📢 What is Pump and what is Dump in trading? 🚀🔥
For those who ask about Pump or for those who do not know about pumps, here is the explanation 👇
🔹 Pump is a sudden and rapid increase in the price of a cryptocurrency over a very short period of time, often occurring due to a large influx of liquidity by certain entities (whales, trading groups, or even sudden strong news).
🔹 After the rapid increase, it is often followed by a sharp decline known as Dump, where investors who bought at a low price start selling to realize profits, leading to a price crash.
⚠️ Caution is required! Some pumps are calculated and based on technical analysis and news, while others are planned to deceive small traders and lure them into entering at the peak, then exiting on them with losses! 👍
✅ How to benefit from it?
1️⃣ Do not enter in the middle of a pump! Wait for confirmation of the trend.
2️⃣ Monitor trading volumes and technical indicators.
3️⃣ Beware of entering unreliable projects.
💡 Trading requires a strategy, not just following random movements!
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