How to identify and avoid pumping and landfills in Crypto
The world of cryptocurrency trade has gained significant increase in popularity in recent years, and many investors have been going mass to participate in a rapid growth market. Although the potential of high profit is attractive, the risks associated with cryptocurrency trade are equally terrifying. One of the most important threats of merchants is the pump and overturned system, a typical scam that can lead to significant losses.
In this article, we will deepen the world of the encryption store, focusing on how to identify and avoid pumping and landfills. We also provide tips for investors who wish to navigate the cryptocurrency market in a complex and often opaque world.
What are the bombs and landfills?
The pump and the landfill is a type of fraud that includes artificially increasing the price of cryptocurrency through the use of false or misleading information. The objective of this system is to create an increase in demand, which is then sold at an extended price for earnings.
The Pummers, also known as “Pumpers”, use various tactics, including social media messages, online forums and other channels, to promote cryptocurrency. These promoters often claim exaggerated statements about the possible benefits of currency, such as their “innovative technology” or “revolutionary approach.” The objective is to create a sense of urgency and emotion around the currency, which leads to greater demand.
Pumping and landfill warning signs
Before placing in any cryptocurrency, it is necessary to be aware of the pump warning and landfill signals. Here are some red flags that must be observed:
- Inspeled Promotion
: If someone approaches a specific investment opportunity without asking you first or doing your research, it can be a sign that it announces deception.
- On advertising language : If the promoter uses too dramatic language, such as “pioneer technology” or “revolutionary approach”, this can be a sign of a pump and landfill.
- Lack of transparency : If the promoter does not provide clear information about its investment strategy or encryption promotion, this can be a red flag.
- United Social Network Messages : Be careful with the messages of social networks that look too good to be true or promote a specific cryptocurrency without a clear context.
- Fast price increase : If the price of cryptocurrency increases suddenly and dramatically after a message or promotion, this may be a sign of a pump and landfill.
How to identify the pump and the landfills
While warning signals can be an indication of a pump and landfill, they are not empty. If you want to identify any scam, follow these steps:
- Complete an exhaustive study : Before investing in any cryptocurrency, carrying out an exhaustive research on coins technology, market development and financing.
2
- Verify regulatory warnings : Verify whether the regulatory authority has issued a warning or prohibition of promoting certain cryptocurrencies.
4
How to avoid pumping and landfills
Follow these steps to avoid the victim of a bomb and the landfill: Follow:
- Study thoroughly : Before placing any cryptocurrency, carrying out an exhaustive research on coins technology, market development and financing.
2
3.