Research

Mastering Paginated API Responses: Efficiently Listing All Transactions

Learn how to reliably retrieve complete transaction histories using paginated API responses. Discover best practices, security tips, and tools for seamless crypto data analytics.
Token Metrics Team
5
MIN

Managing large volumes of blockchain transaction data is a common challenge for developers building crypto dashboards, on-chain analytics tools, or AI applications. Most APIs limit responses to prevent server overload, making pagination the default when listing all transactions. But how can you reliably and efficiently gather complete transaction histories? Let’s dive into proven strategies for handling paginated API responses.

Understanding Pagination in Transaction APIs

APIs often implement pagination to break up large datasets—such as transaction histories—into manageable portions. When requesting transaction data, instead of receiving thousands of records in one call (which could strain bandwidth or lead to timeouts), the API returns a subset (a "page") and instructions for fetching subsequent pages.

  • Limit/Offset Pagination: Requests specify a limit (number of items) and an offset (start position).
  • Cursor-Based Pagination: Uses tokens or "cursors" (often IDs or timestamps) as references to the next page, which is more efficient for real-time data.
  • Keyset Pagination: Similar to cursor-based; leverages unique keys, usually better for large, ordered datasets.

Each method affects performance, reliability, and implementation details. Understanding which your API uses is the first step to robust transaction retrieval.

Choosing the Right Pagination Strategy

Every API is unique—some allow only cursor-based access, while others support limit/offset or even page numbering. Choosing the right approach hinges on your project’s requirements and the API provider’s documentation. For crypto transaction logs or on-chain data:

  • Cursor-based pagination is preferred—It is resilient to data changes (such as new transactions added between requests), reducing the risk of skipping or duplicating data.
  • Limit/offset is practical for static datasets but can be less reliable for live transaction streams.
  • Hybrid approaches—Some APIs provide hybrid mechanisms to optimize performance and consistency.

For example, the Token Metrics API leverages pagination to ensure large data requests (such as all transactions for a wallet) remain consistent and performant.

Best Practices for Handling Paginated API Responses

To list all transactions efficiently, adhere to these best practices:

  1. Read Documentation Thoroughly: Know how the API signals the next page—via URL, a token, or parameters.
  2. Implement Robust Iteration: Build loops that collect results from each page and continue until no more data remains. Always respect API rate limits and error codes.
  3. De-Duplicate Transactions: Especially important with cursor or keyset strategies, as overlapping results can occur due to data changes during retrieval.
  4. Handle API Rate Limits and Errors: Pause or back-off if rate-limited, and implement retry logic for transient errors.
  5. Use Asynchronous Fetching Carefully: For performance, asynchronous requests are powerful—but be wary of race conditions, ordering, and incomplete data.

Below is a generic pseudocode example for cursor-based pagination:

results = []
cursor = None
while True:
    response = api.get_transactions(cursor=cursor)
    results.extend(response['transactions'])
    if not response['next_cursor']:
        break
    cursor = response['next_cursor']

This approach ensures completeness and flexibility, even for large or frequently-updated transaction lists.

Scaling Crypto Data Retrieval for AI, Analysis, and Automation

For large portfolios, trading bots, or AI agents analyzing multi-chain transactions, efficiently handling paginated API responses is critical. Considerations include:

  • Parallelizing Requests: If the API supports it—and rate limits allow—fetching different address histories or block ranges in parallel speeds up data loading.
  • Stream Processing: Analyze transactions as they arrive, rather than storing millions of rows in memory.
  • Data Freshness: Transaction data changes rapidly; leveraging APIs with webhooks or real-time "tailing" (where you fetch new data as it arrives) can improve reliability.
  • Integration with AI Tools: Automate anomaly detection, value tracking, or reporting by feeding retrieved transactions into analytics platforms. Advanced solutions like Token Metrics can supercharge analysis with AI-driven insights from unified APIs.

Security Considerations and Data Integrity

When fetching transaction data, always practice security hygiene:

  • Secure API Keys: Protect your API credentials. Never expose them in public code repositories.
  • Validate All Data: Even reputable APIs may deliver malformed data or unexpected results. Safeguard against bugs with schema checks and error handling.
  • Respect Privacy and Compliance: If handling user data, ensure storage and processing are secure and privacy-respectful.

Systematically checking for data consistency between pages helps ensure you don’t miss or double-count transactions—a key concern for compliance and reporting analytics.

