Surely many people who begin to get acquainted with the world of cryptocurrencies have at least once heard about pump groups. And some even had the idea to participate in these pumps to make money on a sharp jump in prices.
I will talk about this method of earning and why you should not be led to it but first things first.
Pump – artificially increasing the price of an asset by purchasing it in large quantities in the short term.
The main goal of diapers is to buy at a low price and sell at a higher price. Sounds good, huh?
Some traders manage to earn from such a scheme from 100% and higher in a fairly short period of time. However, it should be understood that most traders will be left with nothing, and this is at best, and at worst, they will lose a significant part of their funds.
Most pumps are under one carbon copy:
In the telegram, you can find many groups in which at a certain hour the exchange and the coin to be bought are reported. The meaning of this is that at the same time a large number of people buy a coin, thereby significantly increasing its rate, since most coins with little capitalization and no daily turnover are remembered. Actions occur mainly on these exchanges:
At the same time, coins are being promoted in various chats in order to attract even more attention to grief traders. At the same time, some strange news is used as arguments (well, if they are real at all), thanks to which the coin rate will grow and grow.
Unfortunately, perpetual growth cannot continue, and sooner or later it will fall, and this happens in a rather short period of time, so most people will not have anything.
Who makes money on it
It is not surprising that basically only owners of pump groups and a small number of lucky people earn on this.
Owners of these groups are generally a separate topic for conversation. Before they publish an allegedly “random” coin, they purchase it, trying not to get too fussed with the appreciation. And then everything happens according to the scheme described above.
And as soon as the new influx of freebie lovers ends, the organizers of the pump simply begin to drain all their coins, dumping the course. The result is a profit for them, and the rest run anew to replenish their accounts, in order to fall into this bait again.
Is it possible to get into the ranks of those lucky ones who will make money on this? The answer is yes. But for this, you need to either be a winner in life or use special bots that track non-standard operations with coins. Based on my personal experience, I can say that it is extremely difficult and time-consuming, so I personally have not been doing this for a long time.
As you understand, making money on this method is very difficult and risky. Basically, only the organizers of this event are profitable, so I strongly advise against this. After all, it’s better not to earn money than to end up in a fat minus.