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I tried a pump-and-dump. Now I know why they are for suckers.

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I lost $150 in my first pump-and-dump today.

It was a worthwhile purchase of experience, and I'd like to share my insight with you to save you a few bucks.

Doing the math, if someone artificially inflates the price of a coin by buying it all up quickly, in order for them to profit, then someone has to buy what they are selling at an inflated price.

If the price goes back down to it's previous rate, without anyone buying high, then the net profit is zero.

The only people who will buy at market price while the place is inflating super fast are...the newbies trying to get in on the game.

Here's the thing about playing a rigged game - if you aren't in on it, you're the sucker.

I decided to risk being the sucker today. I joined a big pump-and-dump group on Telegram, got some bitcoin in place on Binance, and waited.

When the announcement came, I bought it in under 3 seconds. Searched the coin, made my order, and bought.

The price dropped. I had bought at the peak. I sold quickly to minimize my losses, and I learned.

If you were the organizer of such a group, what would you do?

Buy up the coin first. Get the pump started. Announce it a moment later, so everyone trying to get in will buy what you are selling. You need those buyers.

Think about it: without the crowd rushing in, the price falls back down naturally, because NOBODY IS BUYING AT A HIGH PRICE for no reason. The only ones with reasons to buy high are the suckers trying to get in on the game.

Lesson learned: if you aren't doing the pumping, you're going to get dumped on.

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