Any trader, even a beginner, has heard of the Pump & Dump scheme. Today we will tell you how to make money on pumping.
Pump- is an artificial pumping of a cryptocurrency in order to raise interest in the growth of an asset for further sale at a high price.
Pumpers perfectly manipulate traders in the market, raising the price of the chosen cryptocurrency, creating excitement in order to be able to profitably sell their assets.
Let’s analyze this situation in simple language. Pamper buys n-number of coins, which cost $ 1. If the coin is not in demand, this process will raise its value. At the same time, a pumper uses additional tools to draw attention to the coin, for example, for example campaigning for a purchase or various news feeds.
The more investors believe in the promising future of the asset and buy them, the higher the price will rise. This means that the profit of the pump will increase, and at the right time, it will provoke a rate falling by selling its previously purchased coins.
As a rule, pampers choose long-forgotten assets, but they are confidently trying to break through the market.
Or they choose fledging coins with an interesting idea. Since they are just about to enter the market, the pumper is getting a wave of great news feeds.
But such traders do not run the risk of artificially pumping Bitcoin, Ethereum, and other popular coins, since this will require several million dollars to be invested.
The look at pumping is divided into two opinions: someone bypasses such manipulations because of the risk of losing, while others see an excellent opportunity to increase their income.
There are pump organizations or chats in which all participants of the process gather, and after a while, they receive instructions for action.
- The time to start pumping is announced.
- Participants find out the name of the cryptocurrency and receive a link to instantly purchase this asset.
- Members of the organization receive a list of chats, headlines of news stories that they should distribute.
- For a certain period of time, popularization of the coin takes place.
Pumping is a very risky way to make money and can only be profitable for experienced traders. Therefore, be careful and judicious when choosing this way of making money.
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