What is Pump and Dump in Crypto Trading? Explained!

Pump and Dump is manipulation practice used by project developer where group of investors buy coins to raise the prices and market cap of coin. Once the target is achieved, they start selling it. Buying called Pumping and selling it is called Dumping.
Those who get mid entry in Pump and Dump session can enjoy maximum benefits of price volatility and those who come when the coin is pumped at its maximum, have to bear big (A really big big) loss.

Pumping and Dumping happens with those coins who are not able to sustain required market cap to being list on Bittrex. Bittrex gives warning to those coins who are having a really low market cap, to save their position on exchange. So, the developers of the coin initiate Pump and Dump which increases market cap of the coin for a time being, thus some investors gain profits while some are trapped. But, at the end coin's position is saved.

Never get attracted by the insane profits made by Pump and Dump. While investing in cryptocurrency always play safe. If the coins in which you are investing, hold a solid future and have some real time uses, sooner or later (Within a few months) the time will come for every potential coin.

If got any doubts about Crypto Investment, you can ask me in comment section!

Thanks for reading!