When trading cryptocurrencies, it is essential to be aware of the risks that come with them. One of those risks is slippage. Slippage can occur when you try to buy or sell a cryptocurrency at a specific price, but the order does not go through at that price. As a result, you may purchase or sell the cryptocurrency for a higher price than you intended. This blog post will explain Maiar slippage and how it can affect your trading transactions. We will also provide tips on minimizing the risk of slippage occurring in Maiar Dex. So, if you want to learn more about this topic, keep reading!
Why is there a Slippage on Crypto Exchanges like X Exchange?
The main reason slippage occurs is that the order book on most cryptocurrency exchanges is not deep enough.
The order book is a list of all the buy and sells orders placed on an exchange. The depth of the order book refers to the number of buys and sell orders available at each price level. A shallow order book means not many buy or sell orders are available at each price level. That can lead to slippage because if there is a lot of demand for a certain cryptocurrency, the order might not go through at the desired price. As a result, you would have to pay a higher price to fill your order.
For example, at the launch of the ride token in the Maiar exchange, there was extremely high demand for it, and people had to set their slippage up to 10-20%. However, if they want to buy the same token now, even with 0.1% slippage, their order will go through as the demand is low. But usually, the slippage is very low in Maiar Dex when swapping the tokens.
How to Avoid Slippage on Crypto Exchanges like X Exchange?
There are a few things that you can do to minimize the risk of slippage occurring on crypto exchanges like X Exchange.
- Firstly, you can try to avoid trading during times of high volatility. When the market is moving rapidly, it is more likely that you will experience high slippage. By avoiding times of high volatility, you can minimize the risk of your orders being filled at a price different from what you were expecting.
- Secondly, you can try to use a crypto exchange that offers low or no fees. Some exchanges charge high fees, which can affect your profits if you experience slippage. By using an exchange that charges low or no fees, you can help to minimize the impact of slippage on your bottom line. In the case of X Exchange, the fees are almost zero.
- Finally, try to be fast when placing your buy or sell orders. If you are slow to place an order, it is more likely that the price will move before your order is filled. That can lead to slippage. So, to avoid slippage, it is crucial to be quick. For example, when buying or selling cryptos in X Exchange, you must sign multiple transactions, which might take some time. Still, you can reduce it if you use two devices. One device to trade tokens and another to sign the transactions.
Slippage can be risky when trading cryptocurrencies, especially in a highly volatile market where thousands of people are trying to buy the “same” crypto simultaneously. Therefore, it is vital to be aware of the factors that can lead to slippage and to take steps to minimize the risk of it occurring. Make sure not to be greedy and place your orders with the proper strategy. Thanks for reading!