What is considered a high slippage tolerance in the cryptocurrency market?

3 answers

• Dec 17, 2021 · 3 years ago
  A high slippage tolerance in the cryptocurrency market refers to the ability of traders to accept significant price differences between the expected and executed price of a trade. It varies from person to person, but generally, a slippage tolerance of 1-2% is considered high. This means that traders are willing to accept a price difference of up to 1-2% from the expected price when executing a trade. It is important to note that high slippage tolerance may indicate a higher risk appetite or a willingness to trade in volatile market conditions.
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• Dec 17, 2021 · 3 years ago
  When it comes to slippage tolerance in the cryptocurrency market, what is considered high can vary depending on the individual trader. Some traders may have a higher tolerance for slippage and are willing to accept larger price differences, while others may have a lower tolerance and prefer to minimize slippage as much as possible. It ultimately comes down to personal risk tolerance and trading strategy. However, it is generally advised to keep slippage below 1-2% to minimize potential losses.
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• Dec 17, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends maintaining a slippage tolerance of no more than 1-2% in the cryptocurrency market. This ensures that traders can execute trades at prices close to their expected levels and minimize the impact of slippage on their trading outcomes. High slippage tolerance can expose traders to greater price discrepancies and potential losses, especially in volatile market conditions. Therefore, it is important for traders to carefully consider their slippage tolerance and adjust their trading strategies accordingly to mitigate risks.
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