What is a "Pump & Dump"? - How to avoid FOMO costing you money
With so many currencies having very small market caps, the emerging investment space of the crypto-economy is extremely manipulatable. Pump & Dump groups are scamming millions with a "get rich quick" promise to anyone willing to join the groups. YOU SHOULD AVOID THESE GROUPS AT ALL COST!
The people who run these scams simply buy cheap coins. Send out a message to their followers and sell the coins back to their own followers at an inflated price. Far out!!! It's less work just doing the research and finding good investments. Why do you have to rip people off?!!
I just wanted to give you a quick visual example of what to look for using the recently released Monaco.
Full disclosure, I bought in at ICO level which is why I have noticed the charts on this one. I am by no means a technical expert. @financialcritic and @cryptocharts I welcome your commentary of this assessment.
The chart above shows two types of growth. The first (see above) is parabolic growth. Don't get me wrong, this is very exciting to be part of. I recently had an investment run 10x in 48 hours. However, it almost always leads to an inevitable "dumping" which can be equally as heartbreaking, as I found out with ZrCoin.
I had 4x my ICO investment and went to sell 50% and realized I had not even requested my ICO coins be sent to my wallet. They are being transferred now but 400% has turned into about 15% last time I checked. Still a decent gain, but a huge opportunity lost. A newbie mistake that will not be repeated.
Comparatively, I am much more confident when I see the sort of growth highlighted above. This pattern is far more resistant to heavy profit taking driving to further panic sells.
Of course, Monaco could just as easily go down from here, but my point is you have to avoid buying into parabolic rises. FOMO will cost you a fortune in this economy. Do your research and look for the sleeping giant. Play it like a pro and sell into the parabolics.
This is one of the best pieces of advice I can give to anyone starting out in investing the crypto-economy
Stay stoked, keep frothing..... and always remember an informed investor is a successful investor.
Fish @beachbuminvestor (coming soon to YouTube "The Beach Bum Investor" channel)
Awesome advice. Steady growth is best for long term holding, and if you do see skyrocketing growth, it might be a good idea to jump into an exchange's trollbox or the coin's Bitcointalk thread to see if a pump group is working it. If so, do sell at least a portion of your coins for some quick profit; you can always buy back your coins cheaper later!
already following this legend. Upvoted for the additional advice. Gret work @catotune