Bitcoin Forum

Hi,

It's a stupid question but I have to understand how things work.
I don't really understand what is the pump and dump of cryptocurrency, Could anyone explain?
Also what's the difference between "Bids" & "Asks" I have seen them in BTC live charts.

With my best regards :)

usually there are pump and dump groups that try to do this. how successful they are remains to be seen because they usually fail in the long term or fail because a bigger whale crushes them.

what they do is they start a dumb group and then spam-advertise it everywhere with false notions of "getting rich with altcoins" then they get subscribers (aka gullible people). these pumpers start buying some random small altcoin themselves first then tell those subscribers to buy what they have already bought and buy it over price.
i think you can guess what their next move is: dumping on those who are buying now.

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BIDS are buy orders. people are "bidding" on something to buy it like an auction where you can place your bid at any price (not just above the last one).
ASKS are the sell orders. people are "asking" for a price to sell what they have.

Bump: This is usually happens when the bitcoin adoption is increased or any implementation happen over the blockchain technology. This time people use to sell their bitcoins much and traders use to be busy in this time.

Dump: When we hold the continuously and it gets stagnated in one place or keep on other altcoin related ICO and projects been implemented means that time dump use to happen.

A lot pump and dump for the altcoins, that's the part of life of altcoin. If you ride on the good wave, then good profit.

Don’t really trust the pump dump groups. I have been on telegram few weeks ago but now it seems that it was mistake really. They are crazy people and most of the groups have people who never listen to what OP is saying. They will vote that they are going to pump one of the group but then no body really listens him and people who are with OP will invest their money immediately. This leads to chaos and everybody looses the money who tried to invest. So its not that much perfect system to earn the money and to be honest its waste of time. Don’t follow really, go with whatever you see as potential coin or trade.

https://bitcointalk.org/index.php?topic=2014126.msg20074166#msg20074166

Good opinion, very useful. I just know that pump coin prices rise high and dump coin prices down or down drastically.
But now I know a lot about what is a pump and dump. Thanks for sharing his knowledge

Pump and dump coins is so annoying, they pumpers are like vampires of the crypto sphere and the victims of the dumps are like thei preys.

Hope it explains it better

I'll quote my previous reply here.

Guide on trading cryptocurrencies in general:
Amazing guide on margin trading on poloniex:

Pumping and dumping activities are those that influenced others to join them to manipulate an altcoins for them To selling those coins at high price but the revise is always the case for those who subscribe to their services and majority of pump group are scammers. Ask price is the price sellers are ready to part with their coins and bid price is the price buyers and biding for a particular coin. All this can be found on most exchangers platforms.

"Pump" means buying a lot of coins in a short amount of time. "Dump" means the otherwise. Sell all your coins immediately. Usually there are groups of people who join this pump and dump group to make quick profit out of it. Just a type of market manipulation. There are lot of shit  scammy alt coins in the market.

In crypto trading, pump may mean that a certain coin is in high demand due to a lot of traders buying. Dump means when a huge bulk of a certain coin is sold. These actions are considered vital to the value of a certain coin since supply and demand causes the high and lows of something's value. Sometimes, pump and dump may also be used to the increase and decrease of price.

Pump and dump is usually a scam short term scenario. First, a certain group buys cheap cryprocurrency assets, then artificially heats up public interest towards these assets - then sells them overpriced. Then gullible people end up with these overpriced assets and lose money. This is a manipulative scheme that meddles with prices.

well that is a fact which is happening and there is absolutely nothing we can do to prevent it. the altcoins are simply manipulation tools!
but this doesn't mean we should go away. no. instead we should learn to take advantage of the situation.

first you need to accept they exist.
second you need to learn not to fall for their emotional tactics to foll you
third you need to learn good timing. and with that you buy after the pump started but dump before the original players start to dump and get out with the biggest profit possible.

pump and dump is very common in the world of crypto currencies. pump means increase the price while dump mean decreasing. as currently we can see that the trend of the people is toward pump and therefore it price of bitcoin is increasing.

Sometimes people that hold a lot of coins will drive the price up by buying and then other people begin to buy and the price goes even higher. Then the original pumpers sell for a profit and the price dumps leaving the people that jumped in last to lose money. In this situation usually the more experienced traders and the pumpers make money and everyone else loses money.

Simple, whales work together (stronger in numbers). They buy low (often at ico). They hold and wait for news. They then buy to create a psychological high. Now any deviation from the high will be seen as a deal. Then they sell slowly. This happens in perpetuity. What I liked was the altcoin bear market. They were accumulating while others ran scared. Keep an eye out for icos that have been accumulated by a couple entities. Like bat

,usually those terms are economical words, that are simply being applied in trading, well i guess those pumps and dumps happening in the market, i had heard that there are people or organization behind the scenario. its not impossible to think that people or should we say traders are the ones controlling the market, but somebody might be manipulating it to cause pumps and dumps.

If you search for Pump and Dump groups on the forum, you will see many. What they do is everyone invests at the same time which automatically increases the demand for that coin which in turn, increases the value. If a normal trader sees this increase then he too will join the tide and as soon as it reaches the top point the group takes out their money. Everyone else who joined will be in a huge mess.

Well there are too many differences between "pump and dump" and "bid and ask"
Pump and dump works with crypto-trading, pump is when the price goes up from the buying price, for example, if you buy at 0.001 and the prices comes to 0.002 then that coin has been pumped.
Dump means the opposite, it can be used when you sell your coins, that is why so many people say "i have dumped my coins"

Bid is a BUY order in forex markets, and ASK is a sell order.

Added to that pumps and dumps are only beneficial to the admin who buys coins before announcing the pump and hence get the most profit out of it. Others just fall for the trap. Pumps and dumps are mere scam but since the crypto market is unregulated and decentralised, therefore such groups aren't going anywhere. I would suggest you to stay away from them.

It all happens because of users, the more bitcoin users will increasingly increase the bitcoin price and the need called Pump and so on the contrary that occurs in the Dump of cryptocurrency
A little full blowing will be possible if you continue to follow the forum

The answer is very simple. The value of a currency is constantly changing, it goes up and down according to the "supply" and "demand" rules. As demand increases, supply decreases, prices go up and vice versa.

Pump and dump are common,
it is not easily seen by trader. I still could not spot it either.

By the time is going, you may see the initial condition of pump and dump buy it price movement.

Buy and sell are sometime different between one trading site to other, you may have to try it sometime to know to which side is buying or selling.
eg. Polo and Bittrex have different side of transaction and target.

Pump and dump is were many big investors that manipulate cryptocurrency decided to shift they investment into a particular coin with the purpose of creating volatility and attract little investors into buy that coins to course a price rise  and the same people when they are in profit will dump that same coin untill the little investors lose out to them. Please note it is a manipulations.

its a group who really aimed to trapped people who's not really good with trading they taking advantage from newcomers and they will make
some huge pumped possibility that they are holding a lot of this coin and they will simply fake the buy and sell trades.

Lol, it seems you have fallen prey to dumping and pumping vampires. These so called annoying features of the crypto world can be converted into golden opportunities just with little patience and knowledge. Take dumping as an opportunity of grabbing more of your desired coin rather than mourning it. Good luck!