Two concepts frequently heard by those who invest in cryptocurrencies. What do these concepts mean for cryptocurrency exchanges? Interest in cryptocurrencies is increasing day by day. In particular, Bitcoin acts as a locomotive in the market compared to other coins and continues to increase people's interest in the cryptocurrency world day by day. The high earnings of crypto currencies attract the attention of both small and large investors to this area. In our article, we will examine the pump and dump method, which is applied to earn money from these cryptocurrencies, but includes some negatives.
Particular attention should be paid to this stock market movement, which can cause difficulties for investors who have just met the market. The reason is that investors experience many difficulties at the end of the transaction. Nowadays, Bitcoin Pump and Dump has become interesting on many forum sites and various talk groups.
The Turkish equivalent of the word pump is to increase, to inflate, and the word to dump to lower, to empty. In pump-dump transactions, groups with a large number of people are involved in the organized trading of the coin at the same time.
It is almost impossible to make a pump dump system with one person. Because in this system, the main thing is to buy high amounts of coins. For this reason, it is absolutely necessary to participate in this practice in groups. So how does the application work? The price of the cryptocurrency determined in large purchases made in groups moves upward. This event is called a Pump .
Pump transaction is briefly purchases made under market price. In short, we can say that the price is pumped, that is, the process of increasing. Purchases are made until the targeted prices are achieved in groups. During the purchase, orders are given from the lowest figures. Afterwards, when the determined price is reached, all coins start to be sold by the members. The process of selling coins at a high price from the point where the price reaches the peak is also called Dump.
Nowadays, such transactions, which are realized as a result of organized action of groups established on social networks, often result in losses due to the inexperience of new investors due to the effect of manipulation.
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DISCLAIMER: The statements contained here are not investment advice. Never trade without researching the markets thoroughly and without comments from different circles. Read the comments of the investors you trust and consult their opinions. Remember that every trading transaction involves risk. Make your own decision when taking any action. jaseen, cannot be considered directly or indirectly responsible for any damages or losses arising or allegedly arising from investment products or services.
