The cost of artificially pumping a low volume altcoin: pumping the alt markets by yourself with the BTC/LTC “pump machine” strategy

For this article we regard ALL prices in crypto-crypto units, and unless otherwise noted, denominated in units of BTC. Therefore bitcoin costs 1, LTC (today) costs ~.009 BTC/LTC, etc…

I have noticed there is a way to burn bitcoin in order to raise the price of an altcoin, assuming low volume, and assuming there is a secondary market, such as LTC, on which the coin is trading. I call it the pump machine. It goes as follows:

Method of spending BTC to temporarily pump the bitcoin price of a low volume coin, which will be denoted SHT:

1) Suppose you only have 1 BTC

2) Buy as much SHT as you can with 1 BTC

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It doesn’t matter what coin SHT represents in this example, but I choose DRK because I will soon describe trading coins which reach price parity with LTC, and why that can be very good.

3) Go to the LTC/SHT market and sell all the SHT for LTC. Now you have a bunch of litecoins.
Casually sell the SHT for LTC.

4) Go back to the BTC markets – this time, the BTC/LTC trading floor. Take the LTC and sell it for BTC. You’ll now have a bit less than 1 BTC (most likely).
Get bitcoin back…

5) Now that you hold BTC (perhaps a bit less than 1) go back and pump SHT! Buy .9887 BTC worth of SHT, rinse and repeat.  If the markets are dull enough, you can make it seem, for a while, like more bitcoin than you could possibly spend on SHT is buying the SHT up.  In the end you’ll pay for this deception, but in the short term, it’s a pump machine.

6) Continue the cycle. Watch your bitcoin stash go melt away slowly as you literally pay to pump the price. It’s a bit like a carnot engine.


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Coming soon: the advantage of trading an alt which has reached price parity with LTC. Complete with math.


It may be time to buy some LTC again. Here’s why. The golden rules for altcoin trading.

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Litecoin price in BTC on the btc-e exchange, for as long as can remember. We are at about all time lows.

This blog post is a glorified (with some images and minor changes) copy pasta of my post on /r/cryptomarkets.

LTC – how low can it go? It might be time to take a shot with LTC for a potential bitcoin profit.

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Past performance is no indication of future…oh whatever. Let’s get some LTC. 1) it’s old 2) its inflation rate is very slow 3) it’s not bitcoin 4) historically speaking, this is an OK price.  5) LTC enjoys special status in the cryptocurrency world as a secondary market, and should always be watched out of the corner of one’s greedy eye.

I have done this with LTC a few times – the best of which was last November. Priced in BTC, it is now near parity with DRK and below .01 … which isn’t far from the price I think I paid for a bunch of LTC right before the boom in November, when I started writing about trading in /r/cryptomarkets with “the golden rules for alt trading.”

One thing that makes LTC different from other scrypt alts is its very slow ditribution – it’s just as slow as bitcoin. To me, that makes it still attractive as a swing trade, because big investors are probably thinking about it. What do y’all think?

BTW, just looked. I decided to buy lots off LTC last year at .008, and it’s not far from this mark. I wrote the golden rules to this sub from a 5-star hotel (I don’t stay in those) thanks to that trade. Good times…