How to Identify the 'Scalping' Traps in the Cryptocurrency Space

In the cryptocurrency world, the most common stories are not about getting rich overnight, but rather about the painful tales of being 'scalped'. Recognizing scalping traps is a necessary lesson for every investor.

First, be wary of cryptocurrencies with volatile price swings. When a coin skyrockets several times in a day, it is often not a miracle but rather the result of market manipulators. They create the illusion of rising prices with their funds, attracting retail investors, and then they quickly sell off and exit the market.

Secondly, understand the team's background and the essence of the project. Many 'air coins' have flashy websites and whitepapers filled with jargon, but the teams are anonymous, lacking technical implementation, and rely solely on hype. The essence of these projects is simply to raise money and run away.

Next, be cautious of KOL (Key Opinion Leader) endorsements and community frenzy. When a coin suddenly appears frequently on Twitter, in group chats, or even gets collectively shared by influencers, it may be a prelude to a scam. Those who shout about 'xx hundredfold coins' may not genuinely care about your profits.

Finally, pay attention to trading depth and lock-up mechanisms. Many cryptocurrencies, even if you buy them, may prove impossible to sell when you want to, leading to extremely poor liquidity, leaving you helpless as they plummet to zero.

The cryptocurrency space is never a utopia; traps are everywhere. Learning to discern between real and fake projects is the first step to protecting yourself and going further.