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You’ve probably encountered this situation before – just after pressing the buy button, the price turns out to be completely different from what you saw on the screen. That’s exactly what slippage is, and today I’ll explain it.
What is slippage? Simply put, it’s the difference between the price you expect when executing a trade and the actual price you receive when the trade is completed. This phenomenon occurs because the market is always changing, especially when you trade tokens with low liquidity or during high market volatility.
I see there are two basic types of slippage. The first is positive slippage – when you’re lucky enough to get a better price than expected, which is a good thing. The second is negative slippage – when the price turns out worse than anticipated, and that’s when you might feel a bit annoyed.
So what is slippage and how can you control it? On DEX platforms, you can set the acceptable slippage tolerance. This helps protect you from unexpected price swings. A good tip is to always check the slippage level before confirming a trade, especially with less-traded tokens.
Essentially, slippage is a natural part of the crypto market. Understanding it will help you trade more intelligently. I’m curious – have you ever experienced negative slippage? Which token made you the most uncomfortable? Share your stories below; I’d love to hear them.