What Is Slippage in Crypto? Causes and How to Minimize It

If you've ever placed a trade expecting one price but ended up with another, you've experienced slippage—and likely felt how disruptive it can be. While slippage occurs across all financial markets, it’s especially common in crypto, where volatility moves quickly and price certainty can be fleeting. Whether you're buying Bitcoin or swapping tokens on a decentralized exchange (DEX), the number you click isn't always the one you get.

Crypto slippage is a byproduct of fast-moving markets and fluctuating liquidity. Left unmanaged, it can eat into profits or turn a winning trade into a losing one. But understanding why slippage happens, when it’s most likely, and how to mitigate it gives you a strategic edge. Slippage may be the cost of speed in crypto—but with the right timing, tools, and awareness, it’s a cost you can anticipate and control.

What Is Slippage in Crypto? 

Slippage happens when there’s a difference between the price you expect for a trade and the price it’s filled at. You go to buy or sell, the market shifts mid-click, and your order hits at a slightly different level. That’s slippage.

It sounds bad, but sometimes it works in your favor. Say you’re trying to buy ETH at $1,800, and your order fills at $1,798 instead. Great. You saved $2 per coin. More often, though, traders have to deal with negative slippage. You plan to sell at $1,800, but due to a quick price dip, your order executes at $1,792. That $8 difference might not seem like much, but on a big order, it adds up fast.

Slippage isn’t an exchange glitch. It’s a natural result of how crypto markets move and how orders are filled. Whenever you use a market order, you’re asking for it to be filled as soon as possible, at the best available price. But if prices jump around or liquidity tanks, you won’t always get the outcomes you expect. 

Crypto slippage is normal, but it's not harmless. If you're not paying attention, it can quietly eat into your profits over time. But once you know how it works, you can start trading with it, not against it.

Causes of Slippage in Crypto Trading

Slippage in crypto doesn’t come from nowhere. It’s caused by a few specific things, most of which you can monitor, avoid, or work around once you know what to look for.

Common causes include: 

Market Volatility: Crypto markets move fast. Sudden price swings—often triggered by major news, economic data, or sharp Bitcoin moves—can cause your order to fill at a better or worse price than expected if the market shifts during execution.

Low Liquidity: Liquidity refers to how easily assets can be bought or sold without affecting price. In thin markets or during off-hours, a lack of matching buy/sell orders can result in slippage, especially with low-cap tokens.

Large Order Sizes: Placing a large order in a thin market can move the price against you. When liquidity at your desired price level is exhausted, your trade continues across worse price levels, increasing slippage.

Network Congestion: Primarily an issue on decentralized platforms, network delays—common during token launches or NFT mints—can stall transaction confirmation. By the time it processes, market prices may have already changed.

Sometimes, even your strategy makes a difference. Set your slippage tolerance too tight, and trades on DEXs may fail; too loose, and you risk much worse execution than expected.

The good news? Slippage is manageable. With smarter timing, the right platform, and well-placed orders, you can significantly reduce its impact.

Types of Slippage in Crypto Trading

Depending on the situation and where you’re trading,  slippage can show up for different reasons. Understanding the types of slippage crypto traders face makes it easier to figure out what’s happening behind the scenes when your trade hits a price you didn’t expect. Types include: 

Price Slippage

Price slippage happens when the market moves between the time you place your order and the time it actually goes through. Maybe Bitcoin was trading at $27,400 when you hit "Buy," but by the time the order lands, it's up at $27,470. That’s price slippage. Markets don’t pause while your order gets processed.

Liquidity Slippage

Liquidity slippage is about depth, or lack of it. If there aren’t enough buyers or sellers at your chosen price, your order gets filled at the next best available level. With small-cap coins or during off-hours, this can mean slipping further down the order book than you planned. The bigger the order, the bigger the problem.

DEX Slippage

If you're trading on a decentralized exchange, like Uniswap, you’re dealing with liquidity pools instead of order books. And here, slippage can get more intense. That’s why DEXs let you set a “slippage tolerance”. You can tell the platform not to fill the trade if the price changes by more than a certain percentage. 

How to Calculate Slippage (The Easy Way)

Slippage is something you can—and should—track. Fortunately, the math is straightforward, and once you start measuring it, you'll gain clearer insight into how slippage impacts your trades over time.

Here’s the formula:

Slippage (%) = ((Executed Price − Expected Price) / Expected Price) x 100

Let’s walk through it with a couple of examples:

Example 1: Buying

• You try to buy a coin for $1.00

• It fills at $1.02

• Slippage = ((1.02 - 1.00) / 1.00) × 100 = 2%

• You paid 2% more than planned.

