The psychology behind the cryptocurrency pump and landfill: understanding of the opinions of investors
Cryptocurrency has been a hot topic in recent years and its value quickly increases to an unprecedented level. In these exciting markets, however, there is a worse reality – psychology behind the pump and landfill, with which investors are manipulated for their hard money.
What are the pumps and landfills?
Pumps and landfills are a kind of securities fraud that artificially increases the security price by spreading incorrect or misleading information. Cryptocurrency, pumps and landfills are usually organized on the online market, on social media platforms and other digital forums.
Psychology behind the pump and landfill
Individuals often use pump and landfill money, fraud for investors and manipulate prices in the hope of a quick victory. But what drives these people to participate in such behavior? To understand this, we have to take the psychology into account behind the pump and landfills.
The psychology of Angleity
In short, the psychology behind the pump and landfill can be traced back to greed. People tend to find natural tendency, prosperity and material property. If you invest in safety or cryptocurrency, you may feel excitement and anticipation for income. However, if the price rises quickly, some people can become too safe in their investment and spread false information in order to convince others to buy at an increased price.
Fomo psychology (fear of deficiency)
Another factor that drives the pump and landfills is Fomo’s fear of lack. People who see that others buy a certain cryptocurrency or security can feel pressure to avoid potential advantages. This can cause you to spread false information, false reviews or other misleading information in order to convince others.
Social evidence of psychology
Social evidence is another key factor for pumps and landfills. If individuals see that others buy a certain cryptocurrency or security, they may feel the pressure to join or avoid a socially responsible responsibility, to avoid “abandoned”. This can cause you to spread false information or incorrect reviews to invest others.
Emotional manipulation psychology
Pumps and landfills often contain emotional manipulations. Fraudsters can play tactics such as urgency, high pressure outlets or emotions such as excitement, fear or greed. You can also create the wrong people or profiles to gain the trust of potential investors.
Examples of pumps and landfills in cryptocurrency
In cryptocurrencies there have been several examples of pumps and landfills over the years. A remarkable example is the Bitcoin -Futures fraud, in which a group of people closed the wrong futures contracts for Bitcoin and sold them to unsuspecting investors for extended prices. Another example is Mt. Gox Hack, where hacker encryption currency worth millions of dollars stolen from the Japanese exchange.
Protect yourself from pumping and dumps
In order to protect yourself against pumps and landfills in the encryption currency, this is necessary:
- Create your research : Before you invest in safety or cryptocurrency, make sure that you have carried out thorough research to the company, its technology and its market.
- Pay attention to unwanted advice : If someone offers you unwanted advice on a certain investment, you should be careful – you can try to manipulate you to buy your own pump and landfill.
3.