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Frequently Asked Questions

What is pagination in APIs and why is it used?

Pagination is the process of breaking up a large dataset returned by an API into smaller segments, called pages. This practice prevents bandwidth issues and server overload, improving response times and reliability when dealing with extensive data sets such as blockchain transactions.

Which pagination method is best for crypto transaction APIs?

Cursor-based pagination is typically best for live or evolving datasets like blockchain transactions, as it’s less prone to data inconsistency and works well with rapid updates. However, always follow your chosen API’s recommendations for optimal performance.

How do you ensure no transactions are missed or duplicated?

Always implement data de-duplication by tracking unique transaction IDs. Carefully handle cursors or offsets, and consider double-checking against expected transaction counts or hashes for reliability.

Can I fetch all transactions from multiple addresses at once?

This depends on the API's capabilities. Some APIs allow multi-address querying, while others require paginated requests per address. When retrieving multiple lists in parallel, monitor rate limits and system memory usage.

How can AI and analytics platforms benefit from proper pagination handling?

Efficient handling of paginated responses ensures complete, timely transaction histories—empowering AI-driven analytics tools to perform advanced analysis, detect patterns, and automate compliance tasks without missing critical data.

Disclaimer

This blog post is for informational and educational purposes only. Nothing herein constitutes investment advice or an offer to buy or sell any asset. Please consult relevant documentation and a qualified professional before building production systems.

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Token Metrics Team
Token Metrics Team

Recent Posts

Crypto Basics

Crypto Lending Explained - Benefits, Risks and Top Lending Platforms in 2023

Sumit Meghani
8 Minutes
MIN

Are you looking for a new way to invest your cryptocurrency? Or perhaps you're in need of a loan, but tired of dealing with traditional financial institutions. If so, you may want to consider crypto lending.

Crypto lending is a relatively new phenomenon that's gaining popularity among investors and borrowers alike. It's a form of peer-to-peer lending where individuals or institutions can lend or borrow cryptocurrency, such as Bitcoin or Ethereum, using a decentralized platform.

In this article, we will cover a comprehensive overview of crypto lending, including its functionality, benefits, risks, and the leading platforms for crypto lending in 2023.

What is Crypto Lending?

Crypto lending is a service within the decentralized finance (DeFi) ecosystem that enables investors to lend out their cryptocurrency holdings to borrowers. As a lender, you earn regular interest payments on your crypto deposits, similar to how you would earn interest in a traditional savings account.

Image Resource: www.rocketmortgage.com/learn/what-is-crypto-lending

Crypto lending platforms can either be centralized or decentralized, and they offer varying interest rates depending on the platform and other factors.

On the other hand, borrowers can use cryptocurrency lending platforms to obtain cash loans by collateralizing their crypto holdings. By posting collateral, borrowers can access funds without having to sell their crypto holdings, which can be beneficial during market downturns. 

How Does Crypto Lending Work?

To participate in crypto lending, you'll need to find a reputable platform that offers this service. There are several platforms out there, such as Nexo, BlockFi, and Celsius Network, to name a few.

Once you've found a platform you trust, the process is fairly straightforward. Here's a step-by-step guide to how crypto lending works:

Step 1: Create an Account - The first step in crypto lending is to create an account on the platform of your choice. This usually involves providing some personal information (KYC), such as your name and email address, and creating a password.

Step 2: Deposit Cryptocurrency - Next, you'll need to deposit cryptocurrency into your account. This will be the cryptocurrency that you use to lend or borrow funds.

Step 3: Choose a Lending or Borrowing Option - Once your account is set up and your cryptocurrency is deposited, you can choose whether you want to lend or borrow funds. If you're looking to lend, you can select a lending option that meets your needs. This may involve choosing the cryptocurrency you want to lend, the interest rate you want to charge, and the length of the loan term.

If you're looking to borrow, you can select a borrowing option that meets your needs. This may involve choosing the cryptocurrency you want to borrow, the interest rate you're willing to pay, and the length of the loan term.

Step 4: Wait for Approval - Once you've selected your lending or borrowing option, you'll need to wait for approval. This may involve a credit check or other verification process, depending on the platform you're using.

Step 5: Receive Funds - If you're approved, you'll receive the funds in your account. If you're lending, the borrower will receive the cryptocurrency they've borrowed. If you're borrowing, you'll receive the cryptocurrency you've borrowed.

