Because of the unregulated nature of cryptocurrency, pumps and dumps are inevitable. While most people fall prey to this volatility by either buying into the pump or selling into the dump, causing substantial losses when the price either retreats or recovers from the market manipulation. There are ways to know when a pump or a dump might be incoming, this article will discuss the various methods one can use to get informed about market volatility before it occurs.
Public Chat Rooms and Forums
There are a variety of chat rooms and forums available to Bitcoin traders looking to stay in the loop. Bitcointalk.org is the most popular forum, by keeping a close eye on the Alternate Cryptocurrencies section you have a better chance of getting informed about major upcoming price swings.
Furthermore, trollboxes on exchanges like Bittrex and Poloniex can also provide some insight into market action. While it might be the worst place for trade advice, those chat rooms are still a valuable information resource for altcoin traders.
Private Chat Rooms and Communities
Along with the public resources, there are also closed chat rooms. These types of private communities almost always require an upfront payment in order to join. This may put off a lot of people and rightfully so. Most of the time these communities simply want your entrance fee, and the information provided is usually unreliable.
Monitoring the Exchanges
For those of you looking to take matters into their own hands, you can monitor the popular exchanges by yourself. The problem with that method, is more often than not you will still miss out on major pumps. There are hundreds of trading pairs on dozen exchanges, keeping track of them all is impossible.
Yet another popular way to stay informed about future market action is through experts’ opinions. Bitcoin blogs, including The Merkle, often publish price analysis and write informational pieces that can help traders make more informed decisions regarding their positions. Another great resource is Tradingview, which has a plethora of charts with explanations which help rationalize altcoin markets.
Bots Which Analyze the Market
Last but not least, if you don’t want to sit in front of your computer screen with a dozen windows open trying to predict the next pump, have a bot do all the work for you and inform you of potential pumps. A great example of such a bot is CryptoPing. This is a telegram bot which alerts you of upcoming changes in volume or price and gives you a chance to get in on the action.
Using CryptoPing is easy, simply download the Telegram app on your phone, link it with your account, and you are set to go. The bot tracks every single trading pair on the top 3 most popular altcoin exchanges (Bittrex, Poloniex, and Cryptopia). When it finds an anomaly, it will send a notification to your phone letting you know of the change. This bot is currently free to use, but once the ICO phase begins on May 24th, it will switch to a subscription based model.
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