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Crypto Slippage: Why Prices Change During Trades

Slippage occurs when a trader settles for a different price than expected between the time they submit a transaction and the time it is confirmed on the blockchain.

Why Slippage Happens

1. High Volatility: Prices in crypto move fast. By the time your transaction hits a block, the price may have shifted.
2. Low Liquidity: In pools with low liquidity, a large order can significantly move the price (Price Impact).

Setting Slippage Tolerance

Most wallets (like MetaMask) or DEXs (like Uniswap) allow you to set a percentage. If the price moves more than your tolerance (e.g., 0.5%), the trade will fail to prevent you from getting a bad deal.

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