However, once the group has successfully pumped up the price, they will often sell their holdings, causing the price to plummet and leaving latecomers with devalued assets. This is known as a "dump."
It is vital for crypto traders to be aware of the signs of these schemes and to exercise caution when considering participation in a pump. One key indicator of a potential pump-and-dump scheme is hype and sensationalization to manipulate investor sentiment and drive demand for the coin.
How are Pump Bots helpful in Pump & Dump?Another way to protect yourself from pump-and-dump schemes is to use a pump bot, which can help you maximize your profits from these events.
These bots can be programmed to follow specific strategies and rules, helping you make more informed decisions about when to enter and exit a trade. However, it is essential to carefully consider the pricing, supported exchanges, success rate, and other features of different pump bots before deciding which one to use.
5 Best Pump Bots for Crypto
1. PumpBot:
PumpBot can be used on a virtual private server (VPS) or a computer to trade cryptocurrencies on various exchanges, including Binance, Gate.io, KuCoin, and Hotbit. It gets its trading signals from Discord and Telegram pump groups, which are online communities where people discuss and coordinate buying and selling of cryptocurrencies. The starting price for using this bot is $29 per month.2. PumpSniper:
PumpSniper is another pump bot that can be used to trade cryptocurrencies on various exchanges, including Binance, BitMEX, and Kraken. It has a user-friendly interface and can be purchased for a one-time payment of $449. However, it is relatively expensive compared to other options.3. BeexBot:
BeexBot can trade cryptocurrencies on various exchanges and has a user-friendly interface with customization options. It can be purchased for a one-time payment of $1800. However, it is also relatively expensive.4. MoonShot:
This pump bot can be used to trade cryptocurrencies on Binance, Bittrex, and Bitfinex. MoonShot has a user-friendly interface and customization options, but it is known to be slow compared to other bots. It can be purchased for a one-time payment of $350.5. PumpWinner:
This pump bot was available for purchase with a monthly subscription of $50. It offered a user-friendly graphical user interface (GUI) and customization options. However, the owner is currently offline, and the bot is no longer available for purchase. It is also considered less competitive than newer pump bots, with faster execution and more user-friendly interfaces.In Conclusion:Using a pump bot can give you a significant advantage in terms of speed and accuracy when participating in crypto pumps, allowing you to place your buy and sell orders in a matter of seconds and increasing your chances of making a profit.