Hello! My fellow crypto enthusiastic friends. Today I will start this article by asking you a simple question. Do you want to be rich? Many of you will say that I have gone mad or insane. Saying who in this damn world won’t want to be rich. Putting the question aside many who are in crypto world for a long time have heard about pump & dump. People in internet says it is an easiest way to generate wealth. But is it true or has it been glorified to a point where we are being brainwashed to think it is a quick way to be rich.

Today let’s understand what is pump & dump and why people who are new to crypto are attracted to it. As we already know crypto world is a volatile one. So, to understand what it is in easiest way let’s assume a scenario where Mark an average guy who is investing to try and make extra money. One day he saw a comment on his social media page talking about a small stock that was about to gain big. Mark bought 1,000 shares at $1 each in hope that he would get rich shortly. At the same time, scammers had bought the stock for $0.50 and now began hyping it up to make the price rise. With more people buying in, especially people like Mark, prices jumped to $5.

Soon after the dumping process took place. At the peak, the scammers sold off the shares they owned. The price fell sharply down to $0.20. Mark wanted to earn even more due to his greed so he sold much later, losing most of his investment, which had dropped from $1,000 to $200. He discovered that the scheme investors had used was called a pump & dump.

Now I assume that you all have a certain idea of what pump and dump is from the above example. So, at the core of it pump and dump schemes appear to be the fastest way to make big gains but in reality, what happens is that get scammed. Shady operators like fake gurus, social media influencers buy cryptos in pennies and then fill the internet with praise like: “This coin is destined for the moon!”

So how can you identify when you are getting caught in pump & dump you may ask. Easy. If your instincts warn you (the offer sounds strange then it is likely to be a hoax, mentions a currency or stock no one was discussing yesterday) then it’s likely a trap. If people only invest because the newest trend is popular. What they’re really doing is trusting their FOMO and not making informed decisions. If it’s been less than a week since your cousin read about Bitcoin and they are now giving you stock advice perhaps… just perhaps… cross-check the information.

So, you do not get scam. Take your time to look into the policy in detail. Ask questions. Don’t put your money in a project just because you saw a video saying you will earn double. It’s really just gambling at this point. Building your portfolio should be like working out it may be slow but overtime the results does not disappoint you.

In the end there’s no easy or quick way to earn a lot of money and people who claim there is are usually looking to take advantage of you. They make the most of the excitement and ambition that you have. It seems unfair to give a person a treat, just so you can take away their lunch money. Next time you hear a buzzword stop, learn more and think nothing goes to the moon that fast besides a rocket. You’re not going to be NASA.