How Many People Are Really Trading Cryptocurrency?

[jonathan6655321]

I found this article extremely interesting. It raise some solid points about How Many People Are Really Trading Cryptocurrency.

There's a lot of fake data in the market so finding reliable data source is pretty difficult.



After a disappointing 2018, crypto markets are booming once again.

Backed by institutional investors, growing numbers of individual enthusiasts, and broad support for its underlying technology, the blockchain, the entire crypto sector is seeing a resurgence.

According to data collected by CoinMarketCap, the collective crypto cap has nearly tripled since the start of the year. Led by Bitcoin (which has also tripled its value since its low point in 2018) cryptocurrencies are outperforming many other investment assets, including stocks, bonds, gold, and oil.

For those who witnessed crypto’s meteoric rise in 2017, this year’s activity might seem incredibly familiar.

Naturally, now that cryptos are once again an intriguing investment vehicle, exchanges are experiencing a deluge activity. Daily trading volumes have exceeded $70 billion, up from just $18 billion at the start of the year.

At the same time, some are questioning the legitimacy of this data, contending that it may be exaggerated or overblown. With individual and institutional investors alike flooding into crypto markets, now is an excellent time to evaluate the trading landscape and to consider how crypto trading really gets done.

Most importantly, it’s the right time to evaluate how these factors can help investors capitalize on the most recent crypto boon.


Full article here
https://www.cryptohopper.com/blog/240-how-many-people-are-really-trading-cryptocurrency

[pakhitheboss]

Exchanges have been manipulating with fake volume data for a long time. There isn't any mechanism in place to track the actual number. I read in one of the topics on BTT a few days back (I think it was in the month of May) that Coingecko will be introducing a Trust Score to combat Fake exchange volume data. How successful it was? I do not have any Idea.

At least a small website like Coingecko is trying to resolve this important issue. Whereas Coinmarketcap has done nothing.

Coinmarketcap can actually add something like this based on the user experience on their own website. I know there are many loopholes in such a system but, still, they can initiate something like this as they are more known in the crypto community.  

[pooya87]

looking at 3 random exchanges that don't even have a bitcoin (versus fiat) market is hardly a good metric to talk about the entire cryptocurrency market and specially a topic that is worthy of posting in the "bitcoin board". if you want to talk about altcoin fake volumes them move this to the altcoin board.
not to mention that all these percentages are the guesses of these companies that were trying to make a name for themselves, practically advertising their services by bullshitting about exchanges and their volumes.

[Vaskiy]

There are fake volumes to show them among the top list of exchanges available for trading cryptocurrency. This came to light years back when an inspection was made by people's bank of China, and by that time market fell very low due to the same. I use hitbtc for my trading needs of few coins that are listed to it. Though it has got low trading volume, the trade used to get accomplished. This way they're good to trade, but they might add more volume to keep them on the top. Everything into blockchain will give transparency in this regard.

[Anthony596]

Anyone user help me to invest in Cryptocurrency. I have to start trading in Cryptocurrency, I never did before TelltheBell and I am new here. ANYONE Helps?

[davis196]

We will never know the exact number of people that are trading crypto.Many people use trading bots,the exchanges are faking volumes and many people trade crypto outside the crypto trading platforms.
The only solution to fight the fake trading volumes are the decentralized crypto exchange platform,where every transaction will be transparent.

[Kakmakr]

We will never know exactly how many people are trading Bitcoin at any given time, because many people trade on multiple platforms and a lot of these exchanges fake their trading volumes. We also have OTC platforms, where larger transactions are done and loads of exchanges that does not adhere to KYC/AML requirements.

We are also not considering how many P2P trading are done on Bitcoin meetups and just person to person transactions in general. Exchanges are also not keen on revealing this data, so you will seldom see statistics being released from these platforms. 

[cipherhut]

There is a large database is available that shows the increasing volume of the cryptocurrency users among which the ratio of the Bitcoin user is high which means the increasing impression of the cryptocurrency among the society is rapid and effective.

[Kemarit]

I echo the sentiments here, there is no way that we will have the data to say how many people are really trading in a certain time frame. The good thing is that this market never sleeps, when the other side of the globe is resting, the other side is preparing to make its trading run.

As far as wash trading or fake volumes, there has been a reports already and it's no secret that some high and mid level exchanges have been practicing this fraudulent act for years.

[Haunebu]

Whereas Coinmarketcap has done nothing.

Coinmarketcap can actually add something like this based on the user experience on their own website. I know there are many loopholes in such a system but, still, they can initiate something like this as they are more known in the crypto community. 

They have admitted that something is definitely wrong. Check this out:
https://cointelegraph.com/news/coinmarketcap-will-alter-listing-metrics-after-latest-fake-volume-research
https://openmarketcap.com/ : Website that gets rid of fake exchange volumes!

As far as wash trading or fake volumes, there has been a reports already and it's no secret that some high and mid level exchanges have been practicing this fraudulent act for years.

I agree. It is a pretty smart tactic to attract users over the long term. No one can really check for sure and investors get tempted to trade there as long as the exchange itself isn't a scam.

[YuginKadoya]

Fake data will sure surface when the said exchange would inform the public that they have that kind of volume, We can say that there are a lot of people that are really trading but we can not gather up the real data or even the estimate data for it if the exchange itself would cover up the real volume on their part, And if this article really is real then there really is a series that exchange would make up their own number so they can encourage more traders in their sites.

[royalfestus]

Exchanges have been manipulating with fake volume data for a long time. There isn't any mechanism in place to track the actual number. I read in one of the topics on BTT a few days back (I think it was in the month of May) that Coingecko will be introducing a Trust Score to combat Fake exchange volume data. How successful it was? I do not have any Idea.

At least a small website like Coingecko is trying to resolve this important issue. Whereas Coinmarketcap has done nothing.

Coinmarketcap can actually add something like this based on the user experience on their own website. I know there are many loopholes in such a system but, still, they can initiate something like this as they are more known in the crypto community.  

coingecko is likely to take over with information available on the website. CMC is still enjoying its old fame with little development, they could be so careless to observe that they can be over taking.

[Red-Apple]

i still don't get why people are so concerned about the percentage of fake volumes reported by exchanges. it doesn't change anything about the market at all. and they are all doing it to some extent and they are all doing it to compete with each other so that they can remain higher on the lists sorted with their daily volume.
for example if they report some altcoin to have $10 million daily volume when it has only $1000, that coin won't become any better by magic. and it won't get pumped because of it either.

[valentin68]

I am doing stock trading and forex trading for 10 years now on virtual money. I quit forex trading 3 years ago.
I have never trade on real money. If one wants to learn to trade one needs 15 to 20 years to do this good.

I am not trading Bitcoin. Bitcoin is a good currency, is the money of the future. Until 10 years ago when Bitcoin was "invented" we had no food, we had no jobs, we had no industrial production. In 10 years of PayPal and Bitcoin the agricultural and industrial production has grown tremendously.

 It is the merit of PayPal, it is the merit of Bitcoin that today we prospere, that people have good jobs and wishes for a good life that has not existed until now.


I guess that not many people trade Bitcoin. People use Bitcoin to buy everything they want to, people hold Bitcoin because is so good so that its value is going up 20 times every 3 to 5 years.  

[bhabygrim]

looking at 3 random exchanges that don't even have a bitcoin (versus fiat) market is hardly a good metric to talk about the entire cryptocurrency market and specially a topic that is worthy of posting in the "bitcoin board". if you want to talk about altcoin fake volumes them move this to the altcoin board.
not to mention that all these percentages are the guesses of these companies that were trying to make a name for themselves, practically advertising their services by bullshitting about exchanges and their volumes.

I strongly agree this isn't some well known exchange to start off and the number of traders couldn't really be known right now,
We have so many exchange and so many people who are using them not to mention that there are some people who register more than one account and use all of their alt-account to trade.

[NeuroticFish]

I found this article extremely interesting. It raise some solid points about How Many People Are Really Trading Cryptocurrency.

Old news and no new info. And then why bother? Because the price rose a little and every blog and new site expects more traffic?
Yes, the volumes are manipulated. Most have learned to live with it. It's the volumes, not the actual price, you know...

Of course the reporting is wrong - higher reported volumes means that more would use that exchange and more users means more money from fees.
But if the volumes are highly incorrect, the liquidity will be unsatisfactory and the traders will find another exchange.
Again, we have learned to live with it. This will continue to go on until proper regulation will be imposed on (all!) the exchanges.

[palle11]

As of trading, I don't think the number is genuinely increasing because there is manipulation going on for some exchanges to grow and become popular. I think rather that more people are hodling than trading the coins because of fear from the bear experience. The expectation is that price is going to bull, so why trade after all 

[MonsterV]

i still don't get why people are so concerned about the percentage of fake volumes reported by exchanges. it doesn't change anything about the market at all. and they are all doing it to some extent and they are all doing it to compete with each other so that they can remain higher on the lists sorted with their daily volume.
for example if they report some altcoin to have $10 million daily volume when it has only $1000, that coin won't become any better by magic. and it won't get pumped because of it either.

I think you are wrong if fake volume doesn't affect the market. Their goal is to make a fake volume to get the top position so that many traders and investors glance at their coins. In my opinion this is a cunning way of competition, which should be the better coins at the top but be defeated by shitcoin who do fake volumes.

Okay let's read this news https://www.forbes.com/sites/cbovaird/2019/03/22/95-of-reported-bitcoin-trading-volume-is-fake-says-bitwise/#69b295f86717

[Nadziratel]

It depends what are you waiting from cryptocurrencies trading. People always buying & selling cryptocurrencies. It is contiune just right now also. 24/7!

But some of these not for real trading because trading contest sometimes getting volume for some coins. Also manipulation can effect it.

[antisocial77]

Does it important? If you trade on trustful exchange, you dont need anything else, just your profit.its same when you buy gold from a bank.

[Johnzky]

i still don't get why people are so concerned about the percentage of fake volumes reported by exchanges. it doesn't change anything about the market at all. and they are all doing it to some extent and they are all doing it to compete with each other so that they can remain higher on the lists sorted with their daily volume.
for example if they report some altcoin to have $10 million daily volume when it has only $1000, that coin won't become any better by magic. and it won't get pumped because of it either.

I think you are wrong if fake volume doesn't affect the market. Their goal is to make a fake volume to get the top position so that many traders and investors glance at their coins. In my opinion this is a cunning way of competition, which should be the better coins at the top but be defeated by shitcoin who do fake volumes.

Okay let's read this news https://www.forbes.com/sites/cbovaird/2019/03/22/95-of-reported-bitcoin-trading-volume-is-fake-says-bitwise/#69b295f86717

That’s what it said mate,that fake volume really affects the market since this is very misleading and can lure investors wrongly.i don’t know why did he says it doesn’t affect the market but that’s clearly cheating and why would the need to do that if they have no intention of misleading people?

[Dapper]

I am for sure.   As for everyone else, who knows?

[thesmallgod]

I read somewhere in the forum that CMC has stopped listing many exchange platforms. I do not know how true it is but let me tell you that it is no more news that many exchange platforms fake trading volumes to attract people. In fact, I personally wrote a blog revealing why many investors should be very careful in trading on some platforms. 99% of any new launched exchange platforms are guilty of this. Some of them should be better refers to as fundraising platform rather than a crypto trading platform. IEO is the latest means through which many of these fake volume exchanges are using as leverage.

[b3llsf1l3s]

i still don't get why people are so concerned about the percentage of fake volumes reported by exchanges. it doesn't change anything about the market at all. and they are all doing it to some extent and they are all doing it to compete with each other so that they can remain higher on the lists sorted with their daily volume.
for example if they report some altcoin to have $10 million daily volume when it has only $1000, that coin won't become any better by magic. and it won't get pumped because of it either.

Yes indeed, of course it seems like that, but don't forget that when trading people also see the volume of several coins they invest. If things like this continue then it is not impossible if one day the exchange or coin will scam

[royalfestus]

I read somewhere in the forum that CMC has stopped listing many exchange platforms. I do not know how true it is

You can compare CMC tokens to Coingecko to find that out, though some of these token trade with low volume in mostly low volume exchanges but there are case of high volume exchanges. CMC demands certain amount of daily trade and numbers of exchanges to get list on its platform but have also seen some exception,eg. TEMCO, influence in the space.

[Vinalians]

Yes that's true. Some of the markets are not just being true when it comes in volumes I guess the reason of them is cause they are popular and they need most volume and that volume will make them noticeable.
People in the cryptocurrency market today are not that much but we must also consider those people who are trading and putting their money OTC(OVER THE COUNTER) right. As far as I know, they are the ones that have a big investment sometimes in the cryptocurrency.

[Eildosa]

Of course, we will never know the exact trading volumes on the exchanges, because these data can really be exaggerated. But I can believe that now people have become more trade. 2018 was not the most profitable year and I know that many began to study trade.

[nydiacaskey01]

Thats what I am thinking about those exchanges that goes among the top 10 of exchanges. Some of them are unknown but yet made it to the top 10 and look at the rank of Bittrex, compared to the other sites. Imagine 1 site has how many traders and other sites still claim they have a lot of traders logged and active.

[Chikito]

Does it important? If you trade on trustful exchange, you dont need anything else, just your profit.its same when you buy gold from a bank.

Yes this important, real volume are important for real people betwen trade are getting profit, when trader only fake this gettin loss because exchange playing this game to get your money only, not trade to trade purpose.

Gold is real, you getting physical gold when buy it from gold store, i don't thing so bank sell physical gold, they only give you document gold without physical

[lucho1592]

... now people have become more trade.

Now there are definitely more traders than a year ago, and note that  advertising of crypto has become much more than ever

[btc78]

I am for sure.   As for everyone else, who knows?

Holding is also part of trading right?😂 so I am also for sure lol

Though I believed that many of accounts here are not totally trading bitcoin because they prefer altcoins to use trading since alts are cheaper and fast moving compared to bitcoin that has been turtle move for long time and will only move fast when the great bull comes

[djcaoile1205]

I heard recently only Binance and Bitfinex don't washtrade. But still I believe they do. What about the real trading volume, God knows.

[Kimonoe]

I am for sure.   As for everyone else, who knows?

Holding is also part of trading right?😂 so I am also for sure lol

Though I believed that many of accounts here are not totally trading bitcoin because they prefer altcoins to use trading since alts are cheaper and fast moving compared to bitcoin that has been turtle move for long time and will only move fast when the great bull comes

right, they try their luck on altcoin, by using volatile. if they are successful they will certainly become impromptu rich, but it could be a rubbish coin in an instant. although some people prefer to store bitcoin, because it is safer. I think we are all traders here, because of course we have coins as hope

[huanting55]

I found this article extremely interesting. It raise some solid points about How Many People Are Really Trading Cryptocurrency.

There's a lot of fake data in the market so finding reliable data source is pretty difficult.

https://cdn.cryptohopper.com/images/Blogposts/faktransactions-61.png

After a disappointing 2018, crypto markets are booming once again.

Backed by institutional investors, growing numbers of individual enthusiasts, and broad support for its underlying technology, the blockchain, the entire crypto sector is seeing a resurgence.

According to data collected by CoinMarketCap, the collective crypto cap has nearly tripled since the start of the year. Led by Bitcoin (which has also tripled its value since its low point in 2018) cryptocurrencies are outperforming many other investment assets, including stocks, bonds, gold, and oil.

For those who witnessed crypto’s meteoric rise in 2017, this year’s activity might seem incredibly familiar.

Naturally, now that cryptos are once again an intriguing investment vehicle, exchanges are experiencing a deluge activity. Daily trading volumes have exceeded $70 billion, up from just $18 billion at the start of the year.

At the same time, some are questioning the legitimacy of this data, contending that it may be exaggerated or overblown. With individual and institutional investors alike flooding into crypto markets, now is an excellent time to evaluate the trading landscape and to consider how crypto trading really gets done.

Most importantly, it’s the right time to evaluate how these factors can help investors capitalize on the most recent crypto boon.


Full article here
https://www.cryptohopper.com/blog/240-how-many-people-are-really-trading-cryptocurrency

Perhaps most importantly, automated trading bots can provide the cryptocurrency trading tools that they need to be successful in this burgeoning market. These can include: Mirror trading, Paper trading, Backtesting, Trailing stops

[Eraldo Coil]

Oh, I'm not aware that volumes could be faked. But I think cryptocurrency is popular enough to get a lot of traders out there. This kind of thing is bad since it can fool the new traders out there. They probably change this thing for the sake of money as well like paying the ico reviewers to give the projects a good rating.

[Froppy]

There are many kinds of traders here in cryptocurrency, sometimes those have people that trades for making money for their daily lives and also has people that trading is for fun only. Also there are people who only selling coins because they want to have some income came from rewards. And i think your data is also correct as what i had observe.

[Mr.Zero]

yes, this is so bad in cryptocurrency.
a lot of exchange is manipulated trading volume with fake trading volume, this is will make it look so good but not real.
we must to doing something to stop it.

[Nellayar]

We can`t get enough amount of traders in an exchange since some of them or should I say all of them has fake volumes. In fact, we don`t know if whole of the trades are conducted by real traders.
This topic is not anymore big deal to everybody, but I think that day traders need an exact number of traders for a specific amount of time. We need to know volumes because some of signals as well as indicators need the volumes in order to know when we will enter the market.

[ttcsalam]

I do not think it's the correct statistics. But I think it is better not to make statistics based on estimates. It is necessary to present the information in a proper manner.

[veleten]

way to take three pretty low volume and , to be fair , crappy exchanges and post figures that are guestimates
there is no way to account the real number of fake trades and it is only their estimates
but I am sure that at least 30% of the trading volume is fake , but figures >90% are ridiculous
for example: https://coinmarketcap.com/exchanges/huobi-global/
in 24 hours the volume is around 37.000 bitcoins , this means 34.000 coins are fake trades and only 3.000 or less are bought/sold by legit traders
0.01% of 3000 bitcoins would be only 0.3 bitcoins in profit , which won't cover the operating costs of the exchange