Today, i am going to discuss about one of the various ways you can get scammed while trading cryptocurrencies:
Pump and dump crypto groups
Anyone who is new to trading cryptocurrencies should be careful and stay away from pump and dump groups. Basically, this is how the scam works:
-> You are invited to join a pump and dump group chat on telegram or whatsapp.
-> All the groups promise a fair pump to everyone by pretending to choose a coin to pump at a certain time and certain exchange. But the truth is group owners have already bought big amounts at cheap prices.
-> Now, they ask you all to buy the coin and hold on to it till the coin is pumped to a certain value like 10% or 20%. And as soon as it hits the peak, they sell the coins even without you noticing them.
A example graph is shown below:
-> End result: everyone who bought their coins during the pump end up losing money.
-> These scammers always target low volume & shit coins.
Hope this helps the new traders.