How Bots Are Fueling High-Speed Bitcoin Trading
Cryptocurrency traders can potentially derive great benefit from algorithm trading in such a new market.
Having smaller orders in essence fools the market into thinking there is not much interest at those price levels when in fact there is.
FCSA said Mirror Trading's self-proclaimed 10% monthly returns "seems far-fetched and unrealistic" as it opened an investigation.
The strategy has also contributed to higher gas fees and blockchain bloat.
DeFi trading bots create "walls of executions," resulting in higher rewards for Ethereum miners, higher profits for traders and higher fees for everyone.
Arbitrage bots are exploiting "inefficiencies" in decentralized cryptocurrency exchanges, according to a Cornell Tech study.