Making bad trades and PUMP Groups

in crypto •  2 years ago 

Part 2 of my article on how I started with cryptocurrencies
(Part 1 - https://steemit.com/cypto/@cryptor47/how-i-started-with-cryptocurrency)

There I was, a couple of months into crypto mining making decent income mining SHIT-coins.
I've sold my solo-mined Hunter Coins for about 3 BTC (BTC was about $500 at the time) when it got pumped, could have sold them for double that, but was too greedy and thought it will keep rising - didn't learn anything on that occasion though.

Now I was a half professional in my naive mind, so it was time to start making loads of cash trading altcoins. Poloniex was the site I used most heavily at the time along with a couple of others that don't even exist anymore. Everyday I stared at the screen seeing coins I never heard of before doubling up, even raising all the way up to a 1000% in a matter of hours. I was more than eager joining those pumps, mostly listening to what people were suggesting in trollboxes and keep loosing money. As soon as I bought the coin, price seemed to go down. I didn't understand what I was doing wrong.

Than I got introduced to PUMP Groups. This fine gentleman on twitter that were willing to share with me which coins they were going to pump at a specific date and time. They only agreed to share the name of the coin at the time they specified and they had a nice following of people just like me. We were all going to be rich!

They told us the name of the coin and the exchange and off I went, clicking panicky buying everything I could and when I spend a couple of Bitcoins I relaxed and started waiting for the 1000% price increase. Strangely the price plummeted in a matter of minutes making me panic sell and loose more than half of what I invested a few moments ago.

I did some research about it afterwards and found out how this PUMP Groups work. They decide on a coin and silently start accumulating coins during a period of a few days or even weeks being careful to keep the volume down so that nobody notices. Next thing required for the recipe is a bunch of naive newbies dreaming about riches. When the time is right they start aggressively buying up everything in the sell order book, raising the price quickly. When idiots like me join, they are already selling, to US!
I'm actually happy that I did it today, it was a lesson well earned. As Andreas M. Antonopoulos said in one of his lectures nothing can teach a person more about investing, than loosing money.

I couple of day later when the same group announced another coin they will pump I was there out of curiosity. And sort of got my revenge. It seemed there was a whale present at the right place and time with a shitload of coins they were trying to PUMP and kept selling it to them until they were out of funds. The price never increased more than 30%. That specific Group never twitted again :)

PumpAndDumpGroups.png

Some time after that I found about a coin that was more than fantastic, unbelievable technology, the best thing ever and I'll write about that in my next post.

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A big thanks for this post. This will help some people to not make the same mistake like you did.
When are you posting what unbelievable technology you found out ? :)

Thank you for your comment.
I was trying to be sarcastic, I'll write about it on my next post :)

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I follow pump groups out of curiosity. I think I even tried to catch a pump once, but quickly realized it's a scam right out of Wolf of Walstreet or Boiler Room. It's really a shame so many get trapped by them when they start trading crypto's.

Thank you for your comment.
Yeah I know, I definitely felt like an idiot than :)
The sad thing is that I still see people falling for it today..