Dark side cryptocurrency: understanding of the market handling

Cryptomes such as Bitcoins and Ethereum have led the world with a storm with quick growth and increasing acceptance. However, if you become the main currents, the concerns related to the market are increasing. In this article we immerse yourself in the world of cryptocurrencies and examine how the market for market processing can affect the ecosystem.

What is market handling?

Market manipulation concerns a deliberate and systematic attempt to artificially influence the security or assets price by creating false or misleading market data. This can be achieved by different means, including:

* Price equipment : Artificially inflated or deflationary prices to achieve a wrong impression of value.

* Pump and landfill systems : Price processing to increase demand and then sell an asset with profit, which led to bought others.

* Spoofing on the market : Creation of fake orders for the market for handling and effects of the direction.

The role of cryptocurrency in market processing

Due to their decentralized nature, cryptoma are particularly susceptible to market handling. In contrast to conventional assets such as stocks or bonds, cryptocurrencies work in a peer-to-peer network without a central body or regulatory authority. This means that everyone can create and act cryptocurrency with an internet connection, which leads to a complex market of market players.

Why cryptocurrencies are susceptible to manipulation

Several factors make cryptocurrencies more susceptible to manipulations:

* Decentralization : The decentralized nature of cryptocurrency makes it difficult to intervene or regulate the market.

* Limited regulation : In contrast to traditional markets, cryptocurrencies have no effective regulation and supervision, which makes it easier to operate the market by operating the market.

* High -speed trade

: Cryptocurrency exchange and markets can handle high real business and create an environment that leads to treatment.

Examples of market manipulation in cryptoms

Several remarkable examples illustrate the risks to manipulate the cryptomized market:

* Bitcoin (BTC) pump and landfill scheme

: In 2017, a group of people organized a massive pump and landfill scheme to artificially build the price of BTC. The program included the creation of false shopping activities to increase prices.

* Ethereum (ETH) market processing : In 2020, the algorithmic trading company was accused of manipulating the ETH price in order to create and carry out complex business in order to influence its direction.

Consequences of market manipulation

The consequences of manipulation on the cryptoma market can be serious:

* Financial loss : Investors who buy a false or manipulated price can experience considerable financial losses.

* Systemic risk : Manipulation with a large market can have systemic consequences that influence the general stability of ecosystem cryptoms.

!

relief market handling

In order to avoid manipulation with the cryptomized market, the regulatory authorities and market participants have to work together to create effective regulations and supervisory mechanisms:

* Regulatory framework : Governments have to develop robust regulatory framework conditions that solve the unique challenges of cryptocurrency.

* Anti-Panieza linen (AML) and Knowledge Koyc (KYC) : Cryptocurrency exchange and merchants have to carry out AML and KYC robust measures to prevent illegal activities.

* Monitoring and reporting : The market participants should be obliged to report suspicious attempts, to fulfill or manipulate activities.

ETHEREUM BITCOIN MERKLE