Example 2: Selling

• You plan to sell at $1.00

• It fills at $0.98

• Slippage = ((0.98 - 1.00) / 1.00) × 100 = -2%

• You earned 2% less than expected.

Tracking slippage over time can uncover valuable patterns—like consistently trading during low-liquidity hours or setting overly wide slippage tolerances on DEXs. Whatever the cause, calculating slippage equips you with the insights needed to refine your execution strategy.

Strategies to Minimize Crypto Slippage

You can’t eliminate slippage, but you can manage it—and experienced traders do just that. Rather than accepting slippage as inevitable, they build habits and strategies to minimize its impact. Here are some key tips:

1. Use Limit Orders Instead of Market Orders

Market orders execute immediately at the best available price, which can lead to unfavorable fills in fast-moving markets. Limit orders, on the other hand, give you control by setting a maximum (or minimum) price. While there's a chance your trade won’t execute, it protects you from sudden price swings.

2. Trade During High-Liquidity Hours

Markets are more stable and spreads are tighter when more participants are active. For crypto, this typically means overlapping time zones—when U.S., European, and Asian markets are all online. Avoid low-activity periods like late nights or weekends unless necessary.

3. Break Up Large Orders

Executing large orders in one go can move the market, especially in low-liquidity assets. Breaking a big trade into smaller chunks helps reduce price impact and smooth out execution.

4. Set Slippage Tolerance Carefully on DEXs

Too low a slippage tolerance can cause failed transactions; too high can lead to poor execution. Aim for a range between 0.1% and 1%, depending on the asset and market conditions. Some trial and error may be required to find the optimal setting.

5. Monitor Market Conditions

Volatility often spikes during major news events or large market moves—especially from Bitcoin. If the market’s surging unpredictably, consider waiting. A few minutes of patience can save you from costly slippage.

How Flipster Helps Manage Slippage

Crypto slippage happens. But some crypto platforms handle it better than others, and Flipster stands out for doing more than most to help you stay in control.

One of Flipster’s key strengths is its deep liquidity and ultra-tight spreads. Whether you're trading Bitcoin or smaller altcoins, the platform has sufficient liquidity to fill most trades cleanly. That means fewer unpleasant surprises between your expected price and your execution price.

Flipster has partnered with Presto Labs, a leading quantitative trading and market-making firm, to enhance trading efficiency through deep liquidity and reduced slippage. This collaboration strengthens Flipster’s infrastructure by ensuring that buy and sell orders are matched quickly and competitively, even during periods of high market volatility. With Presto Labs’ advanced trading strategies and liquidity provisioning, users on Flipster benefit from tighter spreads, smoother execution, and a more stable trading experience—especially for large order sizes or fast-moving markets.  

Slippage Happens, But You Can Manage It

Every trader encounters slippage—it's a natural part of crypto trading, where prices move quickly and liquidity can vanish in moments. But slippage doesn’t have to catch you off guard, and it certainly doesn’t need to derail your trades.

By understanding why slippage occurs and learning how to measure, anticipate, and reduce it, you move from reacting to planning. You start using limit orders, trading during optimal hours, avoiding thin markets, and choosing platforms aligned with your strategy.

That’s where Flipster stands out. With features like automatic slippage caps, fast execution, and zero trading fees, it’s designed to help you trade with confidence and minimize unexpected outcomes.

If you're ready to stop watching trades slip away from your target price, Flipster offers the tools to take control—right at your fingertips.

FAQs

What is slippage in crypto trading?

It’s the difference between the price you expect to get when you place a trade and the price you get. It’s common in fast-moving and low-liquidity markets, where the gap can widen suddenly, and astronomically. 

Can slippage be positive?

Yes, slippage can work in your favor. If your trade executes at a better price than expected, for example, buying slightly lower or selling slightly higher, that’s called positive slippage.

How can I minimize slippage?

To reduce slippage, try using limit orders instead of market orders, trade during high-volume hours, avoid large orders in thin markets, and set slippage tolerance carefully (especially on DEXs). Paying attention to timing and liquidity goes a long way.

How does Flipster offer low slippage?

Flipster has partnered with Presto Labs, a leading market maker, to provide deep liquidity and reduce slippage across its trading platform. This ensures tighter spreads, faster execution, and a more stable trading experience—even during high volatility. Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with a significant risk of loss due to its high price volatility, and is not suitable for all investors. Please refer to our Terms.