Hello beautiful steemit,to all crypto traders the euphoria, excitement and pageantry trading the various coins is profiting,overwhelming and poses a great risk to all traders( newbies ,novice and unsuspecting and even vulnerable professionals)
Like the stock market,especially the penny stocks which are easily manipulated by greedy investors,so also cryptocurrencies especially the cheap coins which sees a sporadic rise in price at the onset,peaks-flattens and then BOOM!!!,behold a dump, prices all of a sudden starts crashing, dropping like a stone hitting the canvass .
Pump and dump scams involve two groups of people. First there are players who artificially increase the price of a coin by promoting or endorsing it. They’ve spent several minutes, hours or even days buying up cheap coins, and when they are ready to dump them, they build up the buzz.
As buzz around the coin gains momentum, trading volume increase and the coins value goes up. You are both the pump and dumper. Once the coin hits a desired price the players sell all their coins, and people begin to panic sell, dumping their coins on the market and sending the price plummeting.
Some so called smart traders are able to spot a coin that’s being prepped for a pump and dump,they tend to purchase cheap,grabing up some coins before the pump starts,you can make money if you’re not greedy. It shouldn’t be hard to make decent profit in five minutes if you’ve spotted the signs early.
If you come late to the party and the coin has already begun being pumped, but still in the early stages, you still can make a profit. Your risk will be greater and your profit smaller, but if your enter and exit the market fast you should be able to expect a modest return.
The problem is it's not that easy to spot a pump and dump at the early stages to make a profit.It's easy to identify one on a chart after it has happened. You will see the graph moving up and down within 3-5% range all day. This happens with all coins and is part of normal volatility. So you can never guess at what stage a pump is just beginning.
It's also never easy to guess the top since the pumper can choose to dump right after you get in and crash the price while you hoped for another 50% increase. It's a dangerous game and it's best to stay clear of low volume coins as you're at high risk of running out of buyers before you can sell your position during a crash.
Alternatively another way to avoid a pump and dump is buying coins that offer privacy like black coin, dash, monero, stealth, bytecoin, and ethical coins like cure coin, fold coin, grid coin and hold long term. Buy the top ten altcoins by market cap too
Furthermore,another ways to keep track and be informed is through - private chart rooms and communities,monitoring the exchanges,the bottleneck here is -there are hundreds of trading pairs on dozen exchanges, keeping track of them all is impossible. WayS to stay informed about future market action is through experts’ opinions. Bitcoin blogs, including The Merkle, often publish price analysis and write informational pieces that can help traders make more informed decisions regarding their positions. Another great resource is Tradingview, which has a plethora of charts with explanations which help rationalize altcoin markets.
Finally sitting in front of your computer screen with a dozen windows open trying to predict the next pump could be cumbersome,thus bot such cryptoping will do the work by informing you of potential pumps.
Using CryptoPing is easy, simply download the Telegram app on your phone, link it with your account, and you are set to go. The bot tracks every single trading pair on the top 3 most popular altcoin exchanges (Bittrex, Poloniex, and Cryptopia). When it finds an anomaly, it will send a notification to your phone letting you know of the change.
At this point your comments,suggestions are welcome and well appreciated.You can also resteem let us get the post to greater audience
Interesting. Resteemed and Upvoted.
The only rule I can think of when talking about investments is selling your possessions at the right time and not over holding, the first thing I care about is getting my initial investment back, and after that even if I get left with 30% or 40% I can hold those as long as I want because I wont lose money at this point.
Smart money management and contentment is key,most traders also loose money due to greed,thanks @morpheus for your contribution
Some valuable thoughts in your article. I agree that there is quite a bit of euphoria. We are still in the early stages and a lot of the coins that are being pushed now are not going to be around in the future. However, those that still are around 10 to 15 years from now will have exploded in value in ways we cannot fully grasp yet.
Exactly you are right on point,bitcoin is an example that has gone through the rough times and still standing.Investors and traders need to be extra vigilant and well informed to be able to spot those malnurished and epileptic coins Thanks @silvergold for your time
awsome post bro
Thank bro @joseaka,greatful heart
awsome
Good one bro thanks
Good info bro
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