What is slippage in crypto?
Slippage in crypto is the difference between the price you expect when you place a trade and the price you actually get when it executes. In fast-moving crypto markets, the price can shift in the split second between hitting the button and the trade settling, so you end up buying a little higher or selling a little lower than the quote you saw. A small amount of slippage is normal; large, unexpected slippage is a warning sign, and it is almost always worst on thin, low-liquidity tokens. Understanding it protects you from nasty surprises and from traps set by scammers. This is educational information only, not financial advice.
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Why slippage happens
Slippage comes from the market moving between your order and its execution. On a decentralized exchange, prices are set by a liquidity pool, and your own trade shifts the pool's balance as it fills — so a big order literally moves the price against you as it goes through. The thinner the liquidity, the more each trade moves the price, which is why small-cap and brand-new tokens can slip badly. Volatile, fast-moving markets add even more, since the price is genuinely changing while you trade. Deep liquidity means low slippage; shallow liquidity means high slippage.
Slippage tolerance settings
Most DEXs let you set a slippage tolerance — the maximum price change you will accept before the trade cancels. Set it too low and volatile trades keep failing; set it too high and you can fill at a genuinely terrible price. Crucially, a high tolerance also opens you to a sandwich attack, where a bot spots your pending trade, jumps in front to push the price up, lets you buy high, and sells right after for profit — a common form of MEV. The safe habit is to keep tolerance as low as the trade will allow, and to be very cautious on low-liquidity tokens where you might need a high setting just to trade at all.
How to reduce slippage
You cannot remove slippage entirely, but you can limit it. Trade tokens with deep, healthy liquidity, break a very large order into smaller ones, avoid trading during wild volatility, and keep your slippage tolerance tight. Most importantly, check a token's liquidity before you trade, because thin liquidity is the single biggest cause of ugly slippage and also a red flag for other risks. Browse trending tokens, the newest launches, and discover and vet tokens with a safety score that includes liquidity depth.
Slippage and token safety
Extreme slippage is not just annoying — it can be a symptom of a dangerous token. A coin that only lets you sell with enormous slippage may be a near-slippage trap or even a honeypot, and thin liquidity makes price manipulation easy. Running any token through a safety scanner shows its liquidity and sell-ability up front, so you know what you are walking into before you commit funds.
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What is slippage in crypto — FAQ
What is slippage in crypto?
The gap between the price you expect and the price you actually get, because the market or the liquidity pool moves between your order and its execution.
Why does slippage happen?
Your trade shifts the liquidity pool as it fills and the market keeps moving; the thinner the liquidity, the more the price moves against you.
What is slippage tolerance?
The maximum price change you will accept before a trade cancels. Too high risks a bad fill or a sandwich attack; keep it as low as the trade allows.
Is Stellar Scout free?
Yes — the token safety scanner is free and educational, for Stellar and major multi-chain tokens.
Educational information only, not financial advice. Always do your own research.