Bitcoin Pump and Dump Calls: Are They Still a Good Option in 2024?

Bitcoin Pump and Dump Calls: Are They Still a Good Option in 2023?

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pump and dump crypto signals
Some players do not give up trying to get the most out of cryptocurrency trading. There are a considerable number of trading strategies, each with certain features and risk levels.

Currently, the pump and dump schemes are popular tools invented by scammers to extort users' money. In simple terms, scammers, who can act as individuals or legal entities, artificially inflate the value of a crypto asset they own.

Panic purchase motivates traders to buy these assets in the hope of warming up their hands in the short term. By spreading deliberately false information, scammers thus inform ordinary users that a particular coin may rise sharply in price shortly. When an asset's price reaches the desired level, an initiator of a pump and dump scheme sells the entire volume of coins and fixes the profit.

Pump and dump crypto groups are channels that post signals on unknown crypto coins, which influence the price of a crypto coin with the low volume, and its value increases.
Since the end of 2020, cryptocurrency trading has become a very popular topic on media, news, and among existing advanced traders. These highly widespread talks create a big demand for crypto trading and investing.
Unfortunately, many newcomers when entering the market, do not know which ways of trading are really profitable. And they especially like channels that show enormous profits, which, usually, are these big pump signals. We would not day something against them if we knew they are really legit, but every person that understands the pump and dump schemes, will tell you they are absolutely not legit.
Safetrading lists about 20 Bitcoin pump and dump signals channels on Telegram, and there are no approved channels among them. The thing is that 99,9% of the crypto pump and dump Telegram is a special form of scam.
We call a big pump signal as “a special form of scam” because, at first glance, they do not block you after the payment, they add you to the VIP group where you see plenty of signals and results.
The question that bothers many people:
Is pump and dump activity illegal?
In traditional exchanges, this practice is illegal and strictly regulated by the government. However, due to the lack of governmental interference in cryptocurrency trading, many traders use it because they know they will not be caught. Also, most of the Telegram admins have nicknames and do not provide their real photos or places of residence, that is why it is very hard to find them in case you are looking for a refund, etc.
Nevertheless, there are many pitfalls in their activity, and below we will tell you why!

Short and Long-Term Pumps and Dumps

There are various dump groups, each with a specific purpose. However, all of them can be conditionally divided into long-term and short-term. As for the short-term approach, an asset is dumped over a short period. Most often, the organizers sell the entire volume of coins at a time, thereby bringing down the price, leaving gullible traders empty-handed.

A multi-stage approach characterizes the long-term option used by a dump group. Organizers use more sophisticated marketing approaches and, from time to time, buy back a coin in large quantities, thereby moving the price upwards. Long-term pump and dump strategies can consist of three or even more waves.

Meanwhile, organizers' main goal is to mislead an average user that the price of an asset is growing steadily and now is the best time to step in.

What Are Pump and Dump Crypto Telegram Signals?

how pump and dump crypto signals look like

First things first - pump and dump cryptocurrency signals look like the common crypto calls that are posted by experienced traders that are listed on Safetrading. So, it is going to contain:
  • Name of the coin;
  • Entry price;
  • Target price;
  • (we are not sure about the stop loss with a big pump signal).

And, of course, no one is going to tell you when to close signals, what is the risk percentage, etc.
But, these signals are not common because they have the purpose of giving profits to the person that published the pump signal, but not to the common traders that use paid signals for trading on an exchange.
During our experience with crypto traders, we noticed 2 most common schemes with pump and dump crypto calls, and we will tell you more about each of them below.

Pump And Dump - The First Popular Scheme

Let’s go through the first type with the example of Crypto Kirby.
If you message them to buy a cryptocurrency pump membership, you will get the message with their very bright and friendly welcome message and, what is more important, unacceptably high membership costs.
crypto Kirby scam pump and dump

If you are the beginner-trader aiming at huge profits, you will more likely think that this admin is really very friendly and he is going to guide you through your trading process, and you will be interested in this channel no matter how high the VIP prices are.
As we told you before, the target audience of pump and dump Telegram channels are newcomers, so, let’s imagine, they subscribed to the channel.
Then, in a couple of days, you will receive a message from a pump group saying:
“We have a very profitable pump signal, but only some users can get an opportunity to take part in it. To be one of those, you need to send 0,1 BTC to this wallet, and then we will send you your money+received profit back.”
You may think:
Haaa, and then pump group users send the money and never receive it back!
After the first payment they do receive the money+profit, but they receive it not because the service is really fair and legit but because this is a psychological technique.
In a couple of days the admin writes to him again, sending the same message but the different amount of BTC - the higher one. Usually it starts from 0.5 BTC. And they promise the same - to send back the money and final profit.
A user, because he knows that last time they sent the money back, feels okay to send them more to receive higher profits. After the second big payment, users usually do not see their money returned.
This Bitcoin pump and dump scheme is “about pumps”, but actually the admins of such groups only claim they have some cryptocurrency advice to share with the audience, but in reality, they simply scam newcomers by getting their trust first.