Step 6: Make Payments - If you're borrowing, you'll need to make regular payments to repay the loan. This will usually involve paying interest on a monthly basis. If you're lending, you'll receive regular payments from the borrower, which will include the interest you've charged.

Step 7: Close the Loan - Once the loan term is over, you'll need to repay the full amount of the loan, plus any outstanding interest. If you're lending, you'll receive your cryptocurrency back, along with the interest you've earned. If you're borrowing, you'll need to repay the cryptocurrency you've borrowed. 

How to Make Money with Crypto Lending?

Crypto lending can be an effective way to earn passive income with your cryptocurrency holdings. Here are some important things to know, to make money with crypto lending:

  • Choose a reputable crypto lending platform: Selecting a reliable platform is crucial for successful crypto lending. Look for platforms with a proven track record, solid security measures, and transparent lending terms.
  • Determine your lending strategy: Decide on the amount of crypto you want to lend out and for how long. Longer lending periods often yield higher returns, but also carry more risk.
  • Set competitive interest rates: Set an interest rate that's competitive with other lending platforms. A higher rate may attract more borrowers, but also increases the risk of defaults.
  • Manage your risk: Conduct thorough due diligence on potential borrowers and keep a diversified portfolio to mitigate risk. Additionally, consider collateral requirements and loan-to-value ratios when selecting borrowers.
  • Reinvest your earnings: Reinvesting your earned interest can compound your returns over time, increasing your overall profits.

By following these tips, you can effectively make money with crypto lending while managing your risk and ensuring a stable return on your investment.

Also Read: How to Make Money with Cryptocurrency in 2023

Best Crypto Lending Platforms in 2023

Identifying the ideal lending platform that caters to your requirements can be a daunting task, given the vast number of options available in the market. To help you make an informed decision, we have curated a list of the best crypto lending platforms that you can consider in 2023.

Celsius Network: With over $20 billion in crypto assets under management, Celsius Network is a trusted and well-established platform for crypto lending. It offers competitive interest rates, ranging from 2.5% to 13.99%, depending on the cryptocurrency you lend and the loan duration.

BlockFi: BlockFi is another leading crypto lending platform that offers interest rates ranging from 0.5% to 8.6%, depending on the cryptocurrency and loan terms. It also provides additional services such as crypto-backed loans and a Bitcoin rewards credit card.

Nexo: Nexo is a popular platform for instant crypto loans, and it allows users to earn up to 12% interest on their crypto assets. It also provides a range of other features, such as crypto-backed loans and a credit card.

Crypto.com: Crypto.com is a leading cryptocurrency platform that offers interest rates of up to 8.5% on a range of cryptocurrencies, including Bitcoin, Ethereum, and stablecoins. It also provides other features such as a crypto debit card and an exchange platform.

When choosing a crypto lending platform, it's essential to consider factors such as the interest rates offered, the loan terms, and the platform's overall reputation and security measures. By selecting a reliable and trustworthy platform, you can ensure that your crypto lending investments are safe and profitable.

Benefits and Risks of Crypto Lending

Crypto lending has been gaining significant traction lately due to the potential benefits it offers to both lenders and borrowers. However, like any financial activity, there are also some inherent risks involved. 

Lets understand the benefits and risks associated with crypto lending in detail.

Crypto Lending Benefits

Here are some benefits of crypto lending:

High returns: One of the most significant advantages of crypto lending is the potential for high returns. Many lending platforms offer APYs upwards of 10%, which is significantly higher than traditional savings accounts.

Diversification: Crypto lending provides an opportunity for diversification in your investment portfolio, which can help mitigate risks.

Flexibility: Crypto lending platforms offer more flexibility than traditional financial institutions, with features such as short-term lending, early withdrawal options, and customized loan terms.

Risks Associated with Crypto Lending

Here are some risks associated with crypto lending:

Volatility: The crypto market is known for its volatility, which can impact the value of your investments and potentially lead to losses.

Counterparty risk: When lending your crypto assets to borrowers, there is always a risk that they may default on their loan, leading to a loss of your funds.

Security risks: Crypto lending platforms are not immune to hacking attempts, which can result in the loss of your funds.

The Bottom Line

Overall, crypto lending provides a win-win solution for both lenders and borrowers in the DeFi ecosystem. Lenders earn passive income on their crypto deposits, while borrowers can access much-needed funds without liquidating their cryptocurrency investments.

