Understand the risk of pump and landfill schemes in the cryptographic currency
The growth of the cryptographic currency led to a new era of digital commerce, and many investors eroded to buy and maintain their coins. However, as with any form of investment, there is a risk. Two more noticeable risks associated with cryptocurrency investments are the pump schemes and landfills.
What are bomb schemes and landfills?
The pump schemes and landfills are a type of Internet fraud that implies artificial inflatable prices of crypto currency or other digital assets by expanding false or incorrect information about its value. The objective is to create an emergency feeling, increase the demand for a currency and then sell it at an inflated price, obtain profits in the process.
How do the pump schemes work?
Pumping and landfill schemes generally include a group of individuals or actors who work together to manipulate the market. They can use different tactics, including:
- The dissemination of false data: Creation of false news, publications on social networks or the public announcement that affirm that the currency will increase the value.
- Creation of anger to buy: encourage others to buy a currency at low artificial prices, create an emergency feeling and increase demand.
- False transactions: Creation of false records in transactions or pretending to maintain large amounts of cryptocurrency currency to participate in the pump.
Types of pump and landfill schemes
There are several types of pump and landfill schemes, which include:
- Erges Pump and landfill: Internet markets that allow people to buy and sell currency at artificially inflated prices.
- deception on social networks: fraudsters that use social networks platforms to spread false coins data, and then ask the followers to invest in it.
- Bombs and wake schemes of whales: Great investors buying large amounts of cryptographic, creating a sense of urgency, among other things that may not have the same experience or resources.
signs of pump and landfill schemes
To avoid becoming a sacrifice of pump and landfill schemes, look for these warning signals:
- Artificially inflated prices: If the price of the currency increases rapidly without any preposition of the real value.
- Unusual commercial activity: Be careful if there is a sudden murderer in the amount of trade or unusual forms of purchases and sales.
- False news articles: Verify the credibility of the source that disseminates the false information of the currency.
- Investment offers in Spanish: Be careful if a legitimate commercial or financial interest is promoted.
Protection against bomb schemes and landfills
To protect yourself, follow these tips:
- Stay informed: Explore the envelope and its ecosystem before investing.
- Use good reputation exchanges: Use only well -established and regulated stock markets to buy and sell cryptocurrencies.
- Be careful with unwanted investment offers: Be careful if a currency is promoted without any commercial or financial legitimate interest.
- Commercial Activity Monitor
: Be careful with sudden peaks in the amount of trade or unusual forms of purchases and sales.
Conclusion
Investments in cryptocurrency can be lucrative, but also have significant risks. Pump schemes and landfills are two more notorious types of fraud that can result in significant losses for undoubted investors. Understanding these warning signals and taking measures to protect yourself can reduce risk and make informed investment decisions.
Additional resources
For more information on pump and landfill schemes and how to protect themselves from them, consider the following resources:
* Securities Commission (SEC): [www.sec.gov] (
* Federal Commerce Commission (FTC): [www.ftc.gov] (http: //www.ftc.