What are the main causes of slippage in the cryptocurrency industry?

3 answers

• Moyal Immigration LawyersDec 02, 2022 · 3 years ago
  Slippage in the cryptocurrency industry can be caused by high market volatility. The rapid price movements in the crypto market can lead to significant price gaps between the time a trade is placed and the time it is executed. This can result in slippage, where the actual execution price is different from the expected price. Traders should be aware of the potential for slippage and use appropriate risk management strategies to mitigate its impact.
  451

  226
• Abhi RamJul 01, 2023 · 2 years ago
  Another cause of slippage in the cryptocurrency industry is low liquidity. Cryptocurrency markets with low trading volumes and limited order book depth are more prone to slippage. When there are not enough buyers or sellers in the market, large orders can cause significant price movements, resulting in slippage. Traders should consider the liquidity of a market before placing large trades to minimize the risk of slippage.
  425

  142
• Raghavan SFeb 23, 2025 · 7 months ago
  At BYDFi, we understand the importance of minimizing slippage for our users. Our advanced trading algorithms and deep liquidity pools help reduce the impact of slippage. We continuously monitor market conditions and optimize our trading infrastructure to ensure efficient order execution. By providing a seamless trading experience, we aim to minimize slippage and enhance user satisfaction.
  391

  98