Dear Steemians,
today I wanna tell you something about these pump and dump groups. I know this is nothing new to some of you but they are kinda overtaking social media currently. I came up writing this article due to Charlie Lees' latest tweet:
I'm tired of all these "join this pump group" replies. That's an instant block from me. I wish there's a way to automatically block these posts.
> Charlie Lee [LTC] (@SatoshiLite) 18. Januar 2018
Failed pump & dump
Don't join these groups, you'll lose!
The only one who wins is the leader of the group and probably a group of chosen people. Why? Therefore, you'll have to know how these pump'n'dump group works:
- The admin of the group tells you the exchange, the time and the currency you need to trade (eg BTC), but of course not which coin you should by.
- When the time has come he's gonna tell you the coin to buy, asap
- Then you should hold the coin for at least 30 mins that other traders (traders not in the group) join the pump.
- Then your group is selling step by step the coins to dump it not as hard and you gonna make a looooot of money. The tell you up to 1000 %. Yea sure....
Beside any moral conflicts I would have doing such stuff it's not gonna work.
- We're human and what happens is that some members don't keep the rules. So you probably buying coins from other members before other traders even join the pump.
- The second reason is that you can't buy in at the lowest point, unless you wrote a bot which does that for you. You don't know how to programm a bot? You're out! Because you buy in too late/high which makes you win nearly zero, it's even more likely you loose money if the first point is true.
- The only one that wins is the admin and people he told the coin before you know it. They can buy in for the cheapest price and they sell it to their members while they think "Hey we're gonna pump it, bro". They already locked in their gains when you should wait 30 mins.
Stay careful! Bitconnect told us already: Don't catch the quick money.
Disclaimer: I never joined any group. My knowledge comes from other articles and because I turned on my brain.
Hello Steemit,
my name is Chris and I'm from Germany.
I study computer science and I love cryptocurrencies.
My goal is to deliver you well-researched articles.
Most of my content is bilingual 🇺🇸🇩🇪
