Fictitious Trading in Cryptocurrencies

Fake trading in cryptocurrencies is a manipulation where the illusion of high trading volume is created on an exchange, which can artificially influence the price of a cryptocurrency.

This usually happens through related party transactions or by using automated algorithms that constantly buy and sell assets with each other.

Such actions can mislead investors by creating a false impression of the liquidity and popularity of a particular coin.

In cryptocurrency markets, fictitious trading is common due to a lack of regulation, making it difficult to detect.

Main Risks:

🔵 Fake trading can cause large price fluctuations, making the market more volatile and unpredictable.
🔵 Investors may make decisions based on false data, increasing the risk of financial losses.
🔵 An exchange's involvement in fake trading can seriously damage its reputation, negatively affecting user trust.

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