What Is a Cryptocurrency Pump or How Not to Waste All Your Money?

Bitcoin pump

There are a lot of methods of earning money at the cryptocurrency market, and they often differ depending on the size of the participant’s investment portfolio. Large investors can afford dishonest methods of increasing their own capital, for example, by creating an artificial demand for a certain asset. In professional terminology this is called pumping. In this article we will consider the mechanism of this process. We’ll tell you how to keep your assets safe and not fall into the trap of manipulators.

Contents:
(please, click the topic to scroll down to it)

  1. The concept of pumping
  2. Pumpers’ working methods
  3. How to recognize a pump and not lose your money?
  4. Conclusion

1. The concept of pumping

A cryptocurrency pump is the artificial inflation of its rate, carried out by buying a large number of coins, creating an agiotage among ordinary traders, while cryptocurrency dump is its unexpected sale at a peak of value and the rate collapse. This is an “excellent” option for earning for single large investors or a group of medium traders.

Manipulators often choose smaller and little-known coins with low market capitalization for these purposes. Bitcoin or any other coin from the top-10 can only be pumped by multimillionaires.

Pumps rarely happen during the general growing trend, since the main task of a pumper is to purchase assets at the lowest prices.

Ideal conditions for manipulation:

  • a pretty new currency with a good news background and a good idea, which you can use;
  • the coin value is below average;
  • global downstream at the market.

2. Pumpers’ working methods

Manipulators who earn on cryptocurrency pumps get as creative as humanly possible in order for their trick to work. The ways which they use to achieve artificial growth of an asset price are quite numerous. In our article we will consider only the main and the most common ones:

  • One-time contribution. An asset rate skyrockets in a short period of time. Depending on the capitalization and the amount of the investment, this index can vary from 40% to 300%.
  • Gradual “pumping” of coins. In this case, besides buying coins, manipulators create a positive news background. This is necessary to ensure that as many investors as possible believe in the natural growth. Long-term pumps can last several months, after that pumpers quickly sell off their assets, leaving investors with nothing.
  • Using trading robots. This method of manipulation is very similar to the first one, but it is implemented through the use of special software. It is the shortest one in terms of time, as the market can quickly track the similarity of transactions. Anyway, the end of a pump is always the same, and it is not beneficial for ordinary investors.

3. How to recognize a pump and not lose your money?

How should ordinary investors who want to protect their portfolios behave? After all, information about pumps is not available in free access. If you don’t want to fall into the bait of manipulators, read the following list of recommendations:

  • Have a cold mind and do not be guided by emotions. Always be skeptical of the sharp rate jumps. If there is no adequate fundamental reason for this, it is most likely a pampus.
  • Do not count on “long-term” during the rapid growth. Not only organizers can earn on pumps, but for this you need to monitor the dynamics of price changes carefully and not try to catch the last train. If unnatural growth lasts for more than a week, do not buy this coin.
  • Do not use bots for trading, as they are not able to adjust to manipulators.
  • Do not be greedy. It is better to earn 50% than to wait and lose 80%.
  • Learn to filter information, as not all sources can be trusted.

4. Conclusion

A cryptocurrency pump is a pretty frequent phenomenon at the market. It implies an artificial increase in the price of an asset, which is caused by the action of one person or a group of people with the aim of quick enrichment. If you want to earn at the cryptocurrency market, you must learn to recognize such phenomena.

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Akon: Nobody Knows What Cryptocurrency Is, But It Doesn’t Mean You Should Not Invest Into It

akon talks crypto

The famous American rapper Akon, the author of such hits as Smack That and Right Now, seems to be very interested in cryptocurrencies. First, he announced the launch of his own digital coin – Akoin – which is supposed to be the currency of a crypto city in Africa.

While the details of his ambitious plan have not yet been revealed, Akon keeps researching the possibilities of the crypto world. Recently he gave an interview where he discussed the financial situation in Africa and his vision on cryptocurrency.

When the interviewer said he did not quite what cryptocurrency was in the first place, Akon’s response was simple – “Nobody does.” The rapper actually finds digital assets very similar to regular company shares.

You know they’re going to yield an investment. You go there with your money because you know, these guys, in the next four, five or ten years, their projection said they are going to make triple what they are making now.” – he mentioned.

In the end, Akon said he would keep studying the subject and would do everything in his power to improve the difficult situation in Africa.

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Elon Musk Turned to the Creator of Dogecoin for Help in the Fight Against Twitter Scammers

musk needs help with crypto spammers

The CEO of Tesla Motors, entrepreneur and engineer Elon Musk published a message in his Twitter meant for the creator of the cryptocurrency Dogecoin Jackson Palmer with the request to invent a way to deal with crypto scammers on the social network.

A few minutes later, Musk received a response with an invitation to use a script that would resolve the issue with the scammers. Judging by the message of Dogecoin’s creator, Elon Musk used it.

https://twitter.com/ummjackson/status/1041577055970893824

We remind you that Elon Musk had to deal with Twitter fraudsters not once and not twice. Bots with offers to receive different cryptocurrencies for free were attacking Musk so much that he even started writing brilliant responses to them. Later, the social network management even began to block accounts containing the name of Elon Musk.

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McAfee Birthday Collection: Top-5 Eccentric Statements, Promises, Innovations and Scandals

john mcafee birthday compilation

The editorial board of The Coin Shark wishes happy birthday to the most unconventional crypto personality John McAfee and hopes he will thrive and please the crypto community for many more years.

For this occasion we decided to compile the loudest things that McAfee has said or done this year.

1. There is no doubt that the wildest promise of John McAfee remains his infamous claim about the price of Bitcoin in 2020. The interesting part is, of course, related to the physical tortures that McAfee is ready to face if his predictions turn out to be wrong.

2. Another loud claim of McAfee was his firm intention to run for presidency during the next election. Given the low levels of popularity that the current US President is coping with, we believe that anything might happen at this point. Politics aside, no doubt that the crypto world will be thrilled to have such a president.  

3. We could not leave out the epic with McAfee’s crypto wallet Bitfi. Was it really hacked? Was McAfee planning to give such a pricy award? We don’t know. However, what we do know is that the story brought a whole lot of attention to the wallet, so maybe it was an ultimate goal in the first place.

4. The CoinMarketCap should beware, because John McAfee is on its toes. His own site with market capitalization and cryptocurrency exchange rates is already functioning.

5. Last, but certainly not least comes the McAfee crypto challenge. Brilliant minds with innovative crypto solutions can join his team to improve and develop the crypto world together.

Anyway, even if John McAfee does not eat any parts of his body or loses the run for presidency, he will always remain one of the brightest stars of the crypto universe. Happy birthday, John!

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Bitcoin and Ethereum Price Analysis Today on the 18th of September: Cryptocurrencies Collapsed Again

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, Bitcоin (BTC) lost 3.07% in the past 24 hours. The price at the time of writing is $6286 per coin.


Source: https://coin360.io/

In the past 24 hours Bitcoin reached the highest mark for the day at $6452, later it fell drastically to $6338 and then fell to $6257 per coin. At the time of writing BTC added about $30.


Source: https://coinmarketcap.com/

In this time interval, we can observe a downtrend.

The remaining cryptocurrencies fell into the deep red zone:

Bitcoin Cash lost 7.23% over the past day and costs $414 per coin;

Ripple dropped by 2.50% and is worth $0.27;

EOS fell by 9.17%, and its price is $4.86;

Litecoin lost 7.79% and its value is $51;

Cardano fell by 7.69% and is worth $0.063;

Stellar decreased by 3.51% and costs $0.19;

IOTA lost 6.01%, and its value is $0.53;

Dash lost 6.58%, and its price is $182;

Monero became cheaper by 7.89% and is worth $107.

Ethereum reached the highest mark of $221 in the past 24 hours. A few hours later, ETH dropped to $195. At the time of writing, the price of the coin is $197.


Source: https://coinmarketcap.com/

The total market capitalization dropped to $192 billion. Bitcoin accounts for 56.3% of the total volume. In monetary terms, this is $108 billion.

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John McAfee Is Not Having It With Online Trolls

mcafee is fighting the trolls

Scammers, fraudsters, trolls – whatever you want to call them – have been pushing their luck with a lot of major crypto personalities and famous people.

We all remember how a fake account of Vitalik Buterin tried to cheat the poor followers out of their money and when Elon Musk could not get rid of annoying trolls asking him whether he wanted to purchase Ethereum or not.

This time the crypto enthusiast John McAfee decided to oppose the Internet “pests”. He published an angry message on his Twitter.

So, we genuinely recommend all the trolls to leave McAfee alone for their own sake.

We remind you:

John McAfee Predicted the Bitcoin Price for 2020

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Binance Is Launching a Regular Exchange in Singapore

binance opens a fiat exchange in Singapore

Binance, the biggest crypto exchange in terms of trading volume (based on the info from the CoinMarketCap) decided to expand into the fiat direction. Its CEO, Zhao Chengpeng, made an announcement where he claimed that the fiat branch of Binance will soon open in Singapore.

Firstly, the beta version will launch. It will happen on the 18th of September. This is a necessary step to try the idea out and fix all the flaws that might come up. The details of further development of the fiat currency exchange have not yet been revealed.

We remind you:

Review of Binance Coin Сryptoсurrency: Benefits for Holders and Prospects for Development

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