Surviving and making revenue off pump and dumps.
The cryptocurrency market has been steadily approaching the moon over the last few months and a lot of people have been left in the cold after pump and dumps occur with coins they’ve held or coins they’ve just invested. If you’re trading cryptocurrency with a lower amount of liquidity, the odds are stacked against you, whales essentially control the market as they can pump smaller alt-coins at will and dumping them leaving those who followed their lead in the cold. I noticed a few different strategies you could take to avoid being left in the cold after a dump and I’ve listed them below.
“Don’t get greedy”
Don’t get greedy and keep holding the coin with the intent to sell whilst checking the price daily. If you are doing this you are better off investing over the long term in a currency you believe rather than gambling on the very speculative daily movements of crypto.
“Don’t risk your whole position”
Don’t risk your whole position, if you want to hold in hopes that the coin will go up and you’ve attained a healthy profit, cash out a percentage of your coins to solidify your increase.
“Hindsight is 2020”
Hindsight is 2020, I’ve experienced this a few times myself, ‘why didn’t I place more money on that coin’. The truth is you never know. It’s always a gamble and anything to could happen. Always put what you can afford and no more than that. The attitude I have towards crypto is, this could either be worth a lot of money or nothing, and I can afford to lose the amount I’ve invested.
So in the end the truth is trading and getting involved with pumps and dumps is always a gamble. You never know when the market will drop and you could lose a lot more than you planned to initially. If you’re thinking about investing in cryptocurrency, choose one you believe in and hold for the long term because if the worst does happen and the market does crash and you’re holding over the long term things won’t get to you as much as if you’ve been gambling.
Congratulations @ardy! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honnor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPBy upvoting this notification, you can help all Steemit users. Learn how here!
It takes time to learn trends unfortunately. If you stick with it you'll get there, not you specifically Ardy.
I was in a pump group on Telegram. It was complete BS as you quickly found out they had another group of sharks buying in before the pump started. Learned real quick to avoid those and any spike like that on Polo. Since then I've done well. Takes time.
It's true, the cryptocurrency community is so unregulated that the market is really a free for all for better of for worse at the moment. I think it makes it especially hard for newbies to wrap their heads around what's just noise and what actually matters.
Let me know what you all think, as these are conclusions I came through my experiences and speaking to others who have traded crypto.