Back to glossary

Wash Trading

  • “Wash trading” refers to the practice of buying and selling the same asset (or multiple assets) to create the illusion of trading activity, volume, or demand. This is typically done by a single entity or coordinated group of traders.
  • The primary purpose of wash trading is often to artificially inflate trading volumes or manipulate the price of a cryptocurrency. By creating the appearance of high trading activity, traders may seek to attract new investors or create momentum in the market.