When trying to make the most out of the cryptocurrency you have, there are a number of strategies you can employ. One of these is known as pump and dump strategy. In this case, an individual or entity artificially inflates the value of the currency, stock or commodity they have.
This can be achieved by providing information that is not factual or truthful. In essence this strategy relies on misinformation to raise the price of the commodity or the stock they hold. The price increase in such a case is known as pumping.
Once the price reaches a desirable level, the account holder can start selling it off and that is what is referred to as dumping.
In order to ensure this strategy is successful. The organizer or pool of organizers choose an asset. In most cases, the asset is a low cap cryptocurrency that is always traded in a flat trend. That means it is not something that would normally capture the attention of other investors. In most cases, such an asset costs only a few cents because it is much lower than popular assets on the market.
Organizers buy this asset in low volumes so as not to trigger a market frenzy which can lead to higher pricing within a short time. As acquisition of the coin or asset is ongoing, the organizer lays out a well-thought out marketing strategy. Marketing can be done both online and in other media. The message of the campaign is usually a promise of future yields. That is what gets more people attracted to the particular coin or asset.
As people start buying the coin, organizers also buy in and this causes the price to jump up. As traders watch the trends regarding the particular coin, they start buying it out and that inflates the price. This frenzied buying of the coin is referred to as the first pump and is often characterized by a large sale of tokens or coins.
After the first pump wave, organizers allow the prices to decrease to their reasonable minimum. Afterward, they repeat the same process. The second wave is often characterized by higher prices and more traders getting interested in the particular coins. As prices reach peak levels. Organizers sell off all their assets and get a considerable amount of profit.
There are both short-term and long-term pumps with each one aimed at achieving a specific goal. For instance, short-term pumps are done within a short period of time and the organizers sell off their assets in one instance.
On the other hand, long-term pumps are intended to make bigger profits. They usually happen in waves. The first wave sees a price increase and eventual buying of coins and then a decrease in the prices of the particular coin or asset.
After some time, the same process takes place but the second wave is characterized by even more marketing and larger buyouts. Long-term pumps can have more than three waves depending on the desires of the organizers.
Just because pumps and dumps can make you money doesn't mean that you will not face risks. For one, you need to be sure that you are joining a legitimate group when thinking of using this strategy. Keep in mind that there are hundreds of groups or organizers that may claim to have a sound strategy only to end up messing everything up.
Another risk you are likely to encounter is that you are never really sure if the strategy will work. You may end up investing a significant amount of money in buying coins hoping that you’ll sell them out when prices rise only to realize that your pump and dump strategy is not working as effectively as it should.
There is also the risk of having to deal with the law. Remember that some people consider this strategy illegal and may therefore end up reporting you as a scammer.
Crypto pump and dump groups on Telegram are channels that post signals on unknown crypto coins and that influences the prices of the coins with low volume. In the end such coins gain value tremendously.
Crypto pump and dump groups on Telegram come in a variety of options. Some groups require you to pay a given fee before joining while others are completely free of charge.
Some of these groups are open to the public meaning anyone can access them and find information. There are also closed groups that require you to apply to join before an admin approves your request.
Once you are a member of a given group, you’ll be able to benefit from the insider information that is shared in the group. The information helps you know when to invest in a given coin.
Crypto pump and dump groups on Telegram are usually formed by an individual or a group of people.These individuals are called admins and are in charge of setting all the rules of the group including instructions for pump signals. They are also responsible for admitting people into the groups.
These admins usually open Telegram channels with many subscribers. In most cases, you’ll find up to 50,000 subscribers in a single group. They are also responsible for choosing the coin with the lowest liquidity according to their own assessment. Group admins also pick the time to publish a pump signal.
When the admins post a signal, thousands of their members buy the coin identified. This action causes an increase in the price of the particular coin. In most cases a coin’s value will increase tremendously in a matter of minutes.
There are many different pump and dump groups operating in the cryptocurrency space today, each with their own strategies and tactics that they use to drive prices higher. Here, we take a look at some of the top crypto pump and dump groups out there.
Mega Pump group manages pumps on Binance. It is a large group with over 50,000 subscribers on the Telegram channel. When pumps are initiated, the group gains volume pretty fast thanks to its large membership base.
The group provides all information for free which is why it has become one of the most popular through the years. Individuals can find a lot of information regarding trading when in this group. It is worth pointing out that it also has a support forum where members can exchange ideas and ask questions regarding trade.
