MEV: The Hidden "Tax" When You Trade Crypto.

"Why did I get less crypto than I expected?" — How trading bots cut in line to make a profit off your trades.

🕒 2:58 AM

📅 Dec 10, 2025

✍️ By PolakaNagendraReddy

For Example let's take a Supermarket

Imagine you are at a supermarket. You put a loaf of bread in your basket marked at $2.00. You walk to the checkout line.

Suddenly, a robot runs past you, bribes the cashier to go first, and buys every loaf of bread in the store. Because the bread is now "scarce," the price jumps to $2.10.

When you finally get to the register, you have to pay $2.10 for that same loaf. The robot then sells the bread back to the store and keeps the profit.

In crypto, this is called MEV (Maximal Extractable Value).

How it works

When you click "Swap" on a crypto app, your transaction doesn't happen instantly. It sits in a "waiting room" (called the mempool) for a few seconds.

Powerful bots scan this waiting room. If they see you are about to make a big purchase, they play a trick called a "Sandwich Attack"

1. Front-run: They buy the coin right before you, driving the price up.

2. Your Turn:You buy the coin at the higher price.

3. Back-run: They sell their coins immediately after you to lock in a quick profit.

You might only lose a few dollars here and there, but over time, these bots take millions from regular users.

How to stay safe

You can’t stop the bots, but you can make it harder for them:

1. Lower your Slippage: In your settings, don't allow the price to change by more than 0.5% or 1%.

2. Use Protection: Some wallets have "MEV Protection" features that hide your transaction from these bots until the very last second.