Before you buy into a new crypto that people are hyping up read this.
Most of them are P&D schemes.
What they do is a big group coordinates on a coin to pump up and they buy right from the start at an extremely low price.
Then they run around on facebook and other sites and yes some of them even come here and they hype it up trying to get people to invest.
Once enough money is in they coordinate and all dump at the same time before most will even have time to react taking most of the wealth of the people they conned.
This is highly illegal in the stock market but since there is no regulation in crypto trading they get away with it for now.
Bittrex one of the currency exchanges locked a bunch of these con artists accounts because it’s getting out of control.
This one of the main reasons the SEC will probably end up regulating crypto fairly soon.
Creators of these groups usually scam the other 90% of the group.
The creators usually buy the coin ahead of time over several days before they announce to the rest of the group what coin they are pumping so the chart doesn’t spike too much and make the group suspicious.
If you could read the small spikes then technically you could beat them at their own game but you would have to be extremely aware of what’s going on.