Bitcoin is nowadays in the news a lot. Prices were steady for such CryptoCurrency from the year 2014 through most of the year 2017 and then they had started to spike early in the year 2018. This run bitcoin on all over the social media platform and people too were investing too much. Many numbers of people finally started buying Bitcoin without any real understanding of the structure or value of cryptocurrency. Some people also found themselves the victims of scam of bitcoins which have re-emerged now. Not all the price of bitcoin in January 2018 was the scam, but some of it certainly really was.
It shows that there is new life breathing into the old scam which takes benefits of the human wish for faster results which are now called the “Bitcoin pump and dump”.
Now, what is exactly Pump and Dump?
Pump and dumps are always around until the stock market is. The team of scam artists will come together and buy the bunch of penny stocks which raises the price of these stocks higher and higher. As the price raises, outsiders also invest in the stock by using the wide promises of money easily.
At the predetermined rate, the scam artists sell off the shares of the market stock. This causes the price of the stock tumble and thus the investors for losing all the money. Whereas the scam artists show up the difference in the pricing of the stock market.
The new Pump and Dump Scam of Bitcoin!
The latest technology has likewise made this pump and dump scam of bitcoin that investors can fall even if they will never fall for the traditional scheme. It is the issue of the old scam being effected in an unusual and new way where people are not ready for it.
These new schemes are shared and aware just because of the use of fake stories of news and celebrities. Digital technology is very good seeming real and true but it is never easy to tell the real and true stuff from the false one. If the person who has ended up catching this, it can go to the financial damage unless and until you know how to find out the scam or invest anywhere
How to ignore the pump scam of bitcoin?
As the most scams go, the best thing you need to do is to stay alert and informed. When you are finally informed, then you are not the easy goal and the scam artists would go up along to anyone else.
This individual scam is now the big issue or says concern that the US government via the commission of commodity futures trading has the guide which is designed for helping investors to be aware of the potential risks of bitcoin.
Ignore the single tip buying – as it is the best thing to avoid when buying any type of investment on a single tip. As the investor, you must go towards your due diligence and understand what exactly you are investing in.