People always try to wind ways to hack the opportunities. Same thing happens in bitcoin and crytocurrency trading. Doing things with different approach other than ethical one could increase your gains but also increase your risk to an extreme level. Bitcoin and cryptos pump and dump is not a ethical way to gain profits and is highly restricted practice by most of the exchanges.
When a group of people or investors put their investment in a particular opportunity to increase its volume, it also increases its price this is called “Pumping”. On the other hand when they sell of their investments after reaching to a predefined level and due to this bulk sell prices decrease suddenly to ground is called “Dumping”.
So Pump and Dump is a practice followed by a group of people and investors whose combined efforts can increase and decrease the price of a crypto coin. These groups are generally established through forums, blogs and other groups who decide to invest in a crypto coin which they find very low and then invest altogether in that coin on a particular time decided by the groups. This sudden investment in that coin increases its value and after getting decided profits they sell that coin. This practice provides a huge profits to those groups but the investors who enter in that coin looking at the increasing price are dumped badly and loose their money.
So if we talk about Pump and Dump. It is really not an ethical practice and we must be far away from this. You can’t even know that you are in the same group but you could also be dumped.
Always believe in ethical ways to grow your wealth. It might be a little slower than the other unethical ways but makes you assure that you will get consistency in growing your income.
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