What Investors Need to Know About Pump-and-Dump Frauds
Tags: scammers, cryptotradingbot, futurestradingbot
Published: 2023-02-03 20:40:35

Don’t get scammed by investment frauds like pump-and-dump! Learn the five key things to look out for and how to protect yourself when investing.

Pump-and-dump schemes have been around for years, and it’s important to understand how to spot them and protect yourself from investment fraud. Knowing five key telltale signs of pump-and-dump scams can help you avoid becoming a victim and make smarter investing choices.


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## Understand What Pump-and-Dump Is.
Pump-and-dump scams are attempts to artificially boost the price of a stock, commodity, cryptocurrency coins or other asset through false and misleading statements. Typically, fraudsters will buy shares in an obscure stock, crypto coin and then spread false rumors to create enthusiasm in the market. They may encourage people to buy the stock or crypto token quickly, before they claim its value will skyrocket. The goal is to lure more investors and drive up the price. Once it reaches the desired level, they sell their own holdings, making a profit at everyone else’s expense.

## Be Aware of Red Flags.
Pump-and-dump scams can be difficult to spot, so it’s important for investors to be aware of the potential warning signs. These can include high trading volumes in an obscure stock or cryptocurrency, guaranteed returns, and promises of quick profits. Be wary of emails claiming insider information and positions that sound too good to be true. Frequently repeating phrases designed to build excitement should also be treated with caution. Always verify tips or advice with a trusted financial advisor before investing.

## Educate Yourself about Legitimate Investing Strategies.
Studies show that people tend to be more vulnerable to pump-and-dump scams when they have an incomplete or misguided understanding of the crypto market. Therefore, it’s important for investors to take the time to educate themselves about legitimate investing strategies. Researching and following reliable news sources, studying the coins or projects you are considering investing in, and consulting with a trusted professional can all help to ensure that your financial decisions are well informed.

## What are crypto pump and dump scams?
Crypto pumps are not regulated and hence not restricted in any way. Crypto pump signals via Telegram groups are very popular as they are fast, easy to organise and the admins can make big profits. There are a few groups where you are able to make profits when you use a so called pump and dump bot or pump dump robot. The trick is to buy faster and sell before admins sell, giving you the possibility to make big profits in a short period of time.

However not all pump groups are profitable. Hotbit pump groups Telegram are 99% pure scams as there is no way to make a profit with them. Hotbit pumps often show an astonishing 1000% plus profit candle. The only problem is that everyone can achieve thus results. Hotbit has many shitcoins that can easily be pumped. If you take a closer look you will find many coins which can be pumped 1000% and more with only 100$. This means the admins can pump the price up and will sell with high profits to you. That is the reason you should avoid hotbit pump signals.

## Conclusion on Crypto pump and dumps
Pump and dump schemes and scams can be found everywhere. The newest and most popular way are crypto pump and dumps. There are many scams out there you should be aware of. But never the less there is a way to make profits. Check out our pump pump bot and our crypto pump telegram groups and you will see that you are able to make big profits.