Bitcoin Forum

It would seem that "Wash Trading" is a much bigger problem than originally thought. Wash Trading is the buying and selling of coins by bots on the exchange to artificially create volume and the perception of liquidity. A new study shows that only 3 of the Top 25 exchanges trading Bitcoin according to CoinMarketCap are actually presenting true figures. https://cointelegraph.com/news/report-claims-over-80-percent-of-top-25-btc-trading-pair-volumes-on-cmc-are-wash-traded

Yes, I agree with your point of view, but this fully demonstrates that the cryptocurrency market will now rise again, because no investors buy coins, the exchange does not have any profit now, only bitcoin takeoff will allow investors to enter the cryptocurrency market.

It is probably based on a troublesome research published a few weeks ago. Proportion of wash trading volume is especially scary in low volume and Chinese exchanges  :-[

Oi oi, what are you talking about?
did you even read the thread or just spouting nonsense here? we are talking about 'Wash Trading' or 'Fake Trading'. It has nothing to do with market or something like that.


Yes very true about this, look at Tokok exchange for example.
they have a lot of transactions daily(based on their volume), but until now I have yet to see it on Coinmarketcap. Plus, they are constantly making a trade without an actual order.

Trading volumes can also be manipulated, because there are a lot of trading competitions currently ongoing and due to that fact the trading volume is pretty big, but as soon as the promotion ends, the trading volumes decline dramatically.

I cannot agree less, it is even seen that some exchanges has this manipulative pattern of inflating trading volumes and sometimes price, I know hotbit to be guilty of that and this was complained by the CEO of the coin that got listed there.

I'll tell you I can surely put down a lot of volume on a 0% fee exchange, and with a little bit of margin both ways, look out..

I wouldn't completely discredit volume on 0% fee exchanges like CMC does..

Sure it makes it easy to put down a lot of fake volume if you are a whale and don't mind eating all the small trades inbetween, but with no fees on non-leveraged positions a person can make tons and tons of little trades that add up to something.

yes when in intial stages in crypto i believed to trading volumes and i lost lot of money too but now i never trust the trading volumes on exchanges.

Do many people pay attention to the volumes on exchanges rather than the actual movement in prices? It should look suspicious if there are large volumes traded but little or no movement in the prices.

There are some chances of adjusted volumes still contain fake volumes too. Look at bitforex that was a horrible exchange site i have ever seen in these days. Chinese exchange that doesn't apply trade fees can be manipulated to easily.

yes we all already know it all for a long time so it's not a surprise for me or for all of us,
because of that I only like trading in binance and don't like other exchanges especially hitttc which even the fee is very high.

I haven't think of that before, thank you for sharing that. I haven't think of something like that it might be true that most of the exchange are using bot in order to manipulate the volume of an exchange.

We might need to check the legibility and credibility of the exchange on where we're going to put our tokens and coins. We are not also sure that there's an existing bot in some exchanges right?

yes that's unfortunate. There is a lot of fake volume in the stock market. I think exchange have a method of choosing to attract them. purchase-sales orders take a very long time to take place. most of the times you place orders under or on the order is entered. I think that these types of exchanges should not be used.

very helpful information that you provide makes us understand the crypto world and increase our awareness of investing in exchanges which are good and not good and know about trade laundering.

I'm not sure there are exceptions. It seems to me that absolutely all exchanges are doing this. Perhaps the degree of overestimate is different. We often see high in the ranking of new unknown exchanges. Of course, their high volumes are a hoax. But at the moment, the crypto market is at a similar low level. The low level of regulation allows manipulation.

Only a fool will do, there was a time I wanted to sell some tokens on IDAX and the current buy order was what I tried to sell but the order was not filled, I tried a lower order, the order wasn't filled also, look at exchanges like Exrate and  Bitforex which are two others that I observed these activities of wash trading. Something need to be done to clear out these bad actors the earlier the better

each time you buy or sell, there is a fee to pay unless you are talking about some Chinese 0-fee exchange which no longer even exist. so in my opinion calling it "wash trading" does not make any sense. and whales don't waste their money like this when they can simply pump a shitcoin with the same amount of money without hassle.

Indeed, I have tried to avoid depositing a single satoshi to Bitforex exchange. Unfortunately, there are more of similar exchanges.

23 Out of top 25 volumes are faked. Make out #3 and #4 and we're left with 21 exchange I haven't even heard of.
I stick to Binance, Poloniex, Bitmex and Coinex.
The rest is scam territory

too many problems in crypto now start from fraud ico and now Fake trading volume on exchange.

oh shit the beauty of this investment. how can new investors believe if something like this already exists fraud.

It's easy to find out which exchange trading volume is fake, I'll check the website world ranking, daily high trading volume that's mean high visitor traffic and high website ranking, another one is go to website check their trading pairs, just a bot auto create the fake volume, so I only use well known exchange and protect my funds

I think this is cheating, they use bots to analyze the market, they don't work alone.

Robot technology makes applications run on their own following market volatility.

but, it will not run for a long time, trading with your own analysis is better.

I do not believe. It has long been proven that 70% of trading volumes on the largest exchanges are fictitious, therefore if you turn off bots, the price will fall, and this has already happened several times.

Well it can happen both ways also though. People may become a little hopeful seeing volume accumulating hence they may decide to join in or decide against selling. Of course there's always the possibility of a trap but it can also mean something good about to happen.

people should start ditching exchanges who fakes their volume, i don't know probably the exchange will steal traders coin, also they will make artificial price aswell, probably, better safe than never just switch to binance or other exchange that's legitimate.

This is normal and I have known it long ago, when I trader my coin on Bit-Z. I wonder why there are some order on history not on the sell and buy frame. And when I received some token from the bounty, I also noticed this common point from some other exchange

I don't think exchanges are allowed to provide false figures. However, if this is true, then a lot of people were being fooled and were being forced to sell their coin at a very low price. I sell my coin based on the trade volume and its definitely affecting how I decide if a coin is for hodling or not.

They use dirty ways to attract traders by making trading volume look bigger. Maybe also some cases of hacking that have happened are their own actions (internal factors) not from external factors. So that I think the decentralized exchange is the best.

That is why there is a need for a regulator for all these crypto exchanges that can atleast stop the wrong doings of all these exchanges and save the common trader and investor from losses, if all the forex brokers can be regulated i do not think there is any problem to regulate crypro exchanges and i wont even mind if the same regulators watch these exchanges as well.

It is true that many projects  ( especially new ones ) doing the market making, providing liquidity to the coin and they are using bots for it. It leads to artificial volumes which has nothing to do with the reality.

I have always noticed it too, because so many of those exchanges use bot. The result on the table from the link has out more light into it and i am amazed by what i am seeing.
It gives us more insight on how to go about our trades.

The last time I checked the Chinese government place ban of crypto currencies trading and the exchanges that operate in China have moved to another crypto friendly countries. With that been said, the Chinese have been accused of false trading volume and manipulation back in the 2016 when bitcoin was not ban by their government. Besides, the Chinese are the only one guilty of this because capital market was once either.

I think that high-frequency trading is gaining popularity and it is not surprising that they use bots that make a lot of transactions.

Indeed, we should not fully believe in trading volume. Because usually there is an exchange that manipulates the volume of all coins. Which results in losses to people who trade. So before trading, we must be careful. Because this will be very fatal which makes you lose in trading.

As a part time trader i also sense that there are bots trading on some exchanges and it is really frustrating for me. That is why i move to Binance to test my skills on trading sans the bots and i am glad that Binance is one of those exchanges that don't do wash trading.

It’s sad but I do agree that this is a very much realistic thing. This is where we need to be science and use common sense to understand the actual picture. I am not sure how much I can help, but I say it is something that can help. Once we track down the Crypto Exchange data (https://cryptolinks.com/crypto-exchange-data), which is genuine and worthy, then we will automatically avoid getting into wrong or ordinary option, where risk is always too high.

I couldn't agree more. I have noticed that too, the volume is big but the price remains the same, i dont get it. Now it's clear to me that some exchanges is just manipulating the volume. Now it leaves me a question on, "how can we able to prevent exchanges from doing that ?"

Yes, yes, I saw this. I won’t talk about what kind of exchange it was in order not to advertise it, but once I placed an order to sell a token and nobody bought a token from me. But the trades (purchase of a token) were, and moreover, at a price that was higher than I set. I was very surprised by one thing and I stopped trading on this exchange.

       This should be ban so that trading site will shortened  then only legitimate and reliable exchanges site will operates for crypto industry because this irregularities of trading sites may result losses of investors since they will be mislead of their analysis.

Usually, if this is a normal exchange, then it prevents trade bots from entering the market. And once this is happening, it turns out that already the exchanges have become fraudulent.

We only need the decentralized exchange site to fix this problem, bunch of people are creating more and more centralized shitty exchange site and then they are manipulating it.
DEX is the only way for us to fix this problem.

well, therefore, we need to avoid exchangers that are not well known, and do not have the relevant regulations. well, i just always exchange my assets in large markets like binary and others. I'm sure the volume is not manipulation.

Yes, this is their illusion. In the long-term recession of the cryptocurrency market, there will be no new investors entering, so in fact the exchange is still losing money, only 1-2 exchanges can do it. There is no loss, so the exchange will buy a lot of coins. Let the cryptocurrency rise again.

Some mainstream exchanges are still real, but many new trading platforms use fraud to attract traders, so I think the crypto market needs to be regulated.

My opinion is now firmly established in the fact that during the trade in the first place is to study the news and that capitalization can only confuse and not show the real situation in the market.

Yeah, this is common practice by some phishy exchanges they are trying to make impression for people that hey our exchanges is already have good liquidation come here but actually that's all fake unless the exchange itself giving the buy wall which can be considered as fraudulent aswell.

While there is no regulation of the crypto exchanges there always be the case of wash trading and other illegal stuff

Completely agree with this .lots  of these Exchanges consists of fake volumes . This is never good for the long term development of Blockchain Trading. We are decentralized and the trading eco system of that should be clean and fair always.

Many exchange are just creating a large volume for trade in other to claim one of the best as the situation of the market is , there a lot of manipulation going on in the market which is much why we are seeing lot of fake volume by some exchange , and non of the exchange can be trusted as all do use bot to trade for more volume.

I think all exchanges small or big ones are making fake volumes with bots. It may seem like a good thing, but it's totally foolish. But i think this is the easiest way to attract customers so this is not going to end.

There are many exchange website who fake their volume.
You can see one token in an exchange that is doing buy and sell every split seconds.
This is automatic and you can't even see the sell or buy orders but it went to the trade history.

I don't believe to those metrics. In most of cases they have own market makers and make liquidity and put on trading bots to show volumes!

This is sad but this is true, I have recently tried to sell UPP on Bibox, coinmarketcap shows volume of millions dollars, but when I placed order below market price, nobody bought it during 2 days, but bots sell each other small orders all the time.

Well if that happens so, there might be a possibility that they can control the money in the cryptocurrency space resulting to lessen the trust of people in investing their money to it since there are bots that can manipulate it.

This has been going on for a long time but people don't know, I got to know about fake volume on exchanges when I participated in Bitdepositary Q-ratio ICO and the CEO Tobias accused hotbit of using fake volume, so he insisted that hotbit should delist it's token on the exchange and to me that is a scam, I hope scam can be reduced to barest minimum or eradicated completely

What does the exchange earn? The exchange receives a percentage of the transaction and the amount for the filled coins. Of course, they will provide fictitious information or create artificial trades just to get more money from the projects, and from all those who use the exchange.

Chinese exchanges were faking volume from the start. When Huobi and the rest were created years ago they had a lot of problems with Chinese regulators. We can expect that this is still happening, especially on some smaller exchanges with high volume. This is not that difficult to prove and in time will lead to wash trading exchanges being exposed and weeded out of the market.

Yes, this is absolutely false. The cryptocurrency market is very low and there are almost no coins to buy. The continued decline in the market will not make people risk investing in buying, so only the market recovery transaction can change the trading volume of the exchange.

I completely agree.  Now all the exchanges artificially increase trading volumes as a result of such a market!

It must be acknowledged that crypto users are very easily influenced by various news, even with daily transaction volumes that can make people's decisions change, of course people will focus on large transaction volumes so they also follow trends and I suggest not to believe that.

I believe that you gave us the right instructions. Most of the time I only want to trade on mainstream exchanges because they are safer.

The article says only 2 out of the 25.


Well its all for the media games though. Even if we believe it or not, nothing will ever change to it, bots are being used to trade by pro who bought trading EA. This includes the arbitrage bots. I think it also happen on other markets like the stock and FOREX.

Including binance, houbi pro and okex exchange are all wash trading.. the most legit exchange volume today up in the crypto space is still bittrex

South Korea's Biggest Crypto Exchange Allegedly Faked $250B in Orders

https://cryptomenow.com/south-koreas-biggest-crypto-exchange-allegedly-faked-250-billion-in-orders/

Same thing with Upbit, one the top Korean exchanges.

I have noticed this most especially in many of the new trading platforms. probably they are doing that to attract more people to the platform.

I also heard about those bots that can really control the volume and liquidity of an altcoin. In my opinion, we should choose a good trading platform or exchange in order to be safe about this incidents.

Not on the new only. As I saw in the investigation recently it happens on the all big exchanges exclude binance and bitfinex. Watch on the order list. Do you think many orders with 1-2 tokens are real? No doubt it's a bot

This is been a known problem for a long time, people are going to choose naturally the exchanges that have the most volume, so exchanges have all the motivation to lie about the money that is moving through their system because they want to be the exchange that has the most volume so they can attract the most clients and to be honest I do not really see a solution to this problem.

This is really sad. even all those exchange that naturally people will think they are very transparent and fair. all this make me even begin to think there maybe more to this in term of shady business these numerous exchanges might be into. money laundering etc.

I agree with you that many exchanges use false data to attract traders to join them, but I think there are many real and reliable exchanges, such as Binance.

Yeah when I looking for some exchange I figure out a lot of exchange do fake trade and bot. That means their volume is fake and just manipulated by them or by big player.
Only little exchange who have fair volume trade and not doing fake trade.

The amount of regulation in the market of cryptocurrencies is low and it is likely that is going to remain that way for a long time because exchanges are going to try to avoid to establish themselves in countries which have very heavy regulations against them, so while we do not have proof about the wrongdoings of exchanges it is quite likely that some of them are committing some illegal activities.