How to make Bitcoins with pump and dumps in few lines

in #bitcoin8 years ago

As with Penny Stocks or "Shares Cents", the criptocurrency or Altcoins are the goal of many traders with some purchasing power. It is easy to make good money by inflating the price, the rest of the people (approximately 90%) lost due to schemes Pump & Dump.

How the Pump & Dumps work?

Usually it works the game:

Are the players who inflate the price of a currency (A Altcoin for example) creating buzz through TrollBox or specialized forums and investing some money in the Altcoin with orders to false purchase prior to this work, they spend a few hours or days buying coins at a very low price, usually only a few satoshis, when you have done with a few coins, start promoting it.

Promoting currency makes gains momentum, the volume begins to increase and coins begin to gain value when the price reaches a desired profit level then players sold all currencies, this causes the other investors to enter panic, making a selloff that deflates the price.

It is not difficult to identify a Altcoin that has been used for a pump and dump. If we see some graphs altcoins price behavior noticed this:

These players make a lot of money, they have the capital and knowledge to do so, but that does not mean we have to lose all the time.

If you can identify a currency that is preparing for a pump and dump we can get with a few coins at low cost, if we buy them before a pump and dump start can make us some money if we are not very ambitious, it is not difficult to get hold of a decent profit if we know how to invest.

Some tips for making it possible to win a Pump and Dump:

  • Divide the available capital in equal portions and invest small amounts in several altcoins, that way you diversify your investment and minimize risk.
  • Check historical price, at least 3 months to know the levels of volume and price of the currency.
  • Buy only when the price level is below the quarterly average.
  • Try as much as possible to buy coins with very low price (recommended between 1 and 100 satoshis for good returns)
  • When shopping, place an order to sell between 300-500%, not more.
  • Be Disciplined and Patient, orders can take days or weeks, what good is worth waiting.
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