At one point in time, when you entered the cryptocurrency market, you would have hoped that this would be a stairwell for you to get rich instantly without much effort.
If you are not one of those people who daydreamed about getting rich instantaneously through investing in crypto trading, reasoned about what can go wrong in this market, and acted accordingly, then good for you.
On the other hand, if you were one of those who thought about the first part, which is getting rich without making much effort, then we are here to tell you that this is different from how you are supposed to get attached to the cryptocurrency world.
While you think our words do not sound encouraging, believe we are not here as financial advisors; we are just here to give you the best knowledge regarding the cryptocurrency world.
To continue that work, we are going to discuss another topic that has been on the minds of many crypto newbies who are wondering whether or not this will prove beneficial to them in the short term, and that is joining crypto pump groups.
Understanding Crypto Pumps
Crypto pumps are groups where people band together at a predetermined time and with a strategy to buy a particular cryptocurrency.
The idea behind this scheme is that with significant buying action, they can manipulate the cryptocurrency’s price to higher levels or to the levels they desire the currency to reach to make significant profits.
The sudden price surge increases demand, attracting new buyers who see this as a signal to buy that crypto. The earlier you get into action, the higher the profit margin you can accumulate.
There are groups dedicated to this activity where they sell you these signals so that you can take some piece of the action. While this sounds like a lucrative venture, it is more complex than it looks.
These pump groups can act as potential landmines for you and prove to be risky or financially draining venues, which you must consider before joining.
There are certain eye-opening, rather dangerous facts that you should know about:
- Pump and dump schemes: Individuals who don’t have the required technical, financial, or even basic knowledge of the understanding of the crypto market might not know that the people who create such groups orchestrate pumps only to dump holdings at the peak. The latecomers to this party hoping to take some profits for themselves might have yet to see it transpire. Therefore, you should be very careful when considering such action for yourself.
- High volatility: We all know cryptocurrency is a very volatile market, and these pump-and-dump schemes can cause even more volatility than you would be comfortable handling. If you are not careful, you will be susceptible to losing your initial investment amount in the blink of an eye before taking corrective measures to avoid such losses.
- Technical glitches and platform risks: Pump coordination relies on specific platforms and tools. These platforms can experience technical glitches or even be shut down by authorities, throwing your carefully timed plan into disarray.
While the promise of crypto pumps may seem like an irresistible shortcut to wealth, it’s crucial to approach them with cautious realism. Understanding the inherent risks and navigating the complex landscape requires knowledge and discipline. Next, we will explore how to identify promising pump targets, join the movement with safeguards, and navigate the often-turbulent aftermath.
Identifying Crypto Pumps Targets
If you are still planning to go ahead with your target of joining a crypto pump group, here are a few pointers you should consider when deciding what coin you should target.
Be aware that you need the correct set of analysis tools, a keen eye for observation, and, last but not least, some luck to make the right choice for yourself.
Here are some factors to consider when searching for your pump prospect:
Low Market Cap: Start with a coin with a lower market cap, preferably something under $100 million, as they are more susceptible to a higher price change because you don’t need to inject a more significant volume into the market to make that happen.
High liquidity: look for a coin with high liquidity, which means it has a good trade volume on different crypto exchanges. A coin with high liquidity means a smooth buying and selling process.
Active Community: You should search for a community that is constantly active on different social platforms like Telegram, Discord, or Reddit and has a significant presence for a crypto pump group. These are the places where you can gain a profitable signal.
Technical Potential: While volatility is a desirable target for crypto pump groups, you should still look for a coin with a solid technical team behind it.
What we mean by this is that the crypto’s underlying technology is robust, has real-world use cases, and offers innovative solutions, as they will act as a safety net for you in case something goes wrong.
Current Price Action: A coin already on an upward trajectory can provide you with a perfect platform to make some financial gains. Look for coins experiencing steady growth or showing signs of accumulation before your planned pump. Avoid coins constantly on a downward trajectory, as they can be a precarious option for you.
Research and Verification: Be sure to follow the herd. Always research the coin before committing, checking its whitepaper, team background, and community sentiment. Watch out for red flags like pump-and-dump warnings, lack of transparency, or excessive hype.
Remember, finding the right pump target is a delicate balance between potential and risk. Use these factors as a compass, not a map, and always conduct your due diligence before diving in.
Joining the Crypto Pumps
You can explore different platforms if you want to join crypto pump groups.
Telegram Groups: Telegram’s encrypted chat groups have become the hub for crypto pump and dump groups. These groups dedicated to such activities offer signals, coordinated buying time, and real-time price updates. However, you must exercise extreme caution as you are likely to fall into a trap by joining a scam group.
Discord Servers: Like Telegram, Discord servers provide a structured environment for pump activities, with the added benefit of voice communication for more thorough coordination. However, navigating private servers can be challenging, and there is an inherent risk of infiltration by scammers who are always looking for targets from whom they can steal money.
Dedicated Pump Websites: Some websites exclusively cater to pump coordination, offering tools such as buy walls, countdown timers, and community chat. While these platforms offer convenience, it’s essential to proceed cautiously, as centralized platforms are susceptible to technical glitches and potential manipulation by site owners.
Social Media Channels: Social media channels, including Twitter and Reddit, also serve as arenas for pump activities. Crypto influencers often initiate pumps with their posts, while subreddit communities rally behind chosen coins. Despite the vast reach of these platforms, the need for more control and rampant misinformation make coordinated action challenging.
When selecting a platform, consider your risk tolerance, technical skills, and preferred pump style. Telegram and Discord provide faster communication and dedicated communities but require vigilance against scams. Websites offer convenience but raise trust concerns. Social media platforms are accessible but chaotic. Ultimately, diversify your channels, adhere to reputable groups, and avoid investing more than you can afford to lose.
Executing the Crypto Pumps
Once you have identified the respective coin and selected the platform from which you want to receive the pump signals, your next step would be to execute your plan.
You need to be highly precise and avoid any misstep when executing your pump plan because a lack of coordination can harm you as you might be prone to losing all your investment amounts.
The timing of this all plays a pivotal role in distinguishing you from others who wish to carry out such plans. Stepping into the pump activity at the right time can soar your profits, while mistiming your step can create many problems.
Factors such as market conditions, competitor pumps, and overall trading activity for the chosen coin must be carefully considered. The execution of a well-timed pump can ride on an existing upward trend or initiate a new one, while a poorly timed effort may fizzle out unnoticed.
Different strategies come into play when you are planning to execute a pump. One strategy is the use of Buy Walls. This involves executing coordinated large purchase orders at specific price points. The intention is to create buying pressure by displaying a substantial volume of buy orders, enticing other traders to join in, and causing a surge in the cryptocurrency’s price.
Another strategy is Flash Pumps, in which the participants rapidly buy and sell within a short timeframe. The goal is to generate excitement and attract new investors quickly, driving up the price of the targeted cryptocurrency.
To facilitate these strategies, effective communication within the chosen platform is crucial. This includes using specific channels for updates on timing, adjustments to the overall strategy, and providing real-time information about the cryptocurrency’s price. Coordination and communication are critical elements in the execution of these pumps.
The Aftermath of Crypto Pumps
After a crypto pump, whether it went well or not, it’s time to think about what happened. If things go amazingly well and you profit, it’s important not to get too greedy.
Take your profits in steps according to your plan, and don’t put all your money back into risky crypto. Spread it across safer investments to be safer in the future. Celebrate your success, but be careful about your economic goals.
On the other hand, if things don’t go well and you lose money, it’s essential to learn from it. Figure out what went wrong, and try to avoid winning back your losses by investing more. You should adjust how much risk you’re willing to take.
No matter what happens, treat it as a lesson. Knowing more about the market, having a supportive community, and sticking to your plan are all important. Be wise in your future investments in the crypto world.
Warning
While crypto pumps sound like an exciting opportunity to earn a quick return on investment, most people who participate in such activities have often lost their investment.
If you are wondering how this happens, you should be aware of the fact that most operators of these pump-and-dump groups often acquire their positions before they notify the rest of the group members of their upcoming plans to pump a particular cryptocurrency.
This means that they will be in a better position to earn the most profits while you are just helping them reach their goal by following their actions a few steps behind. In the end, you won’t be able to make such profits as the guys who are leading you will make.
Secondly, you should note that while crypto pumps and dumps aren’t illegal in certain jurisdictions, they are considered a highly unethical activity that you should avoid at all costs. At the places where they are considered illegal, you are exposing yourself to the possibility of getting penalized or, even worse, facing legal consequences from relevant authorities.
Instead of finding shortcuts by joining such groups, it would be better for you to join groups that offer trading signals by sharing their technical analysis.
This would not only provide you with a perfect learning opportunity, but these groups have skilled personnel who are willing to share their knowledge with you, and it will help you in the long run when you become skilled enough to identify different market signals and make informed decisions without relying on anyone’s else analysis.
Note: This article is written to provide information regarding crypto pumps and dumps groups and not provide financial guidance. Be vigilant and conduct your research, or as we often say, do your due diligence. Always be on the lookout for scam activities, and don’t search for shortcuts to make quick money, as they can prove to be a financial pitfall.
