Newcomer to crytopcurrency trading. Questions regarding "pumping and dumping" money into currencies.
Hi I’m new to the concept of cryptocurrency trading and find it very interesting. I’m in the process of doing as much research as I can. I had a couple of questions when it comes to trading cryptocurrencies. What interests me is investing some money in lesser known up and coming cryptocurrencies Which of course comes with a lot of risks. For example; FedoraCoin. It's worth 0,0001 US Dollars at the moment and the value has been going up 1000% in the last 24 hours. Now I was wondering if it would actually work if you would "pump and dump" your money in a coin like this. What is the catch?
Let’s say the FedoraCoin you invested 1000 dollars in, increases in value with 500% in an hour. It seems to me that a lot of people would wanna sell their FedoraCoin for dollars or Bitcoins.
The main issue I see here is when you sell it on a site like Bittrex, that it takes very long because a lot of people are selling their FedoraCoin. Wouldn’t there be so many sells that the website can’t process them all and while you’re waiting for it to finally work the coin has decreased a lot, or even worse: crashed? Is this a possibility and a risk people take that is part of the whole cryptocurrenceis trade? Or is this an unlikely scenario?
Another bad scenario: what if you sell your coin on Bittrex and the value of the coin is decreasing WHILE the sale is being processed. Is this a possibility or is the amount final once you made the sale?
Final question: Is there a limit in the amount of coins you can buy? Let’s say you want to buy 10 million fedora coins because the price per coin is very low. Is that even possible? Or would Bittrex or another site limit you?
thanks in advance for helping this newcomer
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