I've noticed that there are many questions in the community about wash trading — let's figure out what it actually is and why it is so widespread specifically in crypto.

Essentially, wash trading is when one trader or a group of people repeatedly buy and sell the same asset among themselves. It looks like huge activity on the chart, but in reality, it's a complete illusion. No one is transferring real money, there is no economic risk — just fictitious transactions meant to deceive the rest of the market.

In crypto, this is especially popular because everything is anonymous, exchanges are often poorly regulated, and there are plenty of bots that can automate this 24/7. Usually, it is done to meet listing requirements or attract retail investors who look at volumes and think it's a live market.

How exactly does this happen? The process is quite simple. First, someone controls several related accounts or wallets. Then, they organize a series of pre-planned trades for a single token. During execution, the bot starts placing buy and sell orders within fractions of a second — creating the impression of high demand without real funds flowing. Simultaneously, they use masking techniques like false orders that are immediately canceled, or intermediaries to hide the source.

All this wash trading game ultimately aims to manipulate the price, receive bonuses like airdrops, or simply improve rankings on the exchange. It's important to understand that this is an illegal scheme that distorts the real picture of demand and liquidity. If you see sharp volume spikes without a logical reason — that's a red flag.