In conclusion, the crypto lending industry is rapidly expanding, and there are plenty of great options available for investors looking to earn passive income on their crypto holdings. Whether you choose Celsius Network, BlockFi, Nexo, YouHodler, or Crypto.com, it's crucial to conduct your due diligence and select a platform that meets your specific needs and goals.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

Crypto Basics

What is Wash Trading and How to Identify It?

S. Vishwa
7 Minutes
MIN

The financial market can be a mysterious and complex world to navigate, especially for novice investors. It's no secret that there are some shady practices that can take place in it, and one of the most prevalent is wash trading.

In simple terms, wash trading is a practice in which an investor buys and sells the same asset, such as a stock or cryptocurrency, in rapid succession, with the intention of creating the illusion of market activity and inflating the asset's price.

In this article, we'll dive deep into what wash trading is, how it works, and most importantly, how to identify and avoid it.

What is Wash Trading?

Wash trading is, when an individual or group of people buy and sell the same asset to create a false sense of trading activity. The goal of this practice is to manipulate the market by making it seem like there is more demand for an asset than there actually is.

This leads to a rise in the asset's value, which the individuals conducting the wash trade can then take advantage of.

Now, you might be thinking, "Well, that doesn't sound too bad. What harm could it do?" Well, the problem with wash trading is that it's illegal.

It's considered market manipulation and can result in fines, legal action, and even jail time. Not to mention, it's unfair to honest traders who are playing by the rules.

How Does Wash Trading Work?

Wash trading can take many forms, but the most common method involves an investor using multiple accounts to buy and sell the same asset. This creates the appearance of multiple buyers and sellers, when in reality, it is just one person or entity behind all the transactions.

For example, let's say an investor owns 100 shares of ABC Company's stock. The investor uses one account to sell the shares for $10 each, and then immediately uses another account to buy the shares back for $12 each.

The investor has effectively created the illusion of market activity and has also artificially inflated the assets price.

Wash trading can also be done by colluding with other investors to create the illusion of market activity. In some cases, a group of investors will agree to buy and sell an asset amongst themselves, with the intention of inflating the price and then selling the asset to unsuspecting buyers.

Why is Wash Trading a Problem?

Wash trading is a problem for a number of reasons. Firstly, it creates an unfair advantage for the investor who continues to engage in this unethical practice.

They are able to artificially inflate the price of an asset, which can lead to unsuspecting investors buying in at a higher price than they should. This is particularly damaging for new or inexperienced investors who may not be aware of wash trading and its effects.

Wash trading can also lead to market instability and volatility. When an asset's price is artificially inflated, it can create a bubble that eventually bursts, leading to a rapid drop in price. This can have a ripple effect on the market as a whole, potentially leading to panic selling and a market crash.

Also Read: Pump and Dump Schemes - How to Spot and Avoid Investment Scams

Examples of Wash Trading

There have been several high-profile cases of wash trading in recent years, particularly in the world of cryptocurrency. Here are a few examples:

Bitfinex and Tether: In 2018, the New York Attorney General's office accused cryptocurrency exchange Bitfinex and its affiliated stablecoin issuer Tether of engaging in a massive wash trading scheme. The scheme allegedly involved Bitfinex using Tether's USDT stablecoin to artificially inflate the price of Bitcoin and other cryptocurrencies, creating a false sense of demand. The case is still ongoing.

Mt. Gox: Mt. Gox was once the largest Bitcoin exchange in the world, but it infamously collapsed in 2014 after it was revealed that it had lost hundreds of millions of dollars worth of its users' Bitcoin. It was later discovered that Mt. Gox had also been engaging in wash trading, which helped to artificially inflate the price of Bitcoin on its platform.

How to Detect Wash Trading in the Market?

Identifying wash trading can be difficult, as the practice is designed to create the illusion of market activity. However, there are a few red flags to look out for:

Abnormal trading volumes: If you notice that an asset is experiencing unusually high trading volumes, it could be a sign of wash trading.

Abnormal price movements: Wash trading is often used to artificially inflate the price of an asset, so if you notice that an asset's price is moving in an abnormal or inconsistent way, it could be a sign of wash trading.

Suspicious trading patterns: If you notice that the same investor is buying and selling an asset at the same time, or if a group of investors are all buying and selling an asset amongst themselves, it could be a sign of wash trading.

How to Avoid Wash Trading?

The best way to avoid wash trading is to do your research before investing in any asset. Look for assets with high trading volumes and solid fundamentals, and be wary of assets that seem too good to be true.

