DISCLAIMER: Even though this looks like investment advice, please remember that it isn't. So don't make any important decisions based on what I wrote here. This post is for educational purposes only.
Ever heard of a pump and dump?
It occurs when a cryptocurrency's (often a shitcoin) price is artificially inflated to attract new investors, and then a large amount of the cryptocurrency is dropped into the market at once, shattering the price, and leading to a great profit for the dumpers.
Pump and dump schemes were very popular back in the early days of cryptocurrency, and while they still happen now and then, they don't happen as often as before.
Usually, pump and dump schemes are designed to take money from the investors. But if you're smart(and I know you are) you can make money from it too. I mean some serious money.
The trick is to never put more than $100 into any crypto that you wish to ride the pump, as it could back fire on you eventually. Some of these coins go up 25x, and I have personally ridden a pump that went 32x!
But there's s problem. And the problem is not very easy to solve.
The thing is, there aren't any ads on the internet saying "get in here! We're about to pump and dump!"
It's really hard to find these schemes. Luckily, there's a way.
There's a service called WhaleAlert.io. Whale alert is like the watch dog of all the blockchains. It monitors for large movements of certain coins, and sends alerts to subscribers when these moves happen.
They have a paid plan on their site, but I personally make use of their twitter, which also gives updates, but not as many.
The actual point of whale alert is to warn investors about impending pumps so that they can get out of the market. But who said you can't use it to mske money too?
What I suggest is to follow their twitter, and have notifications turned on. So once an alert is sent, you receive it immediately.
After that is done, wait for an alert to come.
The thing is, timing is key. Once whale alert confirms that a send is taking place, you'd want to buy that cryptocurrency that is being sent.
Once the pump happens, and you see the price start getting up, don't get greedy. This is where many people mess up.
Some people who were previously ok with getting 0.5x a day suddenly see 15x on their investment. And instead of them to literally take free money and run, they wait to see if 1000x is possible. Of course it isn't, and the coin plummets to zero.
They cry a little, drink some vodka and ride another wave. And make the same mistake. Rinse and repeat I guess.
The key is to take profits when you see them. If your coin has gone up 20x, take your profit and run. Even if it got up to $10000x, at least you didn't lose money.
But remember that timing is extremely essential.
Also remember that this isn't financial advice. Use at your own risk!
