Pump & Dump Protection Switcher: A Step Ahead in Your Trading Strategy
We're introducing a brand new platform feature: Pump and Dump Protection Switcher.
Your crypto trading strategy is never complete without the right protection features in place. Like any other form of currency, cryptocurrency can suffer from market fluctuations, called pumps and dumps, that can cause your profits to evaporate instantly.
These abrupt price changes are unpredictable and difficult to plan for, but they don’t have to be damaging to your bottom line if you know how to protect yourself. That’s why we’re introducing the Pump and Dump Protection Switcher feature to our premium services and why we want you to learn how it works with our helpful tips!
What Is a Pump and Dump Scheme?
In general, pump-and-dump schemes occur when speculative investors use misleading information to artificially inflate the price of a cryptocurrency so they can sell it at inflated prices and make money. Pump-and-dump schemes happen most often when there is little to no transparency in the market for cryptocurrency investors to buy coins.
How Can You Avoid P&D?
The solution to this issue is Pump and Dump Protection. It prevents your bot from buying too high, should a pump occur. Additionally, it also prevents selling too low should a dump occur. This means that even if you were asleep while watching your trading bots do their thing, they will never buy too high or sell too low.
Our P&D Protection Has a New Feature
Our bots already have built-in P&D Protection. But due to requests from our users, we have included the ability to disable this protection (and enable it again): Pump & Dump Protection Switcher. It allows the more risky traders to benefit from the fast-paced environment of high-stakes trading.
Please note that trading on Pump and Dumps may come with high-profit margins, but the risk of instant losses is also very high, especially on volatile pairs.
How Does It Work?
The Pump & Dump Protection Switcher is available for the Custom Grid bot (in the new interface), as well as Sbot and Classic bots (in the old interface). If it is active and the price moves rapidly, the bot will detect it and change the bot status to either Pump or Dump protection, depending on which one you set your preference as.
The P&D protection is activated on bots by default. Now, you can also toggle P&D protection on or off at any time during the process of setting up a new bot. You will see this option in the right pane, among other bot settings. Even if your bot is active, you can turn P&D protection on or off at any time.
For more information on how the Pump & Dump Protection Switcher works, please visit our Help Center.