Bitcoin -Watch out for the Pump and Dump

This morning my email received 5 different very dodgy looking Cryptocurrency money making schemes and they are all the usual just watch this video crap and if you buy this program for $40 all you have to do is sit back and watch the money roll in. When I read this dribble I do just dump it in the trash right away but I know there are people out there who are looking for ways into the Bitcoin market and as they might not have $10000 to invest they might have some savings they are willing to invest and they see these videos and the harsh truth is they get sucked into the hype of the video and think it's worth it I can tell you that almost 100% of the time they are a SCAM. Bin that rubbish, this is a relatively new market and the scammers have been honing their plots and they are now attacking the vulnerable public who are looking to make an honest investment. If you are worried about a certain opportunity that you have or will be offered to get involved in the Cryptocurrency market, then leave a comment on this page and I will investigate it and come back to you with a definitive answer. Please don't invest before you know who and what you are investing in because after the fact it's simply too late your money in Gone.
So Let's have a look at the Pump and Dump.

Pump and Dump-What is it?

The definition of a pump and dump is as follows - denoting the fraudulent practice of encouraging investors to buy shares in a company in order to inflate the price artificially, and then selling one's own shares while the price is high. The Best way to explain this is Let's say I am the pumper and I ring you a potential investor and I will tell you that I have information about a company that are just about to release great news about a innovation and that news will basically make the price of the company shoot up on the stock market and if you get in now you will make a fortune. You can't believe your luck and buy into the company at this lovely low price. I and my cohorts repeat this process many times and just as we planned the price shoots up. But you and the rest of the small investors don't know that I the pumper and my cohorts own most of the shares in this company and suddenly out of the blue at a time of our choosing when we think the price is high enough we sell all our shares and the price plummets leaving you with shares that are almost worthless! You are now the victim of the old "boiler room" pump and dump scam. Just take a second to reflect on how that would feel... Not nice is it?

A Cryptocurrency Pump and Dump

Remembering the tactics used in the above example on the online version of a pump and dump things can happen much quicker and with much more devastating results. A typical example of this can be a start up company or a certain altcoin "fake news" article suddenly appearing online, of course instigated by the pumper, stating that a very rich and important person or company are going to invest in a cryptocurrency or a certain altcoin. This would be accompanied by a social media frenzy of message to get in and buy now and the hype builds, buy now, buy now or miss out. People buy not knowing it is fake news and the pumpers sit back wait and BANG! they sell all their stock and yet again the poor guy who believed the hype is wiped out and practically penniless. I was shocked to read in a report while I was researching this topic that one of these pump and dump schemes online took only 8 minutes!!!

Steps to avoid a Pump and Dump

Lets take the advice of the CTFC
1) Don’t purchase digital coins or tokens because of a single tip, especially if it comes over social media.
2) Don’t believe ads or websites that promise quick wealth by investing in certain digital coins or tokens. Thoroughly research virtual currencies, digital coins, tokens, and the companies or entities behind them in order to separate hype from facts.
3) There is no such thing as a guaranteed investment or trading strategy. If someone tells you there is no risk of losing money, do not invest.
4) If you believe you may have been the victim of fraud, or to report suspicious activity, contact the CFTC at (866) 366-2382 or visit CFTC.gov.
I don't need to add anything to that other than to say Heed the Advice.

In Conclusion

If you spot any scam relating to Cryptocurrency online then come back to this page and make us all aware of it because have no doubt the scammers will not go away and the more the popularity of this market grows so will the many ingenious and evil schemes they will come up with. It is all our responsibilities to keep each other safe online, so if you have any useful information then use your voice speak up and tell the world for we have to shame those who would fleece others who are just trying to make an honest living. I look forward to your comments and feedback and if You think this is a useful article then spread the word around social media Let's not have "fake news" but "honest news"
Cheers Gerry

 gocryptosales.com