Prices are artificially pushed higher by early participants. Once prices rise, organizers sell their holdings, causing sharp declines.
Late participants usually buy near the top and experience losses when prices collapse.
Common signs include guaranteed profit claims, urgency-based messaging, secret signals, and lack of transparency around strategy and risk.
Legitimate trading does not rely on pressure or secrecy.
If an opportunity requires urgency or blind trust, it is usually designed to benefit only a few participants. Caution is always the safer approach.
Automation tools do not eliminate risk. Users should fully understand strategies before enabling automated trading.