Fake volume is the plague of the cryptocurrency industry. Many exchanges are rife with made-up numbers which intend to make their service look more popular than it actually is. It’s a bit of a catch 22, people don’t want to trade somewhere with no volume and you can’t create fake volume if you want to succeed. With this premise heavily engraved in the average crypto-traders brain, it’s hard to trust that exchanges are telling the truth when it comes to volume reporting. Cryptocurrency traders want high levels of volume as it means that they can trade with less slippage and have bigger order sizes.
With this in mind, let’s take a look at Bybit, a fairly new crypto exchange which has taken the world by storm for it’s high levels of customer service, transparency and decent liquidity. So, does Bybit fake volume?
No, Bybit does not fake volume on any of the pairs listed on the exchange. Bybit built their liquidity up by heavily promoting the exchange and by offering enticing bonuses to prospective traders.
If you would like to sign up to Bybit, click here to redeem a $90 welcome trading bonus.
How can you trust their word?
Well, in reality, you have to, there’s no way to really tell how legitimate an exchange’s volume is. On the other hand, there are certain tell-tale signs which show you that an exchange is legitimate with what they say. I believe that at the forefront of this is transparency, Bybit is extremely transparent in the way they conduct business and this gives me greater confidence in their word about the volume on the exchange.
Fake volume, will it disappear?
Getting rid of all the fake volume, in my opinion, would be the best thing for the longevity of the digital asset trading industry. There are ways in which we can limit the amount of fake volume being shown by exchanges. In the most part, this could be through third party validation checks which verify the volume of each individual exchange, it would be extremely positive for the industry in my personal opinion.
To learn more about the Bybit exchange, check out some of our other Bybit guides:
William Hurrell is a digital currency entrepreneur based in the United Kingdom who runs a digital marketing company called Black Sands Media LTD. William got his first Bitcoin in 2014 and has been involved in the industry ever since.