Beware of Virtual Currency Pump-and-Dump Schemes
Before you invest, here are some best practices you must undertake to play it safe.
On the other hand, however, social media also presents opportunities for fraudsters. By using social platforms, fraudsters can spread fake or misleading information about any investment asset to a large number of individuals with minimum effort and at a comparatively low cost. As per the U.S. Securities and Exchange Commission, fraudsters also conceal their true identities by acting anonymously or perhaps impersonating credible sources of market information.
Depending on the intent of fraudsters, the information they spread may be positive or negative. For example, in an exceedingly "pump-and-dump"
Deviation from low price to high price or vice versa causes a drastic loss for the investors who come under the influence of fraudsters.
Before you invest, here are some best practices you must undertake to play it safe in the stock market:
• Do Own Research before investing.
• Consult with an approved investment adviser.
• Stay away from exchanges involved in fraudulent activities.
• Avoid high leverage as it may lead to a total loss of the capital.
How does AlphaEx try to avoid such an event?
By reducing the deviation. For example, AlphaEx provides a maximum deviation of 30% where the fraudsters can't raise the price certainly. To further ensure your safety while trading, you can opt to use the AlpahEx exchange platform as we prohibit unprecedented deviation. To attain that, any asset's price can experience a maximum deviation of 30%. This would prevent fraudsters from causing baseless price movements.
AlphaEx has also developed an AI-based tool that detects suspicious trading activity. In case of any such activity, the AI bot automatically blocks users involved in causing the stir and notifies the compliance team regarding the same to take immediate action. That's how we keep a strong check on fraudsters from manipulating the market and render you a safe trading experience on AlphaEx.
Stay Safe. Invest Smart.