$ENA $BTC Golden tip for beginners:

FAKE DUMPS

A fake dump in the context of cryptocurrencies is a market manipulation strategy that attempts to simulate a price drop (or dump) of a specific asset, with the aim of deceiving investors and profiting from market reactions.

How a fake dump works

Fake Sell: Manipulators create large sell orders or spread negative information about the cryptocurrency to trick other investors into thinking that the asset is about to crash.

Panic: This creates panic in other investors, who start selling their coins to avoid losses, which makes the price actually fall.

Cheap Buy: After the price drops due to other investors selling, manipulators buy the cryptocurrency at reduced prices.

Price Recovery: With the market calmer and the fake sell orders removed, the price starts to rise, benefiting those who bought during the artificial drop.

Signs of a False Dump

Suddenly Increased Volume: Large selling volumes that appear and disappear quickly can be a sign of manipulation.

Suspicious Orders in the Order Book: Very large sell orders that do not match the natural price movement.

Disparities between Platforms: If the price of a cryptocurrency drops significantly on one platform but remains stable on others, this may indicate manipulation.

How to Protect Yourself

Study the Market: Before acting impulsively, analyze the volume, price history and credibility of the platform where the asset is being traded.

Avoid Rushing: Reacting quickly to an unconfirmed price movement can increase the risk of falling into a false dump.

Reliable Sources: Follow news and analysis from reliable sources to understand whether the drop is well-founded or if it could be manipulation.

These movements are more common in cryptocurrencies with smaller capitalization, which have less liquidity and are easier to manipulate.