Psychology behind the patterns of cryptocurrency and demolition: understanding of the mind games that are played on investors

Cryptocurrency has been a hot topic in the financial world in recent years, and its value has quickly risen to unprecedented levels. However, under the surface of this exciting market there is an uncanny reality – psychology behind the diagrams of pumps and discharges used to manipulate investors from their hard -earned money.

What are pump and dump diagrams?

Pump and dump diagrams are a kind of fraud in connection with securities that consist of artificial overuse of the security price by distributing incorrect or misleading information on this topic. In connection with cryptocurrency, pump schemes and screenshots usually take place on internet markets, social platforms and other digital forums.

Psychology for pumps and screenshots

Pump and dump diagrams are often used by natural persons to wash money, cheat investors and manipulate prices in the hope of quick profit. But what prompted these people to behave? To understand this, we have to deal with psychology behind the diagrams of pumps and discharges.

Psychology of greed

In short, the psychology behind the diagrams of pumps and screenshots can be attributed to greed. People have an innate tendency to look for prosperity and material goods. If you invest in safety or cryptocurrency, you may feel emotions and wait for possible returns. However, if the price grows quickly, some people may be too sure that in their investments in the distribution of false information to convince others to buy at an overvalued price.

Fomo psychology (fear of the absence)

Fomo – Fear of the absence is another factor that drives the pump and schemes of screenshots. People who see that others buy a certain cryptocurrency or security can feel the pressure to avoid potential advantages. This can cause you to spread false information, false reviews or other misleading data in order to convince others.

Psychology of social evidence

Social proof is another key factor for pumps and screenshots. When people see that others buy a certain cryptocurrency or security, they can feel pressure to join social responsibility or “leave”. This can cause you to spread false information or incorrect reviews to convince others.

Emotional manipulation psychology

Pump and dump diagrams often contain emotional manipulation. Fraudsters can use tactics such as the generation of urgency, the use of print sales or playing emotions, fear or greed. You can also create false signs or profiles to gain the trust of potential investors.

Examples of pump diagrams and dump in cryptocurrency

Over the years there have been many examples of pumping diagrams and cryptocurrency waste. One of the remarkable examples is the Futures -Bitcoin fraud, in which a group of people closed false futures contracts for Bitcoin and did not sell them anything that suspected investors at excessive prices. Another example is Hack Mt. Gox, in which Hacker stolen cryptocurrencies worth millions of dollars from Japanese exchange.

Protection against pumps and screenshots

In order to protect yourself against pump schemes and cryptocurrency discharge, this is necessary:

• Test : Before you invest in safety or cryptocurrency, make sure that you have carried out thorough research by the company, its technology and market.

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