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

3 answers

• Abhinandan ChoudharyApr 24, 2021 · 4 years ago
  Slippage in cryptocurrency markets refers to the difference between the expected price of a trade and the actual executed price. It occurs due to the high volatility and liquidity issues in these markets. Common causes of slippage include market orders, large order sizes, low liquidity, and high-frequency trading. To avoid slippage, you can use limit orders instead of market orders, break large orders into smaller ones, trade during high liquidity periods, and avoid trading during volatile market conditions.
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• Pratiyush Kumar SinghMay 24, 2024 · a year ago
  Slippage in crypto markets can be a real pain, but understanding its causes can help you avoid it. One common cause is the difference in order book depth between the exchange you're trading on and other exchanges. This can lead to price discrepancies and slippage. Another factor is the speed of your internet connection. Slow internet can cause delays in order execution, resulting in slippage. To minimize slippage, consider using exchanges with deep order books and fast trading engines, and make sure you have a reliable internet connection.
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• Kenny SellersMay 15, 2024 · a year ago
  Slippage is a common issue in cryptocurrency markets and can be caused by various factors. One factor is the lack of liquidity in certain trading pairs, especially for less popular cryptocurrencies. This can lead to wider spreads and slippage when executing trades. Another factor is the presence of high-frequency traders who can quickly move the market and cause slippage for retail traders. To minimize slippage, you can choose more liquid trading pairs, use limit orders instead of market orders, and avoid trading during periods of high volatility. At BYDFi, we prioritize liquidity and provide advanced trading tools to help users minimize slippage.
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