5 Underhanded Ways of Making lots of Money in the Crypto Market
5)Bots
Source:https://www.investopedia.com/news/bot-activity-plays-major-role-cryptocurrency-price-swings/
Automated trading bots are used to buy and sell Crypto to manipulate the market. Taking advantage of the extreme volatility of the market, dozens of bots are used to inflate or crash prices due to mass trade. The Neo token became a victim of botting when the price fell $34 to $3.74 in seconds, then rose back up to $34 shortly after. Smaller currencies are the most vulnerable to botting. Additionally, detecting bots is extremely difficult.
4)Pump and dump
Source:http://www.businessinsider.com/how-traders-pump-and-dump-cryptocurrencies-2017-11
"Pump and dump" are schemes to boost the price of stocks through misleading or greatly exaggerated statements. The scams are coordinated typically though groups and social media channels. Groups push up the price by inflating demand and pushing propaganda. Investors are incentivized by rising prices to trade. Then the group sells off their coins after a desired price, leaving the price plummeting.
3)Crypto Whales
Source:https://www.rt.com/business/414876-bitcoin-whales-keep-forty-percent/
Whales are groups of individuals who own mass amounts of a particular currency. Due to having large capital in the market, whales can greatly influence the direction of the market. Ordinary investors are in the worst position due to markets being easily manipulated in a short amount of time.
2)Scheme Currencies
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Source:https://www.theatlantic.com/technology/archive/2017/05/cryptocurrency-ponzi-schemes/528624/
Ever since the appearance of bitcoin, plenty of other scams arose under the crypto name. Many crypto coins have been exposed as being ponzi schemes, and some are still on the market. Such schemes often present themselves as a guaranteed money maker. The reality is it's only a money maker for those who created the ponzi or those who managed to invest and participate early on.
1)Hacking
Source:https://bravenewcoin.com/news/crypto-wallets-remain-at-risk-from-phone-hacks/
If you are a hacker, the crypto exchange is a gift from god. Hackers stole billions from cryptocurrency markets. Even people with no experience can learn online how to use SS7 exploits to hack investors wallets. Hackers are now targeting Apple and Google apps by using malware to mine crypto coins.
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