It is also important to keep an eye out for red flags that may indicate wash trading, such as abnormal trading volumes, abnormal price movements, and suspicious trading patterns.

If you suspect that an asset is being manipulated through wash trading, it is best to avoid investing in that asset altogether.

Finally, it is important to stay educated and informed about the market and its practices. The more you know, the better equipped you will be to recognize and avoid unethical practices like wash trading.

Wash Trade vs Cross Trade

Wash trading and cross trading are both market manipulation techniques that involve buying and selling securities or assets to create false activity and inflate prices.

The key difference between the two is that wash trading involves buying and selling the same asset, while cross trading involves buying and selling different assets at the same time.

Wash trading is often used to create the illusion of market activity, while cross trading is often used to manipulate prices for a particular asset or group of assets.

Both practices are illegal in most financial markets and can lead to heavy fines and legal penalties for those caught engaging in them.

Is Wash Trading illegal in Crypto?

Wash trading is illegal in most financial markets, including the cryptocurrency market. The practice is considered a form of market manipulation that creates false activity and distorts prices, which can harm investors and disrupt the market as a whole.

In the United States, the Commodity Futures Trading Commission (CFTC) has taken action against several cryptocurrency exchanges for engaging in wash trading, and has imposed heavy fines on those found guilty.

Additionally, many cryptocurrency exchanges have implemented measures to prevent wash trading on their platforms, such as using trading volume as a metric to determine the validity of trades.

The Bottom Line

In conclusion, wash trading is a sneaky and illegal practice that can have serious consequences for traders and the market as a whole. Remember to always do your research, stay informed, and be wary of red flags that may indicate wash trading.

With a little knowledge and vigilance, you can avoid falling victim to this harmful practice and make smart, informed investment decisions.

Also by understanding the signs of wash trading and taking action to report it when necessary, investors and traders can help to keep the market fair and transparent for everyone.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

Crypto Basics

Pump and Dump Schemes - How to Spot and Avoid Investment Scams

Token Metrics Team
7 Minutes
MIN

As the world of finance continues to evolve, new and innovative investment opportunities have emerged. However, alongside these opportunities come potential risks and scams.

One such scam that has become increasingly prevalent is the "pump and dump" scheme. In this article, we'll discuss what a pump and dump scheme is, how to spot it, and how to avoid falling victim to such investment scams.

What is Pump and Dump?

Pump and dump is a type of investment fraud used in the financial market where one or more people intentionally raise the price of a stock, crypto or other financial assets by disseminating false or deceptive information to lure investors. 

Once the price has increased to the desired level, these manipulators sell their shares at a profit, leading to a decrease in price, and leaving innocent investors with securities that are either worthless or overpriced.

How Does the Pump and Dump Scheme Work?

The mechanics of a pump and dump scheme works by manipulating microcap assets, such as penny stocks or cheap cryptos, which are companies with a small market capitalization. These assets are usually traded at a very low price, and do not follow strict requirements for public listing.

Therefore, scammers can easily manipulate information about these assets. The lack of publicly available information provides fraudsters with favorable conditions since potential investors lack the necessary sources to verify all the information about a company and management.

Moreover, microcap assets are highly illiquid and have very low trading volume. As a result, even small transactions can significantly boost the asset price.

The fraudster typically starts by buying a large number of shares in that type of micro cap asset, then spreading false information about the company through various channels, such as social media, chat rooms, and email newsletters.

Once the price of the asset has been artificially inflated, the fraudsters will begin selling their holdings, realizing significant profits. As the scheme is uncovered, the price of the asset typically plummets, leaving unsuspecting investors with significant losses.

Types of Pump and Dump Schemes

There are several types of pump and dump schemes in financial world, including:

Pre-arranged pump and dump: A group of fraudsters will agree to buy a particular asset simultaneously, creating an artificial demand and price surge. Once the price has reached a certain level, the fraudsters will sell their holdings, causing the price to crash.

Social media pump and dump: Fraudsters will use social media platforms to spread false information and create hype around a particular cryptocurrency, stocks or any other asset, encouraging investors to buy. Once the price has been inflated, the fraudsters will sell their holdings.

Exchange-based pump and dump: Fraudsters will use exchanges with low liquidity to create artificial demand for a particular asset, causing the price to surge. Once the fraudsters have sold their holdings, the price typically crashes.

