| json_metadata | "{"app":"musing/1.1","appTags":["cryptocurrency","trading"],"appCategory":"cryptocurrency","appTitle":"Could someone explain about pump and dump in cryptocurrency trading ?","appBody":"<p>Often we hear someone (trader) say the word pump and dump. Both of these terms are specified in the world of Cryptocurrency.</p>\n<p>1) Pump</p>\n<p>Pump, comes from English which means pump.Pump which is meant here is related to price. Someone who has bought a coin (cryptocurrency) at a certain price really wants \"pump\". This can be said as a drastic price increase.</p>\n<p>Pump aims to force the price of a coin to rise unexpectedly. This serves to create a panic. Of course, panic to buy.</p>\n<p>This (pump) is not always tied to a group. Someone can create a panic about buying in an exchange. Of course, with sufficient capital.</p>\n<p>This might be called a market maker or a market user too. Because indeed, the ultimate goal is to control the market together.</p>\n<p>In this case \"pumper\" is the term for someone who raises the price, will buy the coin at a high price, for example current steem price, 0.00007206 BTC, then the pumper will force the purchase at 0.00007800 BTC or at a price that is not far from that number.</p>\n<p>If you buy on the last trade one by one (0,00007207, 0,00007210, 0,00007300) this is called a single order. Not pump.</p>\n<p>This certainly will not be effective. And failure also creates panic to buy.</p>\n<p>Differ from pump. Because buying at the highest price. This will process several orders at once.</p>\n<p>And of course. Inevitably buy the next order too, will not give a slight difference from the top buy order.</p>\n<p>This is of course, aiming for the order to be exposed first. That is so on. And precisely this is what the pumper wants.</p>\n<p>How about a dump ??</p>\n<p>Dump, which if interpreted throws away. This is indeed worth not caring about the \"excess\" of the coin. Yep, because they are not investors.</p>\n<p>Say the pump results above produce a last trade: 0.00008300 BTC and low: 0.00007300 BTC.</p>\n<p>So, when he resells. When dumped, they sell far from the last bid.</p>\n<p>For example, he immediately sells at the number 0.00006500 BTC or 0.00006300 BTC. While clearly the last bid is 0.00007253 BTC for example.</p>\n<p>This is to cause sell panic or result in people being forced to sell cheaper.</p>\n<p>Not sell in the top buy order (bid) one by one.</p>\n<p>This is my explanation of Pump and Dump. Thanks.</p>","appDepth":2,"appParentPermlink":"f3dchrecw","appParentAuthor":"edhimuryanto","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}" |
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