Research:
Learn as much as you can about the crypto currency space and the particular coins that pique your interest. Recognize the development team, community, use case, and technology underneath them. This will enable you to spot anomalies and make well-informed decisions.
Keep Up:
Remain informed on the most recent events and advancements in the bit coin world. Maintain up-to-date knowledge about partnerships, regulatory changes, and any potential red flags related to the projects you invest in by following reliable sources.
Examine abrupt changes in price or strange trading trends with skepticism. It’s usually true when something looks too wonderful to be true. Do your homework before succumbing to hype or FOMO (Fear of Missing Out).
Watch Out for Pump and Dump scams:
These scams involve coordinated buying to artificially increase the price of crypto currencies, which is then abruptly sold off to profit at the cost of gullible investors.
Verify Trading Volume:
Keep an eye on the volume of trades. While low volume coupled with large price swings may be an indication of manipulation, high volume can also be a sign of real interest and liquidity.
Stay away from unregulated exchanges and only use trustworthy, licensed bit coin exchanges. Exchanges that are not governed are more vulnerable to fraud and manipulation.
Spread Your Bets:
By spreading your bets among several crypto currencies, you can reduce the chance that any one of them will be impacted by manipulation.
Utilize Technical Analysis:
Develop your ability to recognize trends and possible entry or exit points by using technical analysis tools. Technical analysis can shed light on market mood and behavior, even though it might not be enough to stop manipulation on its own.
Set Stop-Loss Orders:
If the price of your assets falls below a certain threshold, you might think about setting up stop-loss orders to sell them automatically. This can lessen possible losses in the event of an unexpected decline.
Trust Your Instincts:
If anything seems strange or too unsafe, follow your gut and think about backing off. It is preferable to lose out on possible profits than to become a victim of deceit or manipulation.
You can lessen your chances of becoming a victim of manipulation in the bit coin market by remaining aware, being cautious, and following your gut.
