What are crypto pumps? How can you use a crypto pump bot as early pump coin detection? Free trial of Crypto Pump Detector. Easily scan for crypto pumps and dump
Crypto Pumps for Futures Day Trading
Many people are confused because of the many pumps that happen daily in the crypto universe. Below you see how a pump in general looks like. I made you an example for futures trading.
But these aren’t the crypto pumps that we want to detect with our Crypto Pump Detection Bot. Why? That’s easy to explain:
- If you want to detect random pumps you need to make statistical calculations and backtest settings to see if it’s really profitable.
- Backtests are no guarantee for future profits. Only because it worked in the past, doesn’t mean it works in the future.
- Crypto pump signals from pump and dump groups are announced. Hence we know up front when the is going to happen.
- The admins of those groups will ALWAYS buy first. It’s just part of the game. Their buying will make the price rise or “pump”.
This is what we want to detect with our bot. The pump detector is made for announced pumps and not for random pumps. If you have backtested such a strategy for random pumps please let me know 🙂
So, let’s continue with our crypto pump detector bot and how it works.
Crypto Pump Detection — How to Detect a Pump?
Crypto pumps are an attempt by scammers to trick investors into buying at inflated prices. They’re often done through social media posts that claim to show a new coin has been released. In reality, there’s no new coin, and the post is just a scam designed to lure in unsuspecting investors.
There are several ways to spot a crypto pump. One of the easiest is to check the price history of the coin. If the price suddenly jumps up, then there’s likely something fishy going on. Another indicator is when the volume spikes. This usually happens after the price spike because people are trying to buy as much of the coin as possible before the price drops back down.
How to set up a Pump Detection Bot?
A Pump Detection Bot is a trading bot that scans the whole Exchange for sudden price or volume movements or pumps and buys such coins. You can create your own or just use this pump detection bot from PumpBot. If one right you can make a lot of profits with this type of bot. Below you can see a profit made with our bots of 66%! ????
But be aware that the pumps work differently for the different cryptocurrency exchanges: Binance, KuCoin and so on. The pump detector scans the whole exchange based on your settings and will also buy coins according to your settings. It can happen that there are other coins that pump as well.
Conclusion
There are many pumps in the world of cryptocurrencies. And there are the announced pump signals that lead to a pump that we know up front. Our goal is to detect these prepumps and buy the pumping coins before the pump signal is send to the public Telegram groups.
