What is a pump and how not to trade on a cryptocurrency exchange
This publication is not an insult to the team of traders with whom I participated in the pump, advertising someone or anything, an appeal for gambling and easy money, or trading / investing in cryptocurrencies, but only an attempt to understand what happened in order to shed light on what is happening daily, and warn the reader against rash acts.
Fraer’s greed ruined
A frantic desire to make money on a super profitable transaction, namely on a pump (artificially raising the price of an asset) with rash actions, can lead to ruin.
At that moment I watched the course from the beginning to the upper limit.
I tried to go in several times from the very beginning, but the price always ran up.
The computer, the Internet and the stock exchange were slow.
The price of BTC is not so perceptibly perceived by the human eye as RUR, since we are not used to it because of the high volatility of bitcoin to fiat.
I relaxed and was distracted at the wrong time.
It was the first, but not the last pump in which I took part before figuring out what was happening and dotting i.
Desire to understand what happened
You can’t see the entire history of transactions on a particular pair on the exchange, as this is superfluous and large information for the browser. But almost any exchange provides its own API. At the github, I found a python3 trading bot project, borrowed the code and modified it to fit my needs.
The API allows you to receive data on the latest 2000 transactions. But in response, I received only 989. I understood further ...
The story in pictures about how the pump happened
Long pictures of the story of how the pump happened
Conclusions on what happened
- The plans are not fulfilled.
- Even with a delay of 7 minutes, you can get a profit.
- The price rises so quickly that you can often not have time to buy on time.
- Do not blindly trust the teams.
What happened before the pump
989 transactions. Even after the pump? Total? And before the start of the pampas 12 deals ...
What does this mean?
1) Very low liquidity.
2) The currency is still unknown and is not understood by anyone.
3) It is not clear how its owners behave.
Someone created the ANTI cryptocurrency. Then it was added to the stock exchange. Since no one knows about it and most likely a limited circle of people have it, its owner placed orders immediately for ~ 85 satoshis. And no one can bring down this price, because no one else has this currency! What happens next is unknown to anyone.
Such investments are extremely risky!
The moral of this fable is this: without knowing the ford, do not poke into the water .
2.5 hours before the start of the pump, ANTI began to be bought at the lowest rate, and bought for a total cost of ~ 85 thousand rubles.
Then, as already described, hamsters came flying ...
And what if we assume that I bought everything, then put small portions of Bid orders at an overpriced price and attracted demand with an audience of 2,000 people? Wow ?!
Fortunately, this can be calculated, the script will help us.
Those. if the administrator purchased in advance and immediately sold everything, then he would have been in positive territory by ~ 8 thousand rubles.
Was it true or not, alas, no one will know. But worth considering. If someone won, then someone else necessarily lost.
Do not step on my rake !
PS: Everyone will talk about how they did x2, x3, x5, x10, x25, x50, x100 and so on ad infinitum, about money from the air and other rubbish. And rarely anyone tells the story of the defeat. Learn from the mistakes of others. I hope the publication was useful.