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Pump and Dump

Beginner

A pump and dump is a market manipulation scheme where a group artificially inflates the price of a cryptocurrency through hype or misinformation (the pump), then sells off their holdings at the peak (the dump). This causes the price to crash, leaving late buyers at losses. It’s illegal in traditional markets and discouraged in crypto, especially with newer or low-volume tokens. Being cautious and conducting thorough research can help avoid falling for these tactics.

Related Words

Public Key

Beginner

A public key is a cryptographic address used to receive cryptocurrency. It’s paired with a private key and can be safely shared with others to receive funds without risking security.

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