Earn Free Bitcoin!

startMiner - free and simple next generation Bitcoin mining software

Friday, February 9, 2018

Here's my opinion on pump and dump groups

Pump and Dump, what is it?

I'm sure you've heard of the term "pump and dump", but you may not know exactly what it is. Basically, it's a group that chooses a particular cryptocurrency and alerts all subscribers to purchase the coin at a specific time, artificially pumping up the value of the coin because of the multitude of buy orders and then selling at a profit. I have participated in several of these and here is my take.

Is it worth it?

I'm not sure at this point. Honestly, I'm not convinced it's a good idea to artificially manipulate the market for several reasons, One, it does not provide an accurate value for the coin being pumped. When you set up multiple buy orders you can end up accidentally conning an innocent bystander who is only investing because the value is going up. Then when the price inevitably drops, which it will, that bystander will have lost money, and for me, I cannot be happy if I'm part of the reason another investor loses money. I cannot say I won't participate in any more, as I am still trying it out, but that is my opinion at least.

Should you try it? 

Sure! If speculating on a coin is fun, then please by all means go right ahead! I have done it, and will possibly continue if I feel that it's worth it. I just am not a hundred convinced that it's a good idea. That opinion may change, but for now, that is what I think.

Conclusion

As always, these opinions I share are just mine. I will not judge or get upset if they're ignored or accepted. My goal is to provide information on topics I feel are interesting, so your choice is your choice. Good luck on everything and stay tuned for another post on common abbreviations and their meanings!

No comments:

Post a Comment

Here's my opinion on pump and dump groups

Pump and Dump, what is it? I'm sure you've heard of the term "pump and dump", but you may not know exactly what it is. B...