Pumping and discharge diagrams: how to avoid being rekt on the cryptocurrency market
The world of cryptocurrency has been marked by numerous pump and discharge patterns over the years. These scams target investors without distrust, promising unusually high yields on their investments, only to empty them dry before causing massive losses to those gathered. In this article, we will immerse ourselves in the dangers of pumping and discharge patterns and to provide advice on how to avoid being a victim.
What is a pump and emptying diagram?
A pump and discharge system is a type of financial scam where a group of people artificially inflates the price of a cryptocurrency or a stock thanks to a coordinated effort to buy large quantities, creating a false feeling of request. Once the price has reached its peak, they sell their actions to inflated value, leaving other investors significant losses to other investors.
How to identify a pump and empty diagram
To avoid being Rekt (replenished), it is essential to be aware of the warning signs of a pump and a discharge pattern:
- Unusually high yields : Be suspicious if an investment opportunity promises unusually high yields with little or no risk.
- Coordination between several parts : If several individuals buy large quantities of a cryptocurrency at a time, this can be a sign of a coordinated effort to pump the price.
- lack of transparency : legitimate investment opportunities generally provide clear and transparent information on their commercial practices, strategies and finances.
- Pressure to act quickly : Be careful if an investment opportunity creates a feeling of emergency or pressure to act quickly, without giving time to in -depth research.
Red flags: common tactics used by crooks
Scholars often use various tactics to attract victims and increase the price of their cryptocurrency:
- Initial offers of parts (ICO) : Beware of ICOs which promise unusual yields or guaranteed benefits.
- Social media camps : crooks can use social media platforms to disseminate false information on a cryptocurrency, creating a sense of urgency among investors.
- Pumping and emptying sites : Schools often host websites designed to increase the price of their cryptocurrency by disseminating false information and promoting purchase orders.
How to protect yourself
To avoid being Rekt on the cryptocurrency market:
- Perform in-depth research : Before investing, search for cryptocurrency and its underlying technology.
- Check the information : Consult the website of the transmitter or developer of the cryptocurrency to verify their complaints and their finances.
- Diversify your portfolio
: Repair your investments on several cryptocurrencies and asset classes to minimize the risks.
- Use deemed exchange platforms : Invest with renowned exchange platforms that have robust security measures in place.
- Monitor market trends : Keep an eye on market trends and be careful about the sudden movements of prices.
What to do if you have been Rekt
If you have been Rekt by a pump and discharge scheme, it is essential to take measures:
- Report the scam: file a complaint with the regulatory authorities, such as the Securities and Exchange Commission (SEC) in the United States.
- Contact your exchange : Inform your scam exchange platform and ask for assistance to recover your losses.
- Look for professional advice : Consult a financial advisor or a lawyer to understand your loss recovery options.
Conclusion
Pump and discharge patterns are a significant threat to the cryptocurrency market, with crooks attacking without distrust in search of unusual yields. By being aware of the warning panels and taking measures to protect yourself, you can minimize the risk of being Rekt on the cryptocurrency market.
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