What are the common causes of slippage in cryptocurrency exchanges and how can I avoid them?

9 answers

• Tychsen CurrieDec 08, 2023 · 2 years ago
  Slippage in cryptocurrency exchanges refers to the difference between the expected price of a trade and the actual executed price. It commonly occurs when there is high volatility, low liquidity, or a large order size. To avoid slippage, you can consider using limit orders instead of market orders, as limit orders allow you to set a specific price at which you want to buy or sell. Additionally, you can also split your orders into smaller sizes to minimize the impact on the market.
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• Ken KollmeyerJan 06, 2021 · 5 years ago
  Slippage is like that moment when you're about to buy a pizza, and the price suddenly goes up right before you place your order. In cryptocurrency exchanges, slippage happens when the price you expect to buy or sell at is different from the actual executed price. It can be caused by various factors such as market volatility, low liquidity, and even technical issues on the exchange. To avoid slippage, you can try placing limit orders instead of market orders, and also consider trading during periods of higher liquidity.
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• McGarry CarrNov 17, 2020 · 5 years ago
  Slippage in cryptocurrency exchanges can be a real pain, but there are ways to minimize its impact. One common cause of slippage is when the market is highly volatile, with prices changing rapidly. To avoid this, you can set limit orders with a specific price range, so your trade will only be executed within that range. Another factor that contributes to slippage is low liquidity, meaning there are not enough buyers or sellers in the market. In such cases, you can try trading on exchanges with higher liquidity or splitting your orders into smaller sizes to avoid impacting the market too much. Oh, and by the way, at BYDFi, we have implemented advanced trading algorithms to help reduce slippage for our users.
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• baoyou10Dec 02, 2021 · 4 years ago
  Slippage in cryptocurrency exchanges can occur due to a variety of reasons. One common cause is when there is a sudden surge in trading volume, causing the market to become more volatile. Another factor is low liquidity, which means there are not enough buyers or sellers to match your trade at the desired price. To avoid slippage, you can try placing limit orders instead of market orders, as limit orders allow you to set a specific price at which you want to buy or sell. Additionally, you can also consider trading during periods of higher liquidity or using exchanges with deeper order books.
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• Software GeekJun 30, 2024 · a year ago
  Slippage in cryptocurrency exchanges is a common issue that traders face. It occurs when the price at which you want to execute a trade is different from the actual executed price. This can happen due to market volatility, low liquidity, or even delays in order execution. To avoid slippage, you can use limit orders instead of market orders, as limit orders allow you to specify the maximum price you are willing to pay or the minimum price you are willing to sell at. Another way to minimize slippage is to trade on exchanges with higher liquidity, as they tend to have tighter bid-ask spreads.
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• Sudhanshu BurileOct 20, 2024 · 9 months ago
  Slippage in cryptocurrency exchanges can be frustrating, but there are ways to mitigate its impact. One common cause of slippage is when there is a sudden influx of buy or sell orders, causing the market to move quickly. To avoid this, you can try placing limit orders with a specified price, so your trade will only be executed if the price falls within that range. Another factor that contributes to slippage is low liquidity, which means there are not enough buyers or sellers in the market. In such cases, you can consider trading on exchanges with higher trading volumes or splitting your orders into smaller sizes to minimize the impact on the market.
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• Nicolas FabreJun 23, 2025 · a month ago
  Slippage in cryptocurrency exchanges can occur due to various factors. One of the main causes is market volatility, where prices can change rapidly, leading to a difference between the expected and executed price. Another factor is low liquidity, which means there are not enough buyers or sellers in the market to match your trade at the desired price. To avoid slippage, you can use limit orders instead of market orders, as limit orders allow you to set a specific price at which you want to buy or sell. Additionally, you can also consider trading during periods of higher liquidity or using exchanges with deeper order books to minimize slippage.
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• Dhanraj brSep 01, 2021 · 4 years ago
  Slippage in cryptocurrency exchanges can be a headache for traders. It occurs when the price you expect to buy or sell at is different from the actual executed price. One of the main causes of slippage is market volatility, where prices can fluctuate rapidly. Another factor is low liquidity, which means there are not enough buyers or sellers in the market. To avoid slippage, you can try placing limit orders instead of market orders, as limit orders allow you to set a specific price at which you want to execute your trade. Additionally, you can also consider trading on exchanges with higher trading volumes or using trading bots that can help you execute trades more efficiently.
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• kutaevOct 07, 2022 · 3 years ago
  Slippage in cryptocurrency exchanges can be a real pain, but there are ways to minimize its impact. One common cause of slippage is when the market is highly volatile, with prices changing rapidly. To avoid this, you can set limit orders with a specific price range, so your trade will only be executed within that range. Another factor that contributes to slippage is low liquidity, meaning there are not enough buyers or sellers in the market. In such cases, you can try trading on exchanges with higher liquidity or splitting your orders into smaller sizes to avoid impacting the market too much.
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