What is Pump and Dump? Pump and Dump identification markers

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2021-03-22 23:22:32

Cheating Pump and Dump on electronic exchanges is quite common and is usually divided into 2 cycles. First, the sharks (who have a large capital to manipulate the market) find ways to pump altcoins to boost the market by purchasing cheap altcoins to a certain amount, ready to “dump”. To find out What is Pump and Dump? How to recognize Pump and Dump signs? Find out with CHK:

What is Pump and Dump?

Pump and Dump is a trader’s calling for the action of blowing a certain coin up high (PUMP) and then continuously selling, pushing the market into a state of “oversold” (sellers exceed buyers), leading to a wave of selling. from retail investors to the level of coin depreciation continuously and the price of a catastrophic drop (DUMP) was lower than before the pump.

This is essentially illegal in the digital currency market, but the authorities cannot intervene.

Cheats Pump and Dump on electronic exchanges is quite common and is usually divided into 2 cycles. First, the sharks (who have a large capital to manipulate the market) find ways to pump altcoins to boost the market by purchasing cheap altcoins to a certain amount, ready to “dump”. To do this, they have to spread good rumors about the coins they have gathered. After the rumors spread, the volume and value of altcoins will increase sharply. When the price of Altcoin reaches its peak, “sharks” will simultaneously “discharge” that means selling Altcoin even dumping. causing serious market indentation.

How to know Pump and Dump correctly and effectively

It is not difficult to recognize the characteristics of a Pump and Dump. The following image specifically describes the Pump and Dump process:

How to know Pump and Dump accurately and effectively

First the sharks are Pump push the coin up, and proceed to spread good rumors about this coin.

+ Then “Pumper“Is that you guys are buying.

+ When reaching the top of the shark will discharge, that is the 3rd arrow from left to right.

Once the shark has safely pulled out, panic begins, dumping takes place, the coin drops to the bottom of the market, we finally have to sell at the bottom called “cut loss“.

The basic brand oils to identify Pump and Dump:

– Initial stage: prices decrease and increase very slightly

– There are different accounts on forums and chatboxes discussing the coin’s upward trend in value to create rumors.

When Altcoins reach a point, everyone will sell, but not at the same time. That is the signal for an ongoing dumping process.

The fatter sharks are even fatter, but to do that, they need a great deal of capital and knowledge. However, the fact that sharks get fatter does not mean that the small fish will be smaller. If you anticipate the Pump and Dump processes, that will make you profitable if not through greed. If you are late and A˜ltcoin has been pumped in the early stage, you will make a profit but the risk is higher than the profit, so consider carefully before making your decision.

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