Warning for newbie- Don't fall into pump and dump

jseverson

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Quote from: tranthidung on July 01, 2019, 11:13:43 AM

OP is wrong. Altcoins only started to rise in BTC pairs when bitcoin drops back, that is what we have seen last two or three days. Since the bull run of bitcoin from April, altcoins fell in their bitcoin pairs. Now, it is time for altcoins to rally in BTC pairs. Nevertheless, I am not sure how far they can recover in coming days. In reality, they all deeply fell from their latest peaks in late of April and early of May.

Alt rallies are fine, but I think OP was specifically talking about coins with explosive growth, which could be a lot more tempting to newbies. They could be getting in between pump and dump schemes, which they'll almost certainly lose money from.

pooya87

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Quote from: Little Mouse on July 01, 2019, 01:52:15 AM

Quote

actually the volume of the pump and dump coins increases drastically, that is why they are being "pumped". having lower volume is a benefit that makes pumping that altcoin easier otherwise it is not needed.

yes but initially it remains low, like $50k or so and suddenly it started to increase.

that is because of how pump and dumps work. basically there are pumpers who initially start buying that shitcoin they plan on pumping prior to letting their sheep know about it. so there is first a small volume spike. then as their purchases causes the price rise they tell their sheep to buy it and that is when the volume spikes bigger. then as they dump on the sheep the volume remains high until the cycle is complete.

the volume i was talking about was the total daily volume that the coin normally has which also indicates how packed is its order book. lower volume means less packed order book and that means easier manipulation aka pumps.

kheebl

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I'm a newbie and I just fell for it 2 times, never again. luckily each time was only around $35 but I definitely learned my lesson on pump and dumps.

tranthidung

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Farewell o_e_l_e_o

OP is wrong. Altcoins only started to rise in BTC pairs when bitcoin drops back, that is what we have seen last two or three days. Since the bull run of bitcoin from April, altcoins fell in their bitcoin pairs. Now, it is time for altcoins to rally in BTC pairs. Nevertheless, I am not sure how far they can recover in coming days. In reality, they all deeply fell from their latest peaks in late of April and early of May.

bitmover

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Quote from: Krsps on July 01, 2019, 12:43:46 AM

Do you have any tips on how you go about finding a good altcoin to invest in short term?

Well, take a look at the project whitepaper and at the people working on it.
The problem is that most of the projects out there are poorly executed or are even scam..

Little Mouse

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Quote from: pooya87 on June 30, 2019, 10:01:19 PM

Quote from: Little Mouse on June 30, 2019, 07:40:42 AM

With the current pump of BTC,

you can't start a warning about pump and dumps in altcoins while at the same time you call bitcoin a "pump"!
so basically you are also calling bitcoin a pump and dump which is obviously false.

My bad, I meant the price increase of bitcoin and that's why I used the word pump. I will edit it now.

Quote

actually the volume of the pump and dump coins increases drastically, that is why they are being "pumped". having lower volume is a benefit that makes pumping that altcoin easier otherwise it is not needed.

yes but initially it remains low, like $50k or so and suddenly it started to increase.

Kakmakr

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The Bitcoin rally did not trigger an Alt coin pump, but actually the opposite happened. Most Alt coin prices dropped slightly because some Alt coin traders sold some Alt coins to buy more bitcoins during the Bitcoin bull market.

Yes, there were some exceptions and it is always sound advise to warn people not to get over exited about a slight increase in the price. Take some profits to get to a ROI scenario, when the price is high and reduce your long-term risk. Tongue

"Ride the wave, do not swim against it" Grin

Krsps

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Quote from: bitmover on June 30, 2019, 05:07:39 PM

In the end, the important is to accumulate BTC. You can use those alts pumps to accumulate more BTC.
Those projects are far more risky and will probably be gone in a few years. Taking profits now may be a good idea, and converting it to btc.

Do you have any tips on how you go about finding a good altcoin to invest in short term?

jseverson

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Quote from: bitmover on June 30, 2019, 05:07:39 PM

In the end, the important is to accumulate BTC. You can use those alts pumps to accumulate more BTC.
Those projects are far more risky and will probably be gone in a few years. Taking profits now may be a good idea, and converting it to btc.

They might not even get the chance to take out their profit. Plenty of these pumps and dumps are executed in a matter of hours. By the time you see the price peak, it would probably already be too late to sell as it's going to go down rapidly, possibly before your sell order is executed.

If you're talking about regular alts that are experiencing some growth and not alts that are being, targeted by dedicated pump and dump groups, then yeah, it's probably a good idea to dump them for BTC now, and reenter (if you truly care about it) once the alt market stops riding along the BTC waves.

Johnzky

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Quote from: Little Mouse on June 30, 2019, 07:40:42 AM

With the current pump of BTC, now perhaps a lot of altcoin will start to gain. You may see some gaining 100% a day even, or even more. Don't fall into this. Most of the time those coin will be pump and dump coin. Just check the volume of this coin. Those will be lower.
If the volume is lower, a single person can manipulate the price which may seem to you real but it's not.
Do proper analysis before investing.

I have seen some of these but upon checking I found out that they are just being pump but fake volumes,that’s why if you are greed and ride into their tricks then for sure you’re a victim already.thanks to this information Op many will be saved by this and also noobs and greedy people

pooya87

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Quote from: Little Mouse on June 30, 2019, 07:40:42 AM

With the current pump of BTC,

you can't start a warning about pump and dumps in altcoins while at the same time you call bitcoin a "pump"!
so basically you are also calling bitcoin a pump and dump which is obviously false.

Quote from: Little Mouse on June 30, 2019, 07:40:42 AM

a lot of altcoin will start to gain. You may see some gaining 100% a day even, or even more.

the altcoin pumps don't have to take place in a single day to be considered a pump. some pumps take longer specially when the coin has a bigger market (like the top 10 altcoins).

Quote from: Little Mouse on June 30, 2019, 07:40:42 AM

Just check the volume of this coin. Those will be lower.
If the volume is lower, a single person can manipulate the price which may seem to you real but it's not.

actually the volume of the pump and dump coins increases drastically, that is why they are being "pumped". having lower volume is a benefit that makes pumping that altcoin easier otherwise it is not needed.

joniboini

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Quote from: bitmover on June 30, 2019, 05:07:39 PM

In the end, the important is to accumulate BTC. You can use those alts pumps to accumulate more BTC.

I still remember November '17 where whatever alts that you pick can went up more than 100% in just a matter of hours. That's definitely the perfect time to get more BTC. If such season comes this year, then I'll be more than happy to hold lots of alts before the peak happens.

Well, hopefully I don't exit at the wrong time.

bitmover

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bitcoindata.science

In the end, the important is to accumulate BTC. You can use those alts pumps to accumulate more BTC.
Those projects are far more risky and will probably be gone in a few years. Taking profits now may be a good idea, and converting it to btc.

Little Mouse

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Activity: 2156

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Marketing Campaign Manager |Telegram ID- @LT_Mouse

With the current price increase of BTC, now perhaps a lot of altcoin will start to gain. You may see some gaining 100% a day even, or even more. Don't fall into this. Most of the time those coin will be pump and dump coin. Just check the volume of this coin. Those will be lower.
If the volume is lower, a single person can manipulate the price which may seem to you real but it's not.
Do proper analysis before investing.

Topic: Warning for newbie- Don't fall into pump and dump (Read 305 times)