As a business reporter, Elizabeth Libby Keatinge Scheideler focuses her career on financial developments while also striving towards empowering women to take control of their personal finances on her platform FundsSavvy.com. As part of her interests, Elizabeth Keatinge closely follows any news in the cryptocurrency sector and how pump and dump scams can affect inexperienced investors.

A pump and dump scheme relies on schemers buying cryptocurrency coins, typically with relatively low value or popularity. When looking to invest in cryptocurrency, consider your news source. Social media influencers may have a bias, for example. Widening the scope of research to include differing viewpoints can give a better indicator of the true value of the currency.

While minor altcoins are typically more susceptible to pump and dump schemes, popular ones can fall victim to them too. However, more valuable coins might bounce back after a dump relatively soon, allowing you to recoup most or all of the investment.

When dealing with cryptocurrency, beware that there are always risks involved in this particularly speculative form of investment. Don’t invest more money than you’re willing to lose.