How pump and dump groups work and why you should stay away from them

Cryptocurrency News and Public Mining Pools

How pump and dump groups work and why you should stay away from them

People frequently warn others about pump and dump groups over here but if you are a newbie, you may not know and end up losing a lot of money. So please consider this for your own sake.

You will almost always lose money with these scams. The only people who make money from PnDs are the owners of these groups. They slowly accumulate a given coin days/weeks before a "pump announcement." By the time they make the pump announcement, they have already bought as much as they can and have set limit sell orders to dump all of that to people rushing in.

You may think that you can still turn a profit, by being really fast and buying at the very start, and selling immediately. Unfortunately that doesn't work too. There are tens of thousands of people trying to do the same thing. The whole pump phase lasts a couple of seconds, you will not be able to buy fast enough. By the time you type in the ticker, it's too late. Even people using bots lose money.

Don't believe in the BS these people spew in the discord chats, about pumps being several minutes long, whales "supporting the price" or whatever. It's all bullshit designed to part you from your money. They will even post fake "appreciation messages" and what not.

I know the idea of being in a pump and dump group may be really enticing. After all, who wouldn't want to be "in the know" and make basically risk free money, doubling, tripling, even quadrupling their money in a matter of seconds? That's how they lure people in. Unfortunately, it's just too good to be true. Nobody is going to give you free money.

So stay away. Doing literally anything else with your money will be more beneficial. You may invest for the long term and HODL, or you may gamble on moonshots and what not. Just don't fall for obvious scams.

submitted by /u/whocaresrighttt
[link] [comments]