Pump And Dump - The Second Popular Scheme

pump and dump Telegram channels

The second pump and dump signals scam is really about pumps - the special signals that traders use to receive profits from cryptocurrency trading.
You subscribe, and then start to trade with the help of their signals.
But those pump group signals are not for you!
How is this possible?
Actually, it works like this:
The admin, his friends, etc. want to earn some money. They start to promise that soon they will post a huge pump coin. They write the names of those coins, the time of publishing the signals.
Then, before posting the signal, they buy a certain coin at a very low price, and after that, they post the signal.
Usually, such groups have many paid members, because they set low prices or sometimes are even free to join!
The more people buy this coin, the higher the price of it will be because of the increasing demand, which makes the cryptocurrency market to act and push the coin’s price up.
Very simple.
Let's say coin LINK has a small market cap and a relatively constant price. The best crypto pump gives a pump signal and indicates the target price. Relatively small injections are enough for the coin to move the price and draw the attention of real investors to it, who will no longer invest in response to a signal.
Only the best crypto pump admins and 1% of paid members are lucky to get the profit. Other people earn nothing, because usually pumps are very fast, the coin can gain +500% in minutes, and then it will see the bottom.
And as many traders wait till the coin will cost more more, in the end, they are in a huge loss because pump coins are very weak and can not increase with no outside interference.
And you are lucky if the group is free to join and you will not waste your money on the subscription!
In general, here is the plan of their activity aimed at generating significant profits:
  1. The create a Telegram channel with many subscribers (usually more than 50,000);
  2. They prepare all the important information (rules, instructions for pump signals, etc.);
  3. They choose the coin to buy - the one with a very-very low liquidity;
  4. They choose the time of publishing this big pump group signal;
  5. They warm up their members (promise high profits from the next pump, write the time of publishing, make many promises, etc.);
  6. They the channel’s admins buy this coin;
  7. They post a signal and thousands of people buy the coin immediately;
  8. Then the price of the coin increases in a couple of minutes;
  9. Admins of the channel sell the coin and earn profits, and their members are left with the big amount of doubtful coin that will never increase again.

Crypto Signals You Can Trade With In 2023

Very often we receive questions from users who are very surprised that we list all of the pump and dump channels as “scammers”. We understand that not everyone knows the real sense of dump strategies, so we explain everything and advise legit and profitable channels to work with.
Below I will provide you the list of good and reliable crypto traders who will not only save your money but help you to earn more of it!

Crypto Classics

This is a reliable group with a team of experienced traders behind. The channel is considered one of the best groups that are listed on Safetrading for more than a year.
These guys offer Binance signals with good quality and quantity. The channel also works with Cornix, which means they support auto trading, and you are not going to miss the signal.

Fat Pig Signals

This free group is also very good, and the signals have very high quality but you will not see 2-3 of them every day - these guys think about quality at first.
Also, considering the high profits, they have quite high prices - you can view the list of them on the Fat Pig Signals page on Safetrading.

Alpha Trade Zone

This is one of the rare channels that operate on Discord. Unlike Telegram crypto pump scammers, they are very responsible and always guide traders, so as all the other approved traders listed on Safetrading.
With AlphaTradeZone, you can trade on Binance, Bittrex and ByBit, which means this channel is a good choice for people who like to use leverages.

Onward BTC

This channel is the best for people who trade on BitMEX because Onward BTC is fully focused on signals for this exchange. It's a great alternative to crypto pump and dump groups.
The membership fee is very low, and the results of the channel are good. Also, Onward BTC will be a great choice for German people because they are from Switzerland.

Final Thoughts: Is It Profitable to Trade With Pump and Dump Signals?

Today we discussed the process of pump and dump Telegram groups activity. Now you know that there are two main schemes Telegram crypto pump scammers use to earn money - the first one is a typical but psychologically managed scam, and the second one is the process of how almost all the pump and dump groups work.
We hope that this article will help you understand that pump and dump groups can not give you a permanent source of income, and they will not give you a good trading experience for sure - you will only waste your time and money.
That is why on this page, we list our approved channels not to give the pump channels the opportunity even to be seen by newcomers who can trust their fake results and promises.
With our legit traders, you will be able to form a permanent income and build your own strategy that will serve you successfully for many years.
To remind you one more time, will give you the list of successful channels that are listed on our platform:

So, as you may say, Safetrading is completely against pump and dump Telegram groups because the goal of creating a cryptocurrency channel on Telegram is not the admin getting the high income but crypto traders that are guided and helped earn money and get experience. In this case, closed groups are not a solution.
Guys, we will always recommend you to work only with checked, approved, and trusted traders - this will be the biggest happiness for us to see you succeed. Do not believe “1500% profit results” on crypto pump signals Telegram - they are posted only to gain your trust. Trading is profitable, but regular experienced traders know about risks, and they will never promise you something or will never claim they have only profits but no losses, etc.

Frequently Asked Questions

  • How Do You Spot a Pump and Dump Before It Happens Crypto?
    • Services offering such services use specialized software. For example, a trading algorithm or bot reacts with lightning speed to a sharp and unreasonable increase in the price of a coin and informs traders.

      If any altcoin has seen a sharp increase in price by more than 5%, a Telegram group administrator immediately informs all subscribers about such a signal. However, the accuracy of such signals is still poor. What's more, Safetrading does not recommend risking your hard-earned money to profit from pump and dump signals.

  • Is Pump and Dump Crypto Illegal?
    • If we talk about the United States of America, then pump and dump signals are considered nothing more than a scam. Therefore, be careful with services that offer similar services. Perhaps your personal and financial details will be used by a third party for fraudulent purposes.

  • What Does Dumping Mean in Crypto?
    • Pump and dump is a type of fraudulent manipulation of the price of crypto assets. First, fraudsters artificially inflate the price by spreading misinformation about a possible change in the price of a particular coin. After that, dishonest providers begin to sell the coin that has shown a sharp rise in price due to the increased demand from the crypto community.