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Why and how cryptocurrency exchanges publish fake commercial volumes

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UNDERSTANDING THE VOLUMES OF CRYPTO TRADING
Like any other market, the crypto space has several entities that track the commercial activities that occur within it. These are basically transactions initiated and closed at any given time, the most immediate metric being a 24-hour period. That is what is called the daily trading volume of a cryptocurrency.

Cryptographic information resources such as CoinMarketCap publish these cited figures in monetary terms. The data comes from several encryption exchanges in the market.

Metrics also include the price of the cryptocurrency, total market capitalization, circulating supply and total supply. These figures are subject to change as they are affected by market forces at any given time.

The trading volume can also be affected by a rush to buy (buying pressure) or a dump (selling pressure).

WHY EXCHANGES LIKE TO LIE?
As much as the exchanges make Bitcoin trading much easier for everyone, they are mainly for the money. They charge commissions for transactions made through them. They also charge listing fees for new crypto fresh from ICO (Initial coin offer) and that need exposure. Exchanges with high trading volumes seem safer and more attractive, since anyone who reviews their figures assumes that the people behind those volumes definitely trust the exchange. Every exchange wants to be reliable.

However, if an exchange is not really high traffic, you can resort to falsifying volumes to achieve the same purpose of attracting new users and coin listings. That is what most of them are doing, according to the Bitwise study

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6 hours ago, 1millionClub said:

If you don't want to deal with the fake volume exchanges you should avoid using coinmarketcap and find another alternative. I am using openmarketcap lately and I see they are handpicking the honest exchanges so you don't get fooled.

Nice to hear about openmarketcap and this will avoid from scams and we all should spread this news everywhere. Scammers always use scam sites for scamming people, they must know how to work hard instead of scamming someone hard-earned money.

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1 hour ago, aann001 said:

Why avoid coinmarketcap?
if you don't want to find a fake trading volume?
I think you can just open an exchange then observe by looking at the trading history it will let you know ..
easy i think ..

Why avoid Coinmarketcap?

Because there are far better alternatives. coingecko and openmarketcap are providing far better results than coinmarketcap. coinmarketcap's trade volume numbers are completely fake. If you like fake numbers go use coinmarketcap but you'll just deceive yourself.

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They do through a practice called Wash trade.
A wash trade is a form of market manipulation in which an investor simultaneously sells and buys the same financial instruments to create misleading, artificial activity in the marketplace.
First, an investor will place a sell order, then place a buy order to buy from himself, or vice versa.

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Not as you think that's exchanges are showing fakes volume. Every exchange have its own volume because they not share the whole world volume, that's why always the prices of coins are different with others exchanges because of different trading prices orders.

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I think they doing it to attract more users to use their exchange because most of the traders want an exchange that has massive volumes to do scalping.

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Most of the exchange doing this in order to increase their rank on coinmarketcap because coinmarketcap is the best place for exposure.


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This is well-known and understandable, all exchanges are profit-making in first class, and each exchange seeks more profit by attracting more investors and traders and charging more fees. But in the end everyone benefits. You as a trader benefit as well as an exchange that provides you with trading benefits.

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I think it’s normal think today, since so many new exchangea they need to fake their volume to compete with other cryprocurrency exchanges, some old exchange was still making fake volume too i see, coz they want to attract new user. Just be careful with exchanges like this!

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great topic , thank you for the information dude , i would like to know name of those exchange who fake the trading volume please 

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On the how, i think they just change the volumes in the source code of the app, and on the way it is for profit on fees etc.

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11 hours ago, Awaremooner said:

This is one pitfall of arbitrage trading. Going to exchange because of published fake volumes will likely get you stuck in the exchange. Saw a topic here where someone complained withdrawal on one exchange is manual because it took three days. I'm sure fake volume is the reason his withdrawal was delayed

It might be! That is why it is better to stay away on the exchanges that publishing fake volumes because they will surely hold your funds. 

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On 10/12/2019 at 3:50 PM, 1millionClub said:

Why avoid Coinmarketcap?

Because there are far better alternatives. coingecko and openmarketcap are providing far better results than coinmarketcap. coinmarketcap's trade volume numbers are completely fake. If you like fake numbers go use coinmarketcap but you'll just deceive yourself.

Thank you for sharing this information. I already know about coingecko but I just heard about opemarketcap. I was annoyed at Coinmarketcap why they didn't change the algorithm for more credible rank.

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Just like the thread you wrote, Cryptocurrency exchange often falsifies the volume to attract top rankings in coin marketcap and of course attract new users to join their exchange, we must be careful.

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They do through a training called Wash trade.A wash exchange is a type of market control wherein a speculator all the while sells and purchases the equivalent money related instruments to make misdirecting, counterfeit action in the marketplace.First, a financial specialist will put in a sell request, at that point submit a purchase request to purchase from himself, or the other way around. also, Most of the trade that utilization to lie or makes lie are those that are not digging in for the long haul in the market or those that are eager to be prevalent in the blink of an eye and that typically influence them alot.

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The volumes are used to attract traders, well new traders who see these markets. I don't think it's a bad thing completely as some people think. Much of the market would not exist if not for these manipulations. Every time a coin goes to the moon it's mostly because some people manipulating the market. And some people benefit from this, and others do not. The biggest example of this is with Tether and Bitcoin and people are trading on Tether that does not actually exist which is interesting, and this affect the Bitcoin price to way up.

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To avoid such a thing, if we often visit the coinmarketcap site, we can see how much the level of liquidity of an exchange or the level of liquidity of a coin on an exchange, because in coinmarketcap also has added a feature to see how liquid exchanges we might use,

but actually if we don't feel directly by trying to trade, of course we won't know how quickly orders can be filled...

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For this purpose you use the real and more popular crypto exchange like yobit crypto exchange and earn profit. The best and top facilities give crypto exchange is yobit crypto exchange and in this way i suggest all the people that they use yobit crypto exchange.

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Mainly now a days many exchange use bot to increase the volume but i think this is not a good way. they are doing it to show that their volume is high.

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Wash trading is common and its common tactic of most projects to show that they have a real volume to attract investors and traders. Most exchange platform patronized such activities since it generate revenues as well as increase their overall volume in CMC


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Fake volume they just create because peoples will believe that the exchange is the best exchange and they trust on this type of exchange and invest so much money and after when the exchange will collect the huge amount than they make a scam with the peoples.

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On 10/4/2019 at 5:05 PM, starwill said:


UNDERSTANDING THE VOLUMES OF CRYPTO TRADING
Like any other market, the crypto space has several entities that track the commercial activities that occur within it. These are basically transactions initiated and closed at any given time, the most immediate metric being a 24-hour period. That is what is called the daily trading volume of a cryptocurrency.

Cryptographic information resources such as CoinMarketCap publish these cited figures in monetary terms. The data comes from several encryption exchanges in the market.

Metrics also include the price of the cryptocurrency, total market capitalization, circulating supply and total supply. These figures are subject to change as they are affected by market forces at any given time.

The trading volume can also be affected by a rush to buy (buying pressure) or a dump (selling pressure).

WHY EXCHANGES LIKE TO LIE?
As much as the exchanges make Bitcoin trading much easier for everyone, they are mainly for the money. They charge commissions for transactions made through them. They also charge listing fees for new crypto fresh from ICO (Initial coin offer) and that need exposure. Exchanges with high trading volumes seem safer and more attractive, since anyone who reviews their figures assumes that the people behind those volumes definitely trust the exchange. Every exchange wants to be reliable.

However, if an exchange is not really high traffic, you can resort to falsifying volumes to achieve the same purpose of attracting new users and coin listings. That is what most of them are doing, according to the Bitwise study

Yeah,i have experience such a exchange.When i try to sell my coins which i buy from this exchange.My sell orders were stoped and i  was confused what is happening.I checked my connection and try again and again.But my all transactions were stoped.I heard they used bots for this.

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Thanks anyways for this informative write-up there it will help most beginners to ascertain scamming commercial volumes

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