What is wash trading in crypto?

What Is Wash Trading in Crypto?

Wash trading is when someone trades with themselves (or coordinated parties) to create fake volume and the appearance of activity. It can make a token or exchange look more popular than it is. Some exchanges have been accused of wash trading. As a user, you cannot easily verify true volume. Prefer well-known exchanges and coins with clear fundamentals. Do not trust volume alone. In India, your real trades are still taxable; wash trading by others does not change your reporting.