We have seen many times pumping of some coins or tokens which are sitting stable for longer time suddenly peak up and reaches its ATH value within few hours. In this post, I would like to share information about what is crypto pumping, how crypto pumping happens & how to collect news about crypto pumping so that we can take advantage & generate maximum profit out of crypto pumping with trading.
What is Cryptocurrency Pumping?a) Artificial pumping:- Basically Crypro pumping can be done by the big community of traders in which big traders buy the coin first which is to be pumped before creating fake buzz. After Creating fake buzz they decide the time & announced to the world about coins pumping through their telegram community which have more than 1.5 lacs or 2.5 lacs members, for example, buy "X" coin on BINANCE at 8 PM. After the announcement, these telegram community members buy that "X" coins and we see a sudden spike in that coin in few hours & we see the pump of the coin. In this duration of pumping when that coin reaches its highest peak, big traders start to sale that coin and in few hours we can observe the drastic drop in that coin. This is called artificial pump and dump of coins in which some traders make the huge profit and some make a huge loss. These artificial pumps can be observed generally in the coins which are not good in terms of their technology or not that much famous.
Example : The champion (TCC)
b) Natural Pumping:- Natural pump of the coin takes the shape according to the news and trend on good coins for example there is a news on the development of coins like testnet, mainnet, Node integration or partnerships announcement etc. We can take the big example of VERGECURRENCY which announced in April 2018 about the upcoming partnership on their twitter account. Their community is big everyone was speculating that verge will make the partnership with amazon or Flipkart or apple. In this period Verge reached 500 Satoshi to 1300 Satoshi which means double profit. When they revealed their partnership with pornhub, price of the verge gone down again around 600 Satoshi.
from this example, we can learn people who got information first and took action to invest in VERGE would have really made profit. Take another example of TRON & EOS Mainnet Launch, peoples who have grabbed information first and took advantage of this news and invested made the profit.
Now the point is How to collect these information & upcoming Trends First???1) Follow Twitter profile of all top 100 to 200 top coins listed on CMC, in this way whenever they will announced any upcoming news like partnership, development, testnet, mainnet & forks you will be the fast to get those news and get time to take action.
2) Follow Coinmarketcal, CoinMarketCal.com is a free and collaborative economic calendar presenting all the upcoming events in the world of cryptomonies. With these site you can track all important events.
3) Follow big websites related to cryptocurrency Like Cointelegraph, bitcoinist, techbullion, bitcoin.com etc and activate push notification,these websites also gives useful news about market trends.
From these post we can learn how to collect the trend and take advantage of these trends. Also keep in mind whenever you enter in market on basis of these trends and invest on particular project lets say example of mainnet, buy coins and sale on right time like 1 week before mainnet date or when you feel you have made sufficient profit. Don't wait till end result of these trend because we cannot predict any coins peak it can go again up after mainnet or go down just make your profit at right time & be satiesfied with whatever profit you will make with these trends.
Great article mate, though i will say that while your advice on how to identify trends for pumps and hype on coins is pretty good, i think more people will always lose money on these sort of pumps when it inevitably dumps, concurrently i would advice that the best way to profit from these sort of crypto pumps is to simply stay away from it.
