Slippage in crypto trading is the gap between the price you expect when you place a trade and the price where it actually executes. Because crypto moves fast, that gap can work in your favor (positive slippage) or against you (negative slippage).
You cannot remove slippage completely. But if you understand why it happens and how to manage it, you can reduce unnecessary losses.
Understanding slippage in crypto
Slippage is the difference between the price you aim for when you place a trade and the price you actually get when it fills.
- Positive slippage: your order fills at a better price than expected.
- Negative slippage: your order fills at a worse price than expected.
Quick example: you try to buy at 2,500. It fills at 2,505. That 5 point difference is negative slippage.
What causes slippage
Most slippage comes from two things: fast price moves and shallow liquidity.
- Market volatility
Crypto can jump or drop in seconds. Prices may change between your click and the fill, so the trade executes at a different level than you saw. - Low liquidity
Liquidity is how easily you can trade without moving the price. If the order book is thin on a centralized exchange, a market order chews through nearby quotes and slips to worse ones.
Other contributors include:
- Large order size relative to the market or pool
- Network congestion or slow confirmations that delay fills
- Automated market maker pricing on DEXs, where bigger swaps move the pool price more as size grows
- Trading bots that reorder transactions on some chains, which can worsen your final price (often called MEV or sandwiching)
Slippage on decentralized platforms
On decentralized exchanges (DEXs), trades go through liquidity pools. Prices are set by a pricing formula that updates with every swap. Big trades move the pool price along the curve, which creates price impact and slippage.
Most DEXs let you set a slippage tolerance. If the price moves beyond your limit before the trade executes, the transaction reverts. That protects you from bad fills, but you may still pay gas on some chains when a trade fails. You might need to resubmit once the market is calmer.
How to minimize slippage
A simple checklist for centralized exchanges (CEX) and DEX:
- Use limit orders on centralized exchanges. A limit only fills at your price or better.
- Set a slippage tolerance on DEXs. On deep, stable pairs use 0.1% to 0.5%. On volatile or illiquid pairs use 1% to 3% and consider smaller trades.
- Prefer routes and pairs with more total liquidity, even if there are extra hops.
- Split large orders into smaller pieces to reduce price impact.
- Set a short transaction deadline so stale quotes do not slip through.
- Trade during peak liquidity hours. Activity is often highest when U.S. and European sessions overlap.
- Use MEV protection or private order options where available to reduce front running risk.
Where you can trade WMTx (DEX)
WMTx is not immune to slippage. Pools get deeper or thinner over time, and price impact changes with size and timing. Pick the chain you are on, then choose the venue with the most reliable liquidity.
By network
- Cardano: Minswap for ADA pairs, and WingRiders as an alternative route
- Base: Aerodrome for WETH routes
- Ethereum: Uniswap if you need mainnet integrations
- BNB Chain: PancakeSwap for swaps
Bridging between chains
If your WMTx is on the wrong chain, move it first, then swap.
- Base to World Mobile Chain: How to Bridge WMTx from Base to WMC
- Cardano to Base: Step by step guide
Two quick tips before you swap
- Always confirm you are using the correct WMTx contract.
- If a pool looks thin, lower your order size or wait for better liquidity rather than cranking slippage higher
Key takeaways
- Slippage is the gap between expected and executed prices.
- It can be positive or negative, but negative is more common in fast markets.
- Volatility and low liquidity are the main causes.
- Limit orders, slippage tolerance, deeper liquidity, smaller order sizes, and good timing all help reduce the impact.