What is SLIPPAGE in Crypto? Explained in 3 Minutes

Summary

Slippage is the difference between the expected price of a trade and the actual price at execution. CoinGecko explains why slippage happens (low liquidity, large trades, volatile markets), how to set slippage tolerance on DEXs, and how to minimize its impact.

Key Concepts

Things To Remember

• Slippage occurs when the price moves between order submission and execution.
• Low-liquidity tokens have higher slippage.
• Setting a slippage tolerance on DEXs protects you from extreme price moves.
• Very high slippage settings make you vulnerable to MEV sandwich attacks.

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