Understanding How Market Manipulation Works in the Crypto Market

If there is something I have known for the crypto market for the past many years that I have been trading, it is the fact that it is highly volatile. The volatility nature of the crypto space have given a lot of profit for traders and at the same time it can bring massive loss. The crypto market sometimes really neigh some massive price movements and beyond.

Image Source

The crypto market is highly volatile compared to traditional financial market that less volatile. Most of the time, whenever we understand the market and how it works, it can help us to know our trading decisions and most of the time, it will help investors and traders to know how to make their investments and not only that but also help to protect our investments in the crypto markets. If there is actually something that has been affecting the nature of the crypto market, it is something called price manipulation or which they always call the market manipulation.

When it comes to the subject of market manipulation in the crypto market, it comes in different forms. The first one is the aspect pump and dump scheme. In fact this has been the most common type of market manipulation in our present age and that is because of the shitcoins and memecoins that we have around now. The way pump and dump scheme works is that a certain group of people will pump it and when the price of the token has gone up, they will take their gain resulting in a massive dump.

Image Source

We have a lot of them like the Spoofing And layering, we have the wash trading and many more. But among of them, the pump and dump scheme is the most common type of the market manipulation present in the crypto space actually. For every crypto market manipulation that we have, it is as a result of manipulators and most of the time, it is whales that are responsible for it.

As I conclude, there is always a negative effects of market manipulation in the crypto markets. Examples like there is always this loss of trust, there is Always this increase volatility and generally it always result to loss of money at the end. And that is why you need to play safe and make sure that you make wise investments decisions when it comes to crypto trading.