Role of Social Media in Pump and Dump Schemes

Social media plays a significant role in pump and dump schemes as it allows individuals to disseminate false or misleading information about a stock or cryptocurrency quickly and easily to a large audience. 

Scammers may create fake social media profiles or use existing ones to promote the cryptocurrency or digital asset and spread positive news about it, encouraging others to invest. They may also use social media to organize groups of investors to buy and sell the asset at specific times to manipulate its price. 

Social media platforms such as Twitter and Telegram are popular channels for these activities. Investors must be cautious and verify the accuracy of information before making investment decisions based on social media posts or messages.

Pump and Dump Examples

Here are some real-life examples of crypto pump and dump schemes:

Verge - In April 2018, the cryptocurrency Verge experienced a sudden price increase of over 300% in just a few hours. The price increase was caused by a group of individuals who coordinated a pump and dump scheme on social media platforms. The group created false hype around the cryptocurrency, which caused a massive influx of investors who were looking to get rich quickly. 

Soon after the scheme was executed, the value of the cryptocurrency dropped sharply, resulting in substantial losses for investors who failed to dispose of their holdings promptly.

DogecoinDogecoin is a cryptocurrency that was created as a joke in 2013 but gained a significant following due to its popularity on social media. In 2021, a group of individuals on Reddit coordinated a pump and dump scheme on Dogecoin, causing its value to increase significantly in a very short span of time.

The group created a social media campaign that encouraged investors to buy and hold Dogecoin, which caused its value to skyrocket. However, as with all pump and dump schemes, the value of the cryptocurrency eventually plummeted, causing significant losses for investors who were not able to sell their holdings in time.

How to Spot Pump and Dump?

There are several warning signs that investors can look for to spot a pump and dump scheme -

High-pressure sales tactics - Fraudsters often use high-pressure sales tactics to convince investors to buy into a stock or crypto quickly before the price goes up. They may use language such as "this is a once-in-a-lifetime opportunity" or "you don't want to miss out on this."

Unsolicited investment advice - Be wary of unsolicited investment advice from people you don't know, especially if it comes in the form of an email or social media message. Fraudsters may pose as legitimate investment advisors or insiders and offer tips on assets that are "about to take off."

Huge price swings - If you see a stock that is experiencing huge price swings with no apparent reason, this could be a sign of a pump and dump scheme. 

Lack of information - If you can't find any information about a company or its products, this could be a red flag. Pump and dump fraudsters often create shell companies or use obscure assets to make it difficult for investors to do their due diligence.

Misleading information - Be skeptical of any information that seems too good to be true. Pump and dump fraudsters often make false or misleading statements about a company's financial health, products, or industry.

How to Avoid Pump and Dump Schemes?

Here are some tips for avoiding pump and dump investment scams:

Do your research - Before investing in any stock, crypto or other asset, do your research. Read the company's annual report, financial statements, and news articles about the company.

Be skeptical - If an investment opportunity seems too good to be true, it probably is. Be skeptical of high-pressure sales tactics, unsolicited investment advice, and promises of guaranteed returns.

Avoid small-cap cryptocurrencies or assets - Investors should be wary of investing in small-cap cryptocurrencies or assets, particularly those with low liquidity.

Use stop-loss orders - Investors can use stop-loss orders to automatically sell their holdings if the price of the cryptocurrency or assets falls below a certain level.

Diversify your portfolio - Don't put all your eggs in one basket. Diversify your portfolio by investing in a variety of stocks, bonds, cryptos and other assets. This will help minimize your risk and protect you from losses.

Use a reputable trading platform - When buying or selling assets, use a reputable trading platform only. Check the platform's credentials and make sure they are trusted, widely used and legally registered.

Is Pump and Dump illegal?

Yes, the pump and dump scheme is illegal as it involves the intentional manipulation of the price of assets through false or misleading information. This scheme is a violation of securities laws in many jurisdictions and can result in serious legal consequences for those who participate in it. 

In addition to legal repercussions, individuals who fall victim to the pump and dump scheme can suffer significant financial losses. It is essential for investors to be aware of the risks associated with this fraudulent activity and to exercise caution when investing in cryptocurrencies.

The Bottom Line

In conclusion, the pump and dump scheme is a fraudulent trading strategy that manipulates the price of financial assets by artificially inflating its value resulting in illegal profits for a select group of individuals. 

It is important for investors to be cautious, while making investment related decisions in the stocks, cryptos and digital assets. Since these assets can be volatile and unpredictable.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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