Can the Crypto Market Be Manipulated?

Like any other market, the crypto market is prone to manipulation. Such manipulation involves using deceptive methods on the market with the motive of reaping gains from the ensuing turmoil

The absence of regulation on the crypto market leaves it susceptible to manipulation Manipulation is injurious to the crypto market. It increases the volatility of cryptocurrencies thus scaring off potential investors

Manipulation comes in various forms, some of which are:

● Spoofing: Here an individual or group of individuals with mischievous intentions try to influence the price of a particular cryptocurrency by placing fake orders in large quantities.This tricks other investors into buying or selling more crypto.The trend in the price now adjusts to suit the miscreants

● Pump and Dump: Some investors agree to "pump" the value of a cryptocurrency by investing huge funds into it.The pump in value attracts other investors who are ignorant of the plot As more investors are attracted, the value keeps pumping to a certain amount intended by the manipulating group. In a coordinated manner, they then "dump" the crypto at a high profit

● Wash Trading: Certain groups of individuals agree and start buying and selling a particular crypto asset steadily.This will portray an increase in the 24-hour volume of that cryptocurrency on exchanges Akey statistic that attracts investors is this 24-hour volume and they invest ignorantly As the price of the digital asset increases, the wash traders dump this asset causing a sheer drop in its value.

● Bogus news on social media:This time, the culprits propagate fake news on social media about a digital asset.This news may be aimed at causing panic in the crypto market or driving the prices of cryptocurrencies up. You can escape being a victim of all these by verifying info on crypto from different, trusted sources and careful study of the trend in the price of cryptocurrencies.