Coin pump and dump group?
Since the number of cryptos user is increasing every blessed day, many of the so-called cryptos experts were already taking advantage of the newbies.
They are taking advantage of those who can not dedicate little of their time to do research and understand what each of the cryptocurrency is all about.
Many come into the crypto world because they heard the news of how bitcoin price is skyrocketing. It is when they join that the expert started introducing more coins to them.
Though there are only two coins, Bitcoin and altcoin, And the best form to get more bitcoin is to have more money or invest in altcoin so that when the altcoin goes up, one can easily convert to bitcoin.
Hence the emergence of many pumps and dump groups. You may be wondering what a pumps and dump group is?It is a group created by a group of peoples in which they collectively buy certain coins at a given price. Since the price of coin changes according to its usability. When a coin price begins to go up and an outsider of the group sees it, People begin to rush to get the coin. It is when people started getting it the expert announce to his or her group member that they should dump the coin. They gain by dumping when outsider begins to buy the coin resulting in a loss for the outsider.
When this happens, who really benefits from the action? To me the expert who announces to his or her group members to get the coin benefit greatly because he or she must have got the coin hours before announcing. Am certainly sure he dumps the coin immediately he announces so that he will not be caught on the red side of the coin.
My advice to fellow crypto-trader is to do their own research and invest in the coins they see promising futures in and stop following whales.