Introduction
This guide explains what a pump and dump scheme is, how it works, and how to make money from it.
What is a pump and dump scheme
A pump and dump pattern is a term used to describe a type of coin that rises quickly and then falls quickly. Due to the large number of participants, those who bought before everyone else have the opportunity to make quick and big profits. For example, you bought for $1000, the coin has risen sharply in price by 500%. You sell on the growth of the coin and get $4500.
However, no one can predict which coin is preparing for a sharp increase. It usually goes like this:
1. People buy back a large amount of coins from the market while the coin is moving sideways.
2. When the community has accumulated a large number of coins, a command is given to buy out the remaining coins in the trading glass.
The coin flies to the moon, then those who bought it first sell coins at the peak of the price.
Not many communities are trustworthy. Some telegram communities sell empty VIPs. These telegram channels copy the messages of other channels, posing as the organizers of the pumps, which is a hoax. Because of this, the trust of crypto participants is lost.
Always check if the organizer is actually conducting the cryptopump or not.
How to make money on a crypto pump?
To buy a coin earlier and get a profit, you need to trust your organizer. If you have been following the pumps for a long time, then you can safely buy VIP access.
No one will provide information about the pump for free. Free participation in the pump does not guarantee you a profit.
However, if you buy a VIP, then you will redeem the coin from the market along with the organizer. Thus, together with the community, you will accumulate enough coins for the explosive growth of the coin.
Always check if the organizer is actually conducting the cryptopump or not.
Participation in the pump remains a profitable business to this day.
