Cryptocurrency Exchange Scam! What is Wash Trading?

by birtanpublished on August 17, 2020

Hello Republicans and welcome to this slightly different video in which I am talking about a topic that's not really covered by many people and I do feel it's quite important and a bit of an issue in the cryptocurrency space of today is in a bit of March 2019 as

Always thank you very much for watching and I hope this will be useful indeed some first of all I'm talking about washed reading so if you've never seen this term here is a short explanation so it's basically a process where a trader

Buys and sells our token for the purpose of feeling misleading information to the market so it can occur if coins are bought and sold at the same time by either in exchange BOTS or any other actors that would like to manipulate the

Price in order to portray a much higher trading volume then there actually is now this can implement the price point that the current price and also the market confidence within the coin now in terms of the exchanges it can also

Attract more users and more volume means quicker trades and usually better price and on top of that it also tracks new listings to the exchanges and those usually come with a very significant fee as a matter of fact this is probably one

Of the main ways that exchanges actually make money because of that a lot of exchanges take the volume with sole purpose to generate more income either via users or the tokens listed and on top of that like I said before of

Exchanges simply try to attract new users by faking volumes so how can this be detected so it is possible to detect horse-trading well it needs to be done on a case-to-case basis by analyzing a different variety of factors know things

Like unique visitors per day and the percentage of the unique access sessions as well as the order book liquidity is looked at there's also correlation between trade volume and the price volatility to determine something called

Price volume correlation and that's basically what's commonly used last but not least any weird movement of the price for some pump-and-dump and the changes in the volume are also analyzed by all of these now by

Analyzing the data a list of trusted exchanges can be created now this was and most of the data that I have is coming from absurd called blocks in transparency Institute so I do recommend you to check them out because they do

They are doing a very good job in determining what exchanges are basically legit and which of them are faking the volume now in terms of the actual offenders there is a lot of offenders in the sector as a matter of fact majority

Of exchanges are washed trading with only few of them having legitimate volume even the more popular exchanges that most people use and have been using for a long time are having some of the volume faked now there's obviously a lot

Of exchanges that are not well known that report huge fake volumes I do have a list here for example obviously that's where my team is more about there's oex coin with bit Forex coins banged up we tried with marks or BTC right with zb6

See Max and many many many more I'm not gonna go for all of them but also the more known and trusted exchanges has been actually guilty of washed trading to some degree indirectly with some o'ciock swabby hit B to C B box hell

Bang digi Phoenix cone beam and busy as well and obviously there's more of those too so other any exchanges that are actually legitimately is they are not all of them are faking the volume however there's a lot of exchanges you

Know that do that but the Maruyama the major volume exchanges without anyone's training in this for now has been identified to be financed bit Phenix a bit crack and bit fire and paulownia obviously that was due up here to be

100% legit and if you go there you can you can expect the volume to be an actual volume that's happening now some of the exchanges did a little bit of wash trading but still majority of 12 all team is legit

For example bed tracks gated I hope Germany Cohen one CX dot IO and cocoa and so this probably should still be considered truthful and legit now not only big exchanges of smaller changed actually

Didn't do or did a very little of Australia does includes cause BTC markets bits of bank or Connery Khyber and many many more so even though it happens a lot it's not not all of them do it also keep in mind that just

Because exchange doesn't wash straight doesn't mean it's safe and legit you know just because they don't fake the volume there could still be always for them to scamming the actual users including simply causing the exchange

And stealing the money which leads me to the last point and probably the most important point basically don't keep it hones on the exchanges oh I love exchanges I'm cheating the market to attract users and new listings this is

Why so much fake about him happening so don't always believe the volume that display it oncoming market cup you should avoid those exchanges anyway as we have seen many times in the past with the likes of Cohen cryptokey for example

Or quadriga CX and many many more examples from the past so this test just proves that there are not many exchanges that can really be trusted now obviously there is a bunch of exchange I personally think that trust well it

Doesn't mean you should keep the tokens there anyway we have the likes of bindings crack in Germany comers pro kook on it especially if you hold the kcs tokens cause especially if your house called course or CVT tokens

Polonius or matrix are one of the best ones to use in my personal opinion but even those I wouldn't ever keep all my tokens on them because it's simply dangerous and even those can lose your coins there is not a single exchange

That's 100% safe also the central exchange is also a good option because those who usually do not have the central centers equity that could lose your money however existed before even on trust exchanges you shouldn't hold

Your coins permanently hold them in your own wallet when you do have your private keys that was pretty much it pretty interesting video in my opinion not a topical many people talk about but I do think it's an interesting

To see how many of those exchanges are actually trying to pretend they have a higher volume than they actually are as always thank you very much for watching and I hope it was useful so got four more and I do love you

Cheers

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