What is Slippage in Crypto Trading and How to Avoid It on Xoibit

What is Slippage in Crypto Trading and How to Avoid It on Xoibit

🧠 Introduction

Ever placed a trade expecting one price but got something different? That’s called slippage, and it’s a common (and often frustrating) part of trading crypto — especially in fast-moving markets.

In this blog, we’ll explain what slippage is, why it happens, and how you can minimize or avoid it while trading on Xoibit.

💱 What is Slippage?

Slippage occurs when the executed price of a trade is different from the expected price.

It usually happens when:

• The market is volatile
• There’s low liquidity (few buyers/sellers)
• You’re using market orders instead of limit orders

Example: You place a market buy for BTC at $30,000, but it executes at $30,200 — the $200 difference is slippage.

📉 Types of Slippage

1. Positive Slippage

• You get a better price than expected
• Rare, but possible in slow markets

1. Negