Fake volume. Fake activity. Real losses.
Volume skyrockets.
The graph comes to life.
The coin looks 'hot'.
And you click.
But what if…
Is there anyone actually trading there?
---
What is wash trading?
Wash trading is a situation where:
one entity (or group)
trades with itself
just to create an illusory volume and liquidity
At first glance, it looks like: ✅ huge interest
✅ liquid market
✅ safe environment
In reality: ❌ empty game
❌ inflated numbers
❌ trap for new investors
---
Why is wash trading done?
💰 1. Attracting capital
High volume = trust.
Retail sees:
> 'Here trading is crazy, that's legit!'
And it will enter.
---
🏆 2. Artificial pumping of coins
Projects want to look:
popularly
traded
"officially"
So they pay for fake volume.
---
🏦 3. Exchanges are improving their statistics
Higher volume =
✅ better ranking
✅ more users
✅ more fees
And somewhere…
and its own trading.
---
How does wash trading happen?
🔄 Trades between the same accounts
One entity:
sells
will buy immediately
over and over
Statistics are rising.
Interest seems huge.
---
🤖 Bots run non-stop
Algorithms are running:
micro trades
thousands per hour
without real demand
The market moves.
But it doesn't breathe.
---
How do you know if the volume is fake?
❗ Volume is rising, but the price is stagnant
Price doesn't change, but trading is 'crazy'?
That stinks.
---
❗ Order book is empty
High volume, but:
few orders
pathetic depth
huge spreads
Fake liquidity.
---
❗ Suspicious exchanges
Exchange, about which:
nobody knows
has no regulation
has no history
But does it have 'top volume'?
---
Why is wash trading dangerous for you?
Because:
you're entering a fake market
you leave without a buyer
liquidity disappears when you need it
stop-losses don't work
price drops without warning
And you don't understand why.
---
How to protect yourself?
✅ Trade only on verified exchanges
Big name = smaller chance of circus.
---
✅ Watch if the volume matches the price
Volume without movement = dead market.
---
✅ Don't jump on 'unknown coin + huge volume'
That's a deadly combination.
---
Conclusion
Wash trading is not:
> system bug.
It is:
> part of the game.
And as long as it exists:
greed
FOMO
blind trust in numbers
…there will also be fake volume.
