Features of cryptocurrency trading
Today, a growing number of people interested in stock trading cryptocurrencies, allowing to obtain a high level of profitability through the volatility of the exchange rate. While beginners in this way lurks a large number of hazards that could lead to sad consequences.
First of all it concerns the work exchange manipulators controlling the rate of virtual currency for profit.
A bit of terminology
It is first necessary to define the basic concepts specific to manipulators:
- PAMP. Is a buying large amounts of cryptocurrency in order to artificially increase the demand and value of tokens on the market.
- Dump. Sale of tokens after the increase in its value allowing the arm to capitalize on the currency difference.
- Hamsters. This term is called inexperienced players are not able to determine the cause of the increase in the cost of the coins and buying them at an inflated price, even at high stages of Pampa.
In terms of youth cryptocurrency market it is characterized by instability, in which any emerging news can have a significant adjustment to the price, and what are the big players in their speculative interests. At the same time to control prices must have a considerable capital. In most cases, even the largest players is not able alone to hold the pump, so they team up with other like-minded people to coordinate actions and achieve common result. In some cases, to participate in Pampa can to a few thousand traders.
However, there is a dependence of the pump from the supply of cryptocurrency pairs on the market. The more existing PRizlojenie, the harder it is to influence its value by buying. In addition, in most cases this strategy applies to Aldona with low cost, since large amounts of output bitcoin market is connected with huge investments.
It often happens that the pump has multiple waves, with the second of them usually are more expansive, as in the process of buying tokens actively involved end users wishing to capitalize on emerging positive dynamics.
Preparation of Pampa
Process pumps is a complex operation that requires proper training. First and foremost, it is to inform traders about the upcoming increase in the cost of a particular cryptocurrency. At the same time use all possible communication channels, including thematic forums, and specialized groups with social networks, news sources, and so on. Goal-to draw attention to the upcoming event from the maximum number of potential participants trading operations.
In most cases, specify not only the start time of a price increase, but also the specific exchange, which will mark the growth. The most common option for posting information today Telegram. This is due to the fact that the service has a high degree of safety messages and allow users to remain anonymous.
After the promotion step should be the immediate trading. It is associated not only with real purchases, but maintaining a visible activity of trading operations. For example, with the use of bots is exposed a large number of buy orders, which are then removed, and traders have an impression of their performance. In turn, after the first growth of prices bidders who received advance notice about the upcoming price increase beginning to buy the cryptocurrency, which further stimulates the growth of quotations.width="100%" />
After reached the peak, Pampa, manipulators are beginning to get rid of the acquired tokens. Their task is to sell as many coins for a high price, while there is a demand from buyers who intend to capitalize on the growth. The price goes down rapidly.
This ends the first phase and starts the second wave. Manipulators again buy up large volumes of tokens in the Wake of the falling value, causing re-growth rates. Traders are actively participating to the auctions, trying to acquire increasingly expensive tokens. As a result, repeated all the same steps that in the course of the first wave.
Practice shows that within a few hours pamparam manage to earn on exchange rate difference of about 10-20% of the value of the original capital. After this is to prepare a new attack, this time on another exchange.
How to identify pump?
There are several signs of the organization of the Pampa. With a high probability to speak about it in the following cases:
- There are no objective reasons for the rapid growth of prices and exchange activity;
- The price of the cryptocurrency on other exchanges remained relatively unchanged;
- Active promotion via live chat buy tokens now.
If the purchase has already been committed, and the fact that Pampa is revealed only after it is necessary to sell the assets at the first opportunity, even with some losses. Delay can lead to even more disastrous financial results. Given the fact that the pump has multiple waves, it is advisable to buy at low values and to win back the money lost on the first takeoff.
And remember, Pampa is strictly prohibited in the financial markets, but cryptocurrencies are decentralized and do not have a strict legislative regulation, PoEthat stock manipulators almost 100% would go unpunished, respectively, and their activity can be very high.