Market Manipulation in the Crypto Market

The issue why a lot of crypto traders always fail when it comes to the crypto market is the fact that they fail to really understand how it works. They just rushed to it and at the end of the day, they discovered that they actually made some mistakes in it. I was also a victim many years ago. The crypto market is not just a market that you rushed into probably because you thought you can guess your way to it. It does not work that way.

If there is one thing the crypto market is actually known for, it is the fact that it is always volatile. When I mean volatile, I mean highly volatile. There are a whole lot of factors that affect the volatility nature of the crypto market. We have examples like news, Fomo and one of it is market manipulation which I will really like to talk about today.

Image Source

If there is actually a particular type of the factoe that constantly affect the crypto space recently, I will say it is the market manipulation and it is getting often day by day. It happens when some set of individuals most of the time called the whales purposely influence the price of an asset or crypto in order to create another perspective about the crypto. There are a whole lot of reasons that the market can be manipulated.

Image Source

In this particular year 2025, I will say we have witness more of market manipulation and it is getting increasingly which should not be so. One of the most common type of market manipulation is the pump and dump scheme where some set of people come together to artificially push the price of a token up. Then a wrong perception is created which make a whole lot of people to rush to it and at the end of the day, they take in their profit when the price have gone up leading to significant loss.

The crypto market is getting volatile day by day and I guess it is really necessary that every trader understands the crypto market so that you will not be negatively affected by factors like the market manipulation. If you understand this, it will help you to know how to strategically position themselves to it.