The big players and project owners in the cryptocurrency market are often well versed in human nature and can use human weaknesses and market psychology to manipulate the market, similar to the "fishing rule" strategy. These "forces" will use various means and strategies to lure ordinary investors into the market and trade. The following are some of their commonly used strategies and coping methods:
Common baits and tactics
1. Create FOMO (Fear of Missing Out):
• Project owners or big investors create a sense of urgency by releasing various positive news, announcing major collaborations or technological breakthroughs, thereby triggering the market’s fear of missing out on investment opportunities.
• They may promote their products on social media and news media to attract investors' attention and follow-up buying.
2. Pulling and dumping:
• Use large amounts of funds to manipulate the market, creating the illusion of rapid price increases and attracting retail investors to follow suit.
• After retail investors have bought in large quantities, they gradually start to sell, causing prices to fall and retail investors to be trapped.
3. Disguise the bottom:
• By controlling trading volume and buy and sell orders, the illusion is created that prices are stable in a certain low range, making investors mistakenly believe that it is the bottom and thus buy.
• In fact, they may have already prepared to sell at high levels, waiting to cash out when prices rebound.
4. Posting false news:
• Spread false or exaggerated information to create the illusion that a project is about to usher in significant positive news and attract investors’ attention.
• This method is common in some unknown projects, which make profits through short-term speculation.
*(All of the above methods are no longer limited to some unknown projects. Projects that were popular in the last bull market, without traffic, attention and technological innovation, naturally cannot bring new capital injection, so they start to use this method or it can be said that this is another normal situation)
solution
1. Be vigilant and make rational judgments:
• Stay vigilant and rational about various information and news in the market, and do not believe unconfirmed news.
• Before investing, conduct sufficient research and analysis to evaluate the authenticity of the news and the actual value of the project.
2. Open positions and set profit and loss limits in stages:
• Adopt a phased position building strategy to avoid large one-time investments and diversify risks.
• Set reasonable take-profit and stop-loss points and strictly implement them to avoid being troubled by market fluctuations.
3. Focus on long-term value:
• Focus on the long-term value and practical application of the project, and do not be affected by short-term fluctuations and market sentiment.
• Invest in projects that have practical application prospects and technological innovation capabilities.
4. Avoid blindly following the trend:
• Do not blindly follow market trends and maintain independent thinking and judgment.
• Before investing, fully understand the fundamentals and technical details of the project to avoid being misled by market hype.
5. Use technical analysis:
• Learn and master some technical analysis tools and methods to judge market trends and price movements.
• Combine technical analysis and fundamental analysis to make more scientific investment decisions.
* (Lower your expectations and magnify the risks. Don’t be recharged with “fake, big, empty” beliefs. You must know that the chip costs of investors and project parties are negligible. The last bull market has already recovered all of them. Now the project is a cash cow.)
in conclusion
In the cryptocurrency market, investors need to have a clear mind and rational judgment. Understanding the baits and strategies commonly used by big investors and project parties can help investors be more vigilant and avoid falling into traps. At the same time, through scientific investment methods and strategies, risk diversification, strict profit and loss control, and focus on long-term value, you can get a steady return in this market full of opportunities and risks. Keeping learning and paying attention to the market, and constantly improving your investment ability is the key to success.
*You must protect the chips in your hand, which is as important as your own life*
