Don't Believe The Trading Volumes On Most Exchanges

[anjohyx]

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

[Dexion]

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.

[TrevorS]

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.

[gabmen]

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.

[Script3d]

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.

[virtual_miner]

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

[akishang]

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.

[xialan_lu]

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.

[tycsols]

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.

[ataki]

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.

[Adunni6758]

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.

[hulla]

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 

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.

[CryptoGosu]

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

[qomariah95]

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.

[Pamahaw]

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

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.

[Hung Yu So]

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, which is genuine and worthy, then we will automatically avoid getting into wrong or ordinary option, where risk is always too high.

[ishirut009]

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

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 ?"

[Andruha1993]

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.

[ityandsyn]

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

       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.

[Aragorn_125]

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

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.