April 27, 2024

What is “sandwich trading” cryptocurrency?

What is "sandwich trading" cryptocurrency?

Cryptocurrency trading bots are believed to earn hundreds of millions of dollars, if not billions.profit using a technique known in the industry as "sandwich trading".

According to a recent Fortune report, bots are using this tool to make huge profits in the Ethereum ecosystem.

In essence, the bot is programmed by developerssoftware to detect when another trader is trying to purchase a crypto asset on the blockchain, Ethereum or Cardano. The bot places an order for the same token, hoping to complete the transaction first and raise the price of the asset. The bot then "finishes the sandwich" by selling the token to the original trader at a higher price.

The report claims that developers have floodedthe Ethereum ecosystem by bots, earning a untold fortune at the expense of other traders. According to Bloomberg, this method has become so successful that it is becoming increasingly difficult for developers to use it due to the huge number of such bots.

Sandwich trading bots have spread to other blockchains, notably Solana, Polygon, and Avalanch, loading their networks and even causing congestion.

In January, Solana was forced to implement new developments to combat bot traders, including "flow control" measures.

Where is it more profitable to buy cryptocurrency? TOP-5 exchanges

For a safe and convenient purchase of cryptocurrencies with a minimum commission, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposits and withdrawals of funds inrubles, hryvnias, dollars and euros.

The reliability of the site is primarily determinedtrading volume and number of users. By all key metrics, the largest cryptocurrency exchange in the world is Binance. Binance is also the most popular crypto exchange in Russia and the CIS, since it has the largest cash turnover and supports transfers in rubles from bank cardsVisa / MasterCardand payment systemsQIWI, Advcash, Payeer.

Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?

Rating of cryptocurrency exchanges:

# Exchange: Website: Rating:
1 Binance (Editor's Choice) https://binance.com 9.7
2 Huobi https://huobi.com 7.4
3 Exmo https://exmo.me 6.9
4 OKEx https://okex.com 6.5
5 Bybit https://bybit.com 6.3

The criteria by which the rating is set in our rating of crypto-exchanges:

  • Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
  • Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
  • Additional features and services— futures, options, staking, NFT marketplace.
  • Feedback and support– we analyze user reviews and the quality of technical support.
  • Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
  • final grade– the average number of points for all indicators determines the place in the ranking.

What is "sandwich trading" cryptocurrency?

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