Safety and scamsIntermediate
Wash trading
Wash trading is one party buying from and selling to itself to fake volume and activity.
- What it means
- The volume looks busy, but little real trading happens, so volume figures and volume rankings can overstate interest in the token.
- What to watch
- High volume while the price barely moves and holders hardly grow, and the same few wallets on both sides of the trades.
- How Compass-Alpha uses it
- Background only; not used in any figure on Compass-Alpha.
Free guides and tools
Crypto Fear & Greed IndexBitcoin DCA calculatorCrypto taxCrypto basics
More in Safety and scams
Rug pull warning signs
A rug pull is when the people behind a token take the money from its trading pool and disappear.
Fake airdrops and phishing links
Messages or tokens that promise a free airdrop to lure you to a look-alike website.
Seed phrase safety
A seed phrase is 12 or 24 words that can restore your whole wallet on any device.