Want to know about PnD in crypto trading? PnD or Pump and Dump is a very dangerous market manipulation scheme for retail investors. The mechanism is simple: a group of market players coordinate to artificially inflate the price of a digital currency until creating buyer euphoria, then they sell simultaneously causing the price to plummet drastically.

This PnD scheme is technically illegal in most jurisdictions, but it still often occurs in less regulated crypto markets and platforms with low oversight. The main victims are beginner investors attracted to rapid price surges without understanding the fundamentals of the asset.

How to identify potential PnD? Watch for disproportionate price spikes without fundamental news, trading volume that skyrockets, and momentum that seems artificially created. Smart investors always conduct thorough research before entering assets with such extreme movements.