Crypto Hotshots 2022 🔥♨️

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
  • bitcoinBitcoin(BTC)$27,545.00
  • ethereumEthereum(ETH)$1,757.74
  • tetherTether(USDT)$1.01
  • binancecoinBNB(BNB)$324.75
  • usd-coinUSD Coin(USDC)$1.01
  • rippleXRP(XRP)$0.442612
  • cardanoCardano(ADA)$0.370819
  • dogecoinDogecoin(DOGE)$0.076510
  • staked-etherLido Staked Ether(STETH)$1,751.95
  • matic-networkPolygon(MATIC)$1.11
  • Events
  • Videos
  • Podcast
Voice of CryptoVoice of Crypto
Aa
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
  • Services
  • Know Us
Search
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Follow US
Copyright © 2023 Voice of Crypto. All Rights Reserved
Voice of Crypto > VOC Explained > What is a wash trade in crypto?
VOC Explained

What is a wash trade in crypto?

Rose Nnamdi
Last updated: 2023/03/14 at 12:06 PM
Rose Nnamdi Published May 20, 2022 March 14, 2023
Share
Voice of Crypto Bitcoin

Different scams were used in traditional finance but found their way into the crypto space as adoption and the number of users grew. One of them is wash trade. 

A wash trade is a type of market manipulation where a trader sells and buys the same crypto simultaneously. This is done to manipulate the market into thinking that activities are ongoing, thereby increasing the value of the underlying tokens. 

It usually begins with a crypto trader placing a sell order in exchange. Once that is done, they immediately place a buy order. They then buy the tokens from themselves. Sometimes, they may do it in conjunction with related parties to add more credibility to watchful eyes. 

People do wash trading of cryptocurrencies for different reasons. It could be to improve the trading volume of the token. This makes the market feel that the demand for crypto is high, thereby increasing the value in the market. 

A whale may decide to do this to improve the value of the underlying token. Sometimes, they may place a buy order to try and drum up the value of their token. They then put a sell order if they want to reduce the token’s value.  

In the past, traditional financial participants may organize wash trading to compensate brokers for an activity they did without the public knowing. A firm may want to pay brokers that carried out activities that are either illegal or in the grey area but can’t do it in public. They make it seem like they are selling digital assets to pay the broker’s fees. 

Wash trading is illegal in many countries, especially the United States, and people can be penalized for such an activity. It is considered a scam in major markets. 

You Might Also Like

Aftereffects of Meta Ending NFT Support for Instagram and Facebook

3 Things About Crypto you Need to Know Before the FOMC meeting

US Government Moves 40,000 BTC

Silver Lining for Crypto After SVB Collapse

Could ChatGPT v4 Disrupt Crypto and Blockchain?

TAGGED: Crypto Exchange
Share this Article
Facebook Twitter Email Copy Link Print
Previous Article Flash crash What is a flash crash?
Next Article VOC,VOice of Crypto, Ransomware What is WannaCry Ransomware?
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Binance

Follow US

Find US on Socials
Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Subscribe to our Newsletter

Get Newest Articles Instantly!

Ledger
Popular News
Web3 Shorthand
Web3 Shorthand: A Glossary for Crypto Newbies
web3 event London VOC
Networkverse: NFT & Web3 & Metaverse – Open Mic & Networking
Quick-Tips-To-Avoiding-A-Fake-Crypto-Wallet
Quick Tips To Avoiding A Fake Crypto Wallet

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto

Voice Of Crypto hits a beat with almost 15 million users, churning out the best news and content in the Web3, crypto and blockchain space

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

  • Advertise With Us
  • About Us
  • Privacy Policy

Copyright © 2023 Voice of Crypto. All Rights Reserved

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?