Beginner friends in the crypto world, attention!
In this exciting market, it is vital that you learn to recognize and avoid a type of scam called "Pump & Dump."
What is a "Pump & Dump"?
It's a malicious scheme where a group of people (often with many followers or capital) buys a large amount of a low-value or lesser-known cryptocurrency. They then use social media, Telegram chats, Discord, or WhatsApp groups to artificially "pump" the price of that coin, creating excitement and promising quick profits to unsuspecting investors.
When many beginners buy attracted by the hype and the price rises quickly, those who initiated the scheme "dump" their coins, selling them at a much higher price. This causes the price to plummet and those who bought late are left with worthless coins and significant losses.
How to protect yourself as a beginner?
▪️Beware of promises of quick profits: If it sounds too good to be true, it probably is.
▪️Always research (DYOR): Before investing in any coin, take the time to understand the project, its technology, its team, and its purpose. Don't just follow the "hype" or trends.
▪️Avoid groups that "coordinate" purchases: If you are invited to a group where it is decided when to buy a specific coin to "pump" it, run away! It's a sure trap.
▪️Don't let FOMO (Fear of Missing Out) lead you: Emotions are the worst advisor in trading. Urgency is a common tactic of these scammers.
▪️Learn the basics: Understand what market capitalization, trading volume, and the fundamentals of a good crypto project are. Your money is valuable. Investing with knowledge and caution is the best long-term strategy.
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