2026-01-12 01:25:36

Wash trading is a frequently discussed topic in the crypto circle. Different traders have vastly different understandings of it.

Some believe that wash trading is about clearing out floating positions, with the goal of driving away those with weak resolve, so that when the price is pushed up later, selling pressure will be smaller and the market will be smoother. Another group thinks that wash trading has a bottom line — the decline shouldn't be too deep, or else recovery will take longer and the rebound cycle will be extended. There are also more straightforward opinions: wash trading is simply a pseudo-concept, and people just use it as an excuse for a decline. According to this logic, if everyone is optimistic, then everyone only wants to buy and not sell, and there would be no decline at all.

My personal view is that rather than getting caught up in whether wash trading exists or not, it's better to treat it as a technical term. Just like a person can be called Zhang San or Li Si, a name itself has no good or bad connotation. The key is understanding the core concept it represents and knowing how to apply it in actual trading. That is what truly matters.

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GasFeeNightmare

· 01-12 01:55

Basically, it's just giving a name to your losses to make yourself feel better, haha. I agree with the pseudo-concept of "shakeout," anyway, if it drops, it drops—no need to pretend with fancy terminology. The name really doesn't matter; the key is just not to get cut. All these explanations are less straightforward than just looking at the candlestick charts. Every time people hype up a shakeout, but it just keeps going down—it's hilarious.

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0xInsomnia

· 01-12 01:53

Basically, wash trading is just a psychological game, just to scare off the retail investors. Instead of arguing whether this term is correct or not, it's better to learn how to survive and watch it unfold. The explanation is thorough; the name doesn't matter. Making money is the real key. It's the same old theory—who the hell can precisely hit the bottom in reality? That's probably why most people end up losing money in the end. No matter how many terms there are, they can't save someone from getting caught. Flip it over and over, there are only three or five patterns; once you've seen them once, you basically understand everything. So in the end, it still comes down to luck and execution; theories aren't that valuable. Makes sense, makes sense, but in the crypto world, no one can really stay calm.

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ShitcoinConnoisseur

· 01-12 01:45

In plain terms, debating whether wash trading exists is just a waste of time. Those who are truly making money are studying how to use it, rather than arguing about the definition of the concept.

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GweiWatcher

· 01-12 01:42

Well, basically it's about how you interpret this term. Don't get stuck on the name.

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