Big Pump Signal is one of the largest pump and dump groups in existence today. It boasts of over 70,000 members on the Telegram channel and up to 200,000 members on the Discord channel. This group coordinates cryptocurrencies on the Binance exchange.
This is another free group and therefore anyone can join without worrying about paying an initial fee. The group has an affiliate program that gives preference to members who have referred other people to its channels.
In case you join the affiliate program, you’ll be able to receive information regarding upcoming pumps earlier than members who have not referred anyone to the group. This group’s success is attributed to the large number of subscribers who take heed to pump calls and participate when the activity begins.
Big Pump group is another pump and dump group that carries out its activities on Binance.com and Kucoin.com. This group has a similar affiliate program like the one that Big Pump Signal uses.
In this case, members who have referred other people to the group tend to enjoy more privileges including receiving information before regular members. The group has over 30,000 members and is still growing.
Big Pump operates on Kucoin.com and Binance.com, two of the largest and most popular crypto exchanges. They are known for their large pumps, which can result in massive price increases. Big Pump's affiliate program allows members to make a commission on new members that they refer. The group boasts tens of thousands of followers, making it one of the most popular on social media.
CryptoWolf group is another popular group for crypto traders who want to join in pump and dump strategies. This group focuses specifically on pumping low-cap coins, which are coins with lower market capitalization and, therefore, potentially more vulnerable to price fluctuations. Using cutting-edge TA indicators, CryptoWolf can provide subscribers with the best opportunity to make a profit from crypto trading.
WolFX Signals is another group that has made a name for itself in the crypto trading world. Boasting a success rate of 90 to 95 percent, the WolFX signals group provides access to some of the most profitable pumps and dumps on popular exchanges available today. Members can choose between joining the free group and the VIP group for a monthly subscription fee. Members of the free group receive between three and four signals weekly, while VIP members receive up to 25 signals each week.
Founded by top crypto traders with over a decade of experience, Learn2Trade group has quickly become one of the most respected and trusted pump and dump groups for crypto trading. They provide access to daily signals, analysis of market trends, a forum where members can share ideas and strategies, as well as training courses to help you learn more about cryptocurrency trading.
Boasting over 110,000 members, the DeFi Million group is one of the most active and well-established pump and dump groups in the cryptocurrency space today. It's the perfect group for members looking to take advantage of bulk buying. The group frequently purchases certain tokens in a large volume, triggering a spike in prices and then selling the holdings at a premium price. This is an effective strategy to make a profit when trading low-cap tokens, especially those that are highly volatile.
Minter Network is a large Telegram group with over 300k members. The group is quite famous for using the pump and dump strategy to make profits for its members. With over 300k people buying a given cryptocurrency at the same time, prices are inevitably going to go up.
This is well organized to ensure that members play their part. When the time is right, members sell off their coins at a much higher rate making it possible for them to earn a lot of money.
An interesting thing about Minter Network is that it carries out pumps on a daily basis. And this has enabled them to achieve a significant level of consistency and profitability. Minter Network is the largest group on Telegram which is why it can influence prices easily.
This channel has a team of experienced traders who help others through the process of trading. Crypto Classics Signals provides Binance signals with good quality and quantity. The group also works with Cornix making it possible for members to trade automatically.
In most cases, Telegram pump and dump groups work on the basis of signal delivery. There is no guarantee that a signal is of high quality and therefore there is always the risk of losing your investment or making less than you anticipate.
Subscribing to particular Telegram groups is a good idea because it allows you to get accustomed to the workings of the particular group. However, the choice of whether you want to use a signal in one way or another is entirely up to your judgment.
If you decide to join any Telegram pump and dump group, be sure to find out what algorithm they are using to determine the best signals. Consider how accurate a particular group has been in the past and use that to determine if it is a reliable group.
You should also find out how effective a particular group is when it comes to communications. A good group usually shares information long before the pump and dump process is initiated. That way you are ready to take action before the event.
Listening to what other members in the group are saying is another way to determine if a particular group is suitable. In most cases, you can find a lot of reviews regarding the most popular groups. Use such information to judge each group.
Another way to determine if a particular group is worth it is by checking the date of establishment. If the group is only a few days or weeks old, chances are that it may not be the best. Instead, go for groups that have been around for a considerable amount of time.
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