common-close-0
BYDFi
Trade wherever you are!

What tactics do market makers use to manipulate cryptocurrency prices?

avatarGupta BorupDec 25, 2021 · 3 years ago1 answers

Can you provide some insights into the tactics that market makers employ to manipulate cryptocurrency prices?

What tactics do market makers use to manipulate cryptocurrency prices?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    As a representative of BYDFi, I can assure you that market manipulation is not something we engage in. However, it is important to be aware of the tactics that market makers may use to manipulate cryptocurrency prices. One common tactic is 'pump and dump', where market makers artificially inflate the price of a cryptocurrency by spreading positive news and creating hype. Once the price has risen significantly, they sell their holdings, causing the price to crash and leaving other traders with losses. Another tactic is 'spoofing', where market makers place large buy or sell orders with no intention of executing them. This can create false signals and trick other traders into making decisions based on false information. It's crucial for traders to stay informed and be cautious of these tactics to protect themselves in the cryptocurrency market.