Crypto market tricks & traps

[depaul]

Hi friends. Unlike official crypto forums where they encourage you to buy their coin, we're here a community built on gaming. We're not interested in your money or anything.. So I had the idea to share tricks and traps employed in the market:

- The market is indeed trying to make you lose money. Why ? Because they want liquidity from you.
- The market maker is your rival/enemy. They're hunting for stop losses to make you close your position at loss (Google stop loss hunting).
- Most trading in exchanges is done using AI (artificial intelligence) algorithms and HFT (High Frequency trading) bots. That's why they can easily predict and counter your trades, and make a lot of profit.
- Pumps and dumps: some dishonest group will plan to inflate some coin, by quickly buying massively, triggering many short positions liquidation, pushing the price even higher. The other ignorant traders will think the coin is a good investment and buy (FOMO), usually late when the price got pumped. At some predetermined time, all the pumpers quickly sell and take profit, leaving the others with big losses.
- Beware of meme/charity/ambiguous projets. Most projects won't recover .. and price will simply keep decreasing.
- Before investing in any project, check the team behind. Check their Twitter/Facebook/LinkedIn. They must be serious and skilled. Any project without known team is a red flag.
- Beware of project with low ratio: "circulating supply / total supply". They can release tokens anytime making token value sink.

Any other idea you want to share is welcome

EDIT: Returning after years of experience with my subjective advice: Buy Bitcoin, and only Bitcoin.

It's better to have a stable +50% a year than to chase "the next 10X alts" and lose 90%.

Most alts went -80% during the previous bear market, then -80% again... Now probably they're preparing to dump another -80%! Don't touch those scams (make no exception).

 

[FAST6191]

Known team is no great hedge from where I sit. Seen enough of those that appear to also know economics fail hard.

Anything claiming to be a stablecoin is a scam, or at very best gambling.

For the most part crypto seems to be market sector linked at this point, though some variables are being teased out still (the US dollar drop did seem to send it higher despite most tech and markets being flat/low.

 

[The Catboy]

I happen to be a trap that's involved in the crypto market.
Honest advice, try to avoid obvious shitcoins. This isn't to say all shitcoins are obvious but there are some that are clearly obvious, like MILFCoin and shit. If you find yourself asking yourself, "does this look like a scam/shitcoin?" chances are higher that it is.

 

[The Real Jdbye]

what is stablecoin??

Anything that claims to be backed by real money, gold or other assets with a "real value", stored in a vault somewhere in a 1:1 ratio to the supply of the coin, so the price is supposed to stay the same (hence stable). Tether (USDT) has gotten a lot of shit for lying about the fact that it's not in fact backed 1:1 by USD, and we don't know if other stablecoins are also lying, but it's highly plausible that they are.
I tend to trust BUSD more, because it's owned by Binance which is a site I generally trust, they have been in the business longer than most and haven't given people any reason to doubt them.

 

[depaul]

And are these really effective tricks?

They're used against you. The goal of this thread was to help protect your money, not how to make a profit

 

[TraderPatTX]

These are good rules to live by when trading on any exchange whether it be the NYSE, NASDAQ or crypto. The key to trading is to know your entry and exit points and your max loss (don't hold on to losing trades). Find a strategy that works for you and become an expert at that one strategy. Trading is not the place for people to become a jack of all trades. Also, do not follow other people because they are getting into the trade late which means by the time you get into it, the stock has already made it's move.

 

[ivlalcorex]

ty so much was looking into gettting in to crypto , this info is very useful

 

[depaul]

ty so much was looking into gettting in to crypto , this info is very useful

With pleasure Bro. Now it's a good time to invest because prices are low, although I never introduce anyone to cryptos because of high risks.

Not financial advises, but just some experience that might help you lower risks :

-Only invest a fraction of money you don't need
-Buy gradually, not at once. (example: buy with 10% of your capital every time prices drop)
-Diversify, diversify, and keep diversifying : invest in multiple projects, put your funds across multiple exchanges, use 2 or multiple stable coins...etc. Why? because anything can go wrong anytime (Luna, FTX, USDC...)
-Don't touch leverage. It does more harm than good.

Good luck