#Exchanges

Do exchanges manipulate prices?

Cryptocurrency exchanges, especially the larger and more regulated ones like Binance, Coinbase or Kraken, do not directly manipulate prices, as their main function is to facilitate buying and selling between users and earn revenue from commissions. However, there are certain market practices that can affect prices, and below I explain how some exchanges can influence them indirectly or through certain market mechanics.

In short, large exchanges do not directly manipulate cryptocurrency prices on their platforms, as their business model is based on earning revenue from transaction fees. However, some practices such as wash trading, futures liquidation, spread management in low-liquidity markets, and order book manipulation have been reported on less regulated exchanges and can affect the price. To minimize these risks, it is best to operate on regulated exchanges that offer transparency and security in their transactions.