That in the cryptographic range, not everything is always kosher, is not really surprising. However, as far as the Manipulation is enough really, but is always overwhelming.
Washtrading on the crypto exchanges?
If one may give credence to the “Blockchain Transparency Institute” (BTI), only 25% of Bitcoin trading volume is “real”. The remaining 75% seem to agree on Washtrading.
Our December Report is out finding $100mil was stolen in 2018 via listing fees on wash trading exchanges. Over 80% of the volume on top 25 CMC BTC pair is fake. 57 exchanges are now on our Advisory List. https://t.co/XKC33QyUdR
— Blockchain Transparency Institute (@BTI___) December 13, 2018
Washtrading referred to as the “trading with yourself”. You “sold” his own Coins on an exchange themselves. Since the exchanges to post this, however as a regular trading volume of the impression that the stock is traded, as it is indeed the case, this can add up quickly. It is also a possible method, the stock exchange operator secretly money by way of Commission to blame. Since Washtrades represent a market manipulation, this (forbidden, at least in traditional asset classes), in the meantime, EU-wide. In the largely unregulated crypto-universe, this seems, however, to impress the least.
To the extent to which the Reports of the BTI trust, however, is uncertain, since they offer no public contact person, and their methods are relatively opaque. If the information on the BTI would be applicable, this would be but probably not surprising. Also another point, the claim that a lot of trade volume is “Fake”.
The “advantage” of this “Fake” volume for the developers of the projects and the crypto stock exchanges is obvious:
1. The Coin seems to be for investors more attractive than he really is. High trading volume suggests that a crypto currency is sought after. Fake volume may suggest that a crypto-currency is desirable, as it really is.
2. The crypto stock exchanges can offer to brag about a higher number of users and higher transaction volume than it is them actually possible. This, in turn, allows you a higher Listing-to demand Fees from projects.
According to BTI, the Washtrading of the Bitcoin-Pairings at many (according to Coinmarketcap) to fake Top 25 stock exchanges 99%. In the case of an alleged average listing price of $ 50,000 per project an attractive business.
However, this information is not to be treated with caution, as long as BTI itself is completely transparent, and the findings in a publicly verifiable way.
Light in the shadow
According to the BTI, some of the crypto exchanges, however, are more or less free of Washtrading, at least in the BTC Pair. Including: Kraken, Binance, Biftinex, Coinbase and Gemini.
In the following we want to introduce you to the main crypto exchanges short.
As for Europeans, the Euro is the main currency, we would like to introduce first of all stock exchanges, which will allow a trade with the Euro.
Octopus is supposedly one of the crypto exchanges without Washtrading, is a major Japanese stock market, which Euro may conduct transactions. Kraken has been hacked never, however, had seem in the past often problems with the Server, but for several months now a thing of the past. Overall, Kraken trust seems to be more worthy than most of the other Exchanges.
As the Kraken a few months ago, however, the state of New York documents has been prompted on the Kraken exchange, they refused. They perceived the questions as brazen and extensive.
Thanks to the NY taxpayer for funding this research saved our Product team a lot of time, and we got some interesting non-public info on our competitors. Excellent overview of issues, and a nice list of Questions Customers Should Ask’ on pg 32. https://t.co/S5XxopBEyC
— Kraken Exchange (@krakenfx) September 19, 2018
Moreover, Kraken is no longer clear that they are operating since 2015 in New York.
The NYDFS knows that we left NY in 2015. We do not have any clients in NY state and therefore we are not under the jurisdiction of the NYDFS/Bitlicense, nor the NYAG. There will be zero impact to our business. https://t.co/upfVs2rwJ2
— Kraken Exchange (@krakenfx) September 19, 2018
Compared with other German stock exchanges/market places such as Bitpanda or Bitcoin.de octopus lures with relatively low trading fees. Since octopuses, as well as Bitcoin.de a partnership with Fidor Bank, the cash in or cash out is usually done quickly and reliably.
In the case of Bitstamp, it is a further exchange to Euro transactions accepted. According to the imprint of the registered office of the company in England is (still) within the EU. Since Bitstamp offers no cooperation with the Fidor Bank, wire Transfers are sometimes a little longer on the road. The bottom line is that the stock market seems to belong, however, definitely the more serious providers, last but not least, on the basis of the seat in Europe. The fees are relatively considered to be pretty fair.
The last major Euro-stock exchange, allegedly Washtrade-free Coinbase. Coinbase is sitting in San Francisco, California and is one of the most trusted and most professional exchanges. Coinbase is to come up, known to be a simple operation, which makes it easy for even beginners to operate the stock exchange. This, however, by relatively high Trading fees princely pay.
If you get a little deeper into the crypto universe, then you will quickly find that many currencies cannot be purchased with Euros. Many pairs you can buy only with Bitcoin or USD. In the Following, we want to you a selection of the most important Bitcoin-Altcoin exchanges to introduce. These exchanges usually offer a much larger selection of Coins, but it may be in terms of seriousness less trustworthy. While Fiat must meet exchanges strict requirements to be able to operate at all, so Bitcoin to Altcoin exchanges tend to be unregulated. You are here to learn how you can find out, on which stock exchange you what Coin can buy.
Binance offers no Fiat Trading. It can not be traded with euros. In addition, Binance is unregulated a decent amount of. Nevertheless, Binance enjoys the undivided confidence of the crypto community. In a recent survey Binance cut in terms of trust from the would still: in front of the strictly regulated Coinbase.
Which exchange do you trust most? Please give a reason why in the comments if you’re able
— Beaxy (@BeaxyExchange) December 19, 2018
This confidence is probably due to the excellent customer support. Although there were on Binance in the past, some of the Hack-attacks , but these were inflicted mostly by the users themselves. Binance responded quickly to the attacks and compensate the victims. Also, according to the BTI Binance seems to be trustworthy and to operate no Washtrading.
In addition, Binance has managed to become a kind of Meme, what seems to many users to be symapthisch.
The Big upgrade. Funds are safu! https://t.co/1DV1sVpI93
CZ Binance (@cz_binance) June 25, 2018
In the case of Bitfinex, it is a stock exchange, which allowed USD Trading. Thus, this is a Fiat-exchange. Because they supported but not the Euro, many Europeans are rather useless. But apart from the USD Trading Bitfinex also offers a wide range of Altcoins. On Bitfinex especially find many Over-the-Counter Deals (i.e., the sale of large amounts of Bitcoin from private person to private person, without using the stock exchange itself – this prevents fluctuations in price). Bitfinex seems at first glance to be pretty trustworthy, so Bitfinex is to operate no Washtrading. Bitfinex is, however, some users suspected together with the Tether and the Bitcoin manipulate the price artificially. Passion is the most representative of this (conspiracy)theory of the Twitter User Bitfinexed, which has after all to show for it to 45,000 Followers. What do you make of it, everyone has to decide for themselves.
No market manipulation here at all. pic.twitter.com/Qo3VGDt5HS
— Bitfinex’ed (@Bitfinexed) December 28, 2018
Bittrex belonged to a couple of months ago to the greats of the industry, however, has not lost in the last time, a lot of trading volume. Bittrex is a Fiat exchange and USD supported Trading, but also for its wide selection of Altcoins known. Bittrex seems to be more trustworthy than most of the other Altcoin exchanges. The stock exchange itself to be in Seattle home.
Bitmex is a crypto exchange, which is a bit different than the others on the list so far. In the case of Bitmex, the Purchase of a crypto-currency is less in the foreground than rather the quick arm/rich currencies with Crypto. In the case of Bitmex, you can bet both on rising and on falling Crypto prices. In addition, the levers are in an almost irresponsible amount possible. The highest possible Leverage in the case of Bitmex is x100. This means that each course is enhanced movement 100 times. Example: Bitcoin will rise to 0.5% acts as a Bitcoin would rise to 50%. Falls Bitcoin 0.5% so your 50% will lose your money. You can be rich very quickly, but also very fast arm. Before you here are ripping you, but you should really know what you are doing. Otherwise, you will be posted soon of the well-known Twitter Account BitmexRekt, the failed speculation on Bitmex will post automatically.
Liquidated long on ETHUSD: Sell 374,470 @ 133.75 💯💯💯🔥⚡ ~ Double kill
— RA (@BitmexRekt) December 29, 2018
And Bitmex is also accused of other courses than the rest of the stock exchanges and to enlarge people aware of liquidate for your Profit. It is difficult to verify the veracity of these allegations.
Finally, we would like to introduce to you some of the “smaller” exchanges. Although these are not as professional as the above exchanges, but they often offer Coins to the ones we find in the case of other stock exchanges is difficult,
In Kucoin it is not a Fiat exchange. For this, they provides a full range of the various Altcoins. For many ICOs Kucoin is one of THE focal points according to the ICO, this makes Kucoin to an important exchange for Altcoin trading. Kucoin is known for a good Support Service. In terms of seriousness Kucoin can’t keep up but, unfortunately, with the “Large”. To Kucoin but is trying very hard to make the customers of the exchange to be happy, and it rarely comes to incidents.
Cryptopia is a new Zealand Exchange, which works even without Fiat. Cryptopia is trying to make a professional impression, but it can’t keep up similar to Kucoin in terms of seriousness with the “sizes”. You can find there many Altcoins that you can find nowhere else. Problems there are, however, rather rare. If you are wondering how to get on Cryptopia, then you can find here the ultimate Guide.
7. Decentralized Exchanges
The big Problem with most stock exchanges, however, is the “confidence” that you have to bring that up with the money to make while you have it stored on your platform. To solve this Problem for decentralized Exchanges. While using a decentralised stock exchange, the Coins remain the whole time in their own possession, which makes them theoretically more secure. In addition, decentralized exchanges can work cheaper and without the KYC offer their services.
It is widely believed that decentralized exchanges are the future of crypto-trade. Also Binance is working on a decentralized Binance Version. The Problem is what most local stock exchanges have at this time is: they are user-unfriendly, have no Support and little trading volume. However, the show slowly changes for the better in this regard.
Of course, there are plenty of other exchanges. And even if the Kraken CEO Jesse Powell has referred to the Investigation of the state of New York as “a controlling Ex who is trying to be a pain in a 3 years after the relationship”…
NY is that abusive, controlling ex you broke up with 3 years ago but they keep stalking you, throwing shade on your new relationships, unable to accept that you have happily moved on and are better off without them. #getoverit https://t.co/DC5S1WyRnp
— Jesse Powell (@jespow) September 19, 2018
… So, it may, under certain circumstances, however, the results of the report are worth reading in order to make a more informed decision on which stock exchange you want to say now finally be trusted.
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