Bitcoin, Ethereum (ETH), Ripple, Litecoin and other crypto-currencies are the focus, when it exchanges to the volume of trade on the various crypto. But all is not Gold that glitters is. A majority of the trading volume is not real and is generated by Wash Trading. The claims, at least in a recently published analysis.The Problem of Wash-Trading and Fake Volume, we hear, unfortunately, for the first Time. A similar report had already been given several times, also with us. The situation has improved now, as is the Status Quo? Let’s find out together who you can actually trust.
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Ethereum, Bitcoin, Litecoin, and Ripple Wash-Trading
But what is Wash Trading? In the case of Wash-Trading is Fake trading volume. It will loop bought, in principle, in a period of artificially crypto-currencies and sold without moving the price (at least in most cases). As a result, a higher trade occurs for all observers, volume, and acts accordingly, more attractive for traders.Only from a high volume of trading and a liquid market it is for traders interesting. Due to the relatively small crypto market and a huge pressure of competition, are crypto-exchanges are almost forced to have their results to the outside Supplement.You don’t want to buy Bitcoin, you know, but where? To decide the right provider is not always easy. Therefore, we recommend that you take the time to look at our Bitcoin Broker & exchanges comparison. Often several providers are already required to really get all the Cryptos to cover. See for yourself: Bitcoin Broker & stock exchange compared with that now read.
Ethereum and Litecoin trading volume to 74% Fake
Among the 40 studied crypto-exchanges have the octopus best, Coinbase, Poloniex and Upbit cut off. OKEx and Bibox, however, are quite cut off with an exorbitant Fake trading volume of Wash Trading.Much more interesting, however, is to currencies what proportion of the well-known Crypto to actually be traded, and what is just hot air. According to the report, is on the 40 studied crypto-exchanges in Bitcoin (BTC) to 50% of Wash Trading. In the case of Ethereum (ETH) is far more dramatic with 75%. Similarly, Litecoin (LTC) with 74%. Surprisingly, it cuts Ripple (XRP) is rather good and reaches a value of 55%. Most of these Wash Trades were held on the crypto-exchanges Bibox and Huobi.
Privacy Coins, and stable coins also affected
Even worse, it has taken only Monero (XMR), and Dash (DASH), which were traded, according to the Report, 80 per cent of the Wash-Trading. Seemingly especially the South Korean stock markets are here for the fake trade volume, although these are coming under increasing regulatory pressure.The “cleanest” crypto-currencies, however, are Maker Dao (MKR), Binance Coin (BNB) and LEOcoin (LEO), each with less than 25% of Wash Trading. It’s bad enough that there is no “reasonable” cryptographic currency with 0% Wash-Trading.But Bitcoin and Altcoins are not the only digital Assets, where the volume of trade with Wash-Trading will be watered down. Also Stablecoins are involved. According to the report USDT (Tether) takes a total of 94% of the total trading volume of all stable coins. Overall, 67,3% of the USDT volume of trading of Wash to be achieved in Trading. In comparison, DAI is with 30.2%, PAX, with 13.7% and USD with a gain of 12.6%. Under the Stablecoins USDC cut off with 7.1% at the best.In the next few years, more regulations, the more the crypto-exchanges a lot of room to operate, Wash-Trading, and to drive the volume of trade at an artificially high level expected of us, certainly. Until then, we must rely on a reputable crypto-exchanges. It is also important to understand that per-se is not a risk for investors is, however, based on the volume of trade is questionable.76.4% of all CFD retail investors lose money.What do you say to the Ethereum (ETH), Litecoin (LTC), Bitcoin (BTC), Ripple (XRP) and co. Wash Trading, and Fake trading volume? Come in to our Telegram Chat and chat with experts and our Community of. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)