Hello cryptocurrency traders. Now I have a new topic about cryptocurrency – it is dumping and pumping. Many of you already know that crypto is a highly manipulative market that runs and controlled by so-called big players – market makers or whales. They can quickly change the price movement in the desired direction.
Pumping cryptocurrency
But low-liquid coins (shitcoins), which have just appeared on the market, can be used by ordinary traders, who often unite in groups for this. These coins can deliberately pump up, that is, overestimate the cost of one or another crypto (pumping), and then deliberately lower it (dumping). All this is done so that members of the community can make money quickly with minimal risk.
Is it profitable or not? Usually, the organizers of dumping and pumping cryptocurrency create special groups on social networks, for example, Telegram, Discord, or Facebook. They invite other users to buy this or that token, guaranteeing its growth in the long term. If this community is real, then the first people who entered and recorded growth in time, really manage to earn money.
However, if you decide to go into the departing train, then there is a possibility that your investment due to the next dumping after the pumping may be lost. Therefore, here, as in classical trading, you need to be careful and understand what and how to do. If you have an audience and a lot of capital, you can even organize the pumping and dumping of a new coin yourself!
Dumping cryptocurrency
It should be noted that some groups of the first link (main group) of pumping and dumping even charge a fee for joining them and the opportunity to receive information about the time of the upcoming pump. The cost ranges from 1 to 10 Bitcoins. In groups of the second and third link, the entrance is usually free of charge, but information arrives there much later and there is a high probability of being dumped.
The scheme and stages of pumping and dumping are as follows. 1. Announcement – pump frequency depends on the user group. From 1 to several times a month. 2. Preparation – prepare crypto bots and equipment for work. 3. Pump – the organizers buy the required coin and disseminate information about the pump. 4. Dump – organizers and lucky traders, who managed to buy tokens on time, sell them to the last participants, who eventually lose money.
The biggest danger is that often many crypto pumping communities are pure scams. That is, there may be no real cryptocurrency and participants may be asked to transfer money for a dummy, and the group may be closed or users may be banned. To summarize, pumping and dumping crypto as a way to make money is possible, but very risky, and its results are not predictable.
The topic about dump and pump of cryptocurrencies is over. I hope you liked this material. Personally, I have not participated and am not going to participate in dumps and pumps, because the risks are very high. But if you want to try your hand at this, I recommend starting with a small amount and using crypto bots to help automate the process. Until next time and new videos at botcryptotrade.com
