Crypto market manipulation is defined as a deliberate attempt to influence the value of assets and disrupt a crypto market trend.
Bad actors create illusions to inflate or deflate market prices in order to profit. For example, they could disseminate false information, send out a series of pressuring tweets, generate bogus orders, issue false market signals, speak negatively about an asset to instill fear in traders, and so on. As a result, you must be able to recognize and counteract the manipulative tricks you will encounter as you progress.
Market manipulation has harmed both cryptocurrency investors and the cryptocurrency market as a whole. It makes the market unnecessarily volatile and dangerous for investors, a problem that has caused many traders and investors to abandon the market.
- ๐๐๐ฌ๐๐๐ซ๐๐ก ๐๐ง๐ ๐๐ฎ๐ฅ๐ญ๐ข๐ฉ๐ฅ๐ ๐๐จ๐ง๐ฌ๐ฎ๐ฅ๐ญ๐๐ญ๐ข๐จ๐ง๐ฌ
Before trading, conduct research by confirming prices from various reliable sources. You can compare asset prices and data for relative relatedness by using multiple crypto exchanges. Cross-checking a price on one exchange against another, for example, can reveal the true price and help you avoid a rug pull or pump and dump. - ๐๐ญ๐ฎ๐๐ฒ ๐๐ข๐ฌ๐ญ๐จ๐ซ๐ข๐๐๐ฅ ๐๐ซ๐๐ง๐๐ฌ
They say that the trend is your friend. Historical trends provide trading precision because the data is consistent and reliable. Bad actors frequently prey on recent market trends but may struggle to distort historical trends. Trading on current trends may help reduce the rate at which market manipulation affects pricesโmanipulated trends do not last. - ๐๐ฅ๐ฐ๐๐ฒ๐ฌ ๐
๐จ๐ฅ๐ฅ๐จ๐ฐ ๐๐จ๐ฎ๐ซ ๐๐ซ๐๐๐ข๐ง๐ ๐๐ฅ๐๐ง ๐๐ง๐ ๐๐ข๐ฌ๐ค ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐ซ๐๐๐ญ๐ข๐๐๐ฌ
Following a trading plan can keep you from trading on the spur of the moment or based on social media hype. Your trading plan should include trade execution guidelines as well as risk management strategies. You can trade based on a predetermined market condition with this in place. This is not to say that you will be completely immune to market manipulation. However, it will put you in a better position than someone trading on the spur of the moment.
- ๐๐ฉ๐ญ ๐๐จ๐ซ ๐๐จ๐ง๐ -๐๐๐ซ๐ฆ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ๐ฌ
Most market hypes are fleeting, and those who HODL their crypto do not suffer the negative consequences that short-term traders do. - ๐๐ฌ๐ ๐๐ซ๐ฎ๐ฌ๐ญ๐๐ ๐๐ฑ๐๐ก๐๐ง๐ ๐๐ฌ ๐๐ง๐ ๐๐จ๐ข๐ง๐ฌ
Always trade on reputable exchanges. Market manipulation is common in new exchanges and coins with little trade activity. This is not to say that attackers cannot manipulate market prices on exchanges with high trade volumes; they simply have a smaller margin of error when compared to newer exchanges. - ๐๐ข๐ฏ๐๐ซ๐ฌ๐ข๐๐ฒ ๐๐จ๐ฎ๐ซ ๐๐จ๐ซ๐ญ๐๐จ๐ฅ๐ข๐จ
Given the possibility of market manipulation, putting all of your eggs in one basket may be a bad idea. It is a good idea to study different crypto asset prices to gain predictive patterns from how they behave in order to diversify your portfolio. This not only helps to reduce the impact of potential market manipulation, but it also helps to mitigate investment risks.