What does Pump and Dump mean in crypto? And how do you know it?
💰 Pump and Dump means quickly inflating the price of a currency (Pump) and then suddenly selling it (Dump), which causes the price to collapse and the one who bought at the wrong time loses.
🚨 How do you discover it?
1. Sudden increase in price and hype: If you see a currency rising strangely and a lot of people are talking about it suddenly.
2. Unnatural trading volume: Trading increases abnormally in a short period.
3. Relying on hype rather than a strong project: If there is no logical reason or clear project behind the rise of the currency.
✅ Tips to protect yourself:
1. Research well about any project before you invest.
2. Don't believe rumors and hype on social media.
3. Invest in strong projects with a clear basis.
#BinanceBlockchainWeek Binance#Crypto_Awareness#PumpAndDump