Yesterday, I just gained a clearer understanding of a problem that many new traders often encounter – that is, when you execute a trade but the price is completely different from what you expected. This is called slippage, and it’s quite common, especially during volatile market conditions.

I’ve experienced significant slippage when trading some tokens with low liquidity. This phenomenon occurs because from the moment you press the buy/sell button until the trade is actually processed, the price has already changed. This waiting time, even just a few seconds, is enough in the crypto market to change everything.

The good thing is that slippage can work both ways. Sometimes you’re lucky and get a better price than expected – this is called positive slippage. But more often, you end up with a worse price, and that’s when it starts to affect your profits.

As I’ve learned, when trading on DEXs like PancakeSwap, you can set a slippage tolerance threshold. This method helps you control the amount of price fluctuation you’re willing to accept, rather than leaving it to chance.

I’m curious, have you ever encountered a slippage situation? Which token surprised you the most? Recently, I’ve been trading tokens like SOL, BTC, XRP, and this experience has made me more careful when placing orders.