Strategy sounds like a good word. It sounds optimistic, thing for someone intelligent and also very dangerous, especially in crypto market. Strategy is supposed to work much more often than not, the reason why we use it. Although in the crypto market where the fundamentals of your investment is ZERO in most of the cases, having a good strategy is hard as the 100% value of your investment might just be SENTIMENT.
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Sentiment is the fuel which is driving the whole crypto market and it may sound like a small word but worth billions of dollars which is invested today in crypto market just based on this sentiment and hope.
It doesn't mean that strategy and sentiments do not go well together but in fact sentiment in a market is key to form investment strategies but where there is only and only sentiment in the market, it becomes a risky venture to apply a particular strategy. Instead proper word in such kind of markets by which one should trade is "opportunity". A market which is completely driven by sentiments is the one with whole lot of opportunities than a market with real fundamentals. Opportunity simply means a quick and huge spread in selling and buying prices during a particular period of time and that is how Pump and Dump works.
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A pump and dump strategy is purely a work of manipulation of sentiments. It is a trap for an investor who doesn't understand how market sentiments work and buys when the market is "high", Yes, alcoholic High. In fact, that is the actual time to do the exactly opposite thing i.e. to sell. The key is to recognise the pattern of pump and dump and hence use this "Opportunity" and this may be the only strategy you should have to earn profits and also not to loose your money.
Image source: google
In fact profiting from a pump and dump is the best way you can create money out of nothing. If you see the market of a particular item jumping extraordinarily without any positive news, it is generally a pump and dump. The key is, at what point to sell and at what point to purchase again. Well, it only comes from practice. Start with smaller amounts to recognise and use pump and dump opportunities created by others. Please don't create one, it is in fact an unfair "strategy" by the rich to manipulate the sentiments and take away a big chunk. Don't fall for the prey by buying at higher prices.
Please tell me in the comments below about what you think about the opportunity. Share your views and make others aware by resteeming it.
Happy Steeming.