’Sandwich traders’ are making a fortune on cryptocurrency. The vast majority of them are bots

<p>The best part of any sandwich is usually found between the slices of bread.</p> <p>When it comes to cryptocurrency trading, though, being trapped in the middle of a sandwich trade is far from ideal, and it usually means you've been beaten by a machine.</p> <p>Cryptocurrency trading is not limited to humans. Developers construct and deploy bots to automate bitcoin trading. According to a recent Bloomberg story, these bots have amassed hundreds of millions—and maybe billions—of dollars in earnings across the Ethereum ecosystem in recent years by employing a popular strategy known as "sandwich trading."</p> <p>"Sandwich trading" refers to the method by which a bot is built by software engineers to detect when another trader attempts to purchase a token or a piece of cryptocurrency on a blockchain network, such as Ether or Cardano. The bot then places an order on the same token. If the bot is successful in completing the buy before the other trader, the price of the in-demand token will rise. However, it's possible that the person who was attempting to purchase the token in the first place still desires it. That is when the bot "finishes the sandwich" and sells the token to the trader at a higher price than the trader would have paid if the bot had never appeared.</p> <p>Even though it's unsportsmanlike, experts informed Bloomberg that sandwiching trades are a legal method of blockchain trading.</p> <p>Developers deploying these bots have totally swamped the Ethereum market in recent years, amassing tremendous profits along the way. The strategy has been so successful that, according to Bloomberg, it has become more difficult for other traders using bots to make money on Ethereum...because there are so many bots.</p> <p>As a result, traders are now sending their bots to do a sandwich manoeuvre on smaller blockchains such as Solana, Polygon, and Avalanche. According to recent reports, several of these blockchains are dealing with the sudden exponential spike in traffic.</p> <p>After months of experiencing ma