Methods of Market Manipulation
Let's talk about Market Manipulation.
If you guys are still Naive and Think that Market Manipulation is just some Myth than you are deeply Misguided. Let me explain Market Manipulation a bit.
Market manipulation is a deliberate attempt to interfere with the free and fair operation of any Market and create Artificial, False or Misleading appearances with respect to the price of, or market for, a product, security, commodity or currency.
The Cryptocurrency is now in its Infant stage if you compare it to Others who have been here for Decades. That being said it is susceptible to more Market Manipulation than the Others.
Now there are various ways to Manipulate a Market but let me point out the most important ones.
1. News Manipulation
I don't think this Point needs much Explaining as we just witnessed how Fake News created Panic all around the Market. I was able to buy Bitcoin at 5600 USD as the person selling on Localbitcoins was Panic Selling. That is how bad the Situation gets. Yes, I do agree when the Price slides down it does ache our Heart but we have to bear the pain only to Prosper later.
2. Pump and Dump
Pump and Dumps are classic Manipulation Strategies. Suppose you have 1 Million USD lying around and you decide to Buy a Cryptocurrency with a Medium Market Cap which costs around 1 USD. Since you are putting 1 MIllion USD to that Particular coin you are capable of singlehandedly Driving the Price to about 5 USD. Now you decide to sell all your 1 Million Coins at 4 USD which will tank the price. But you made a 4x Gain in a matter of Hours.
That's an example of a Classic Pump and Dump. Some people get caught in it and sometimes lose a lot of Money.
I hope this Post was useful to you Guys to Understand how Manipulation Works in the Crypto space.
I hope to see you Guys again in my Next Post.
i really understand that, it happened to me the first time i started with the cryptocurrencies haha
But I was really shocked that this Guy was selling way lower than the Market Price.
Who Does that?
very nice post. i learnt a lot here. such is very helpful for new members who are not very knowledgeable in market issues. thank you. Nemaste
@etilda I just visited your Blog and I am really Happy to see you getting Up and about Yourself.
You have just gained another Follower as me.
Both of them are true.
But how can a single entity get involved in pump and dump? Since this is a global currency, don't you think any one person will be very small to do it?
If you have 1 Million USD I think you can do it.
As when you will be pouring Money into a certain Coin you will be Pumping the Value Up which could Pique the Interest of some Traders and they will want to ride the UpTrain and Join you.
Yeah especially on smaller exchanges Pump and Dumps are real problems. And many new "investors" with nearly no clue about Cryptocurrencies and/or Trading often get FOMO when they see a coin increase 100-200% in no time and finally decrease their funds when the pumpers sell.
I used to do that I see a Coin rising in Candles and I buy some as I thought it will explode at any Moment.
FOMO buying is never a smart Choice. You can make some Money out of it but it will never be the Smartest Choice.
Great post and it is great to share this knowledge to newbies in the space about these so they can avoid being burned and losing their money. I suggeste checking out DougPolkCryto on Youtube he does a video about pump and dumps which is hillarious and informative to - hes one of the better Youtubers about Crypto IMO. Keep up the good work!
I just checked out DougPolkCrypto I was not subscribed to him but I did watch some of his Videos in my Suggestion Feed.
Hes brilliant its do refreshing to have someone who admits they dont know everything and doesn't take themselves to seriously
Yes i agree with you and in my opinion also we are watching so many pump and dumps in Cryptocurrency market right now that's why the volatility of prices are reflecting. I think the current face of Bitcoin also the reason of pump and dump. Let's hope that Cryptocurrency market would give profits to everyone. Thanks for sharing.
Stay Blessed. 🙂
@chireerocks you have to consider one Major factor that is Cryptocurrency is still in its Infancy once Cryptocurrencies reach a certain maturation Level I don't think we will see Such Volatility.
Yes, i really agree with you to some extent, but in my opinion the volatility will be there till pump and dump is going on. Let's hope for the best. 🙂
Stay Blessed.
Pump and Dumps becomes a success because other People FOMO buys the Coin when they see it Pumping. If people's gets matured enough then they will stop FOMO Buying.
Ok. I was really unaware of this situation. Thanks for this information
Stay Blessed.
You are right bro .very informative post thanks for sharing
nice insight and post @arunava very glad you shared this so many will understand especially the fake news option. most exchanges have folks hyping some coins so as to pump it for their benefit and dump. thats whats obtainable so people have to be more careful. I did update a lot on what is going on in crypto space especially as regards updated news, take a look also. nice one worthy of my upvote. Nemaste
I will have a look into your Blog as soon as I have some Time.
You will find me there soon.
very well post dear @arunava
i like your post,,,
thanks for share,,,
and good work keep it up
so right!! I saw the dirt first hand years ago...see my latest on the dollar, metals, Crypto..china..thanks again!
I often visit your Blogs @yankee-statman but am unable to Comment as I am not so Knowledgable about some of Your Topics.
So I am just Learning right now.
that means a lot!! and your support is greatly appreciated. and I will visit and support you!
Thanks a lot @yankee-statman