How Pump and Dump Schemes Work .:. And why you should avoid them...

in LeoFinance2 months ago (edited)

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I have recorded this video last month, but I didn't have time to edit and publish it... Also, I was a bit sick around NY Eve and after, so not really on the computer... Anyway, the video is for educational purposes, it's not time-relevant, and I hope that you will learn something from my personal experience in pump and dump... As always, I have said my personal opinion about this topic in this video, and it may be (completely) different than yours, but that's just my opinion... You can share yours in the comment section... ;)

Before joining this blockchain, I was kind-of "searching myself" in different spheres of crypto... While it was possible, I was going to Blockchain conferences and read a lot about cryptocurrencies, and trading in general... Also, I had experience with FOREX trading from my past, so jumping in crypto-trading wasn't my first encounter with charts, candles, indicators, etc...

I don't know how, I have bumped on 1-2 Pump&Dump groups and start to poke around them... It was in a time when most of the coins went up, and there were buyers and sellers for any shitcoin out there... And there were a lot of them...

I have tried to explain more about these market manipulations in the video, so if you are interested in how they work, and my personal experience with them, check it out by clicking on that PLAY button...

Thank you for your valuable time,

~ph~

Pumps and Dumps Explained.jpg


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Growing Up by Scott Buckley https://soundcloud.com/scottbuckley
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Thanks for sharing your experience with such "projects". When I look at this construct it makes me believe that the only person winning in this process is the one who decides what to pump/dump. I honestly doubt that he wouldn't use this knowledge to buy beforehand and dump first...

It depends on the group of people (and a herd) who is running... If the group is bigger then maybe someone else can earn something besides the person who is "running the show"... It depends on the number of people, and of course, their deep pockets... But, in the end, someone has to pay the price...

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When a small coin in volume goes up without any specific reason, it is pumped to dump when others are buying fear of missing out. It is happening over and over. And it will happen again. I think if you want to trade cryptocurrency, it is better to trade coin that has big volume, strong background, and use case. It will be harder to manipulate. So what do you think, @ph1102?

Well, it is like you said... I'm not a big fan of "unknown" coins and I avoid to trade them, but I do like to trade some big coins, but on small exchanges... just for fun... :)
Big volume has sense if you are trading with big amounts, but if you trade with smaller amounts, you can try on smaller exchanges, with less volume, as the spread is usually wider, and possible gains bigger... ;)

For example, when steem-hive split happened, I made some nice amount of HIVE trading with the steem/btc and the hive/btc pair on Ionomy...

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Oh! they work openly without shame. I used to trade in some small exchange and they keep bugging. Some people do not understand and really buy their shit too.

Well, I believe that it's happening on a larger scale also, with a lot more money involved with bigger coins, but we can't "recognize" it... When big boys are playing Monopoly... :)

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Pump and dump seems working on low marketcap coins so a big whale can control and monopolize the price.

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Yeah, it works like that... But, it will not work if there is no sheep that is slaughtered... There is always a possibility that a big whale lose money, so, they are always searching for fresh blood to feed the whale :)

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Ok not familiar of course seems vital

I'm glad if you learned something new... Thanks for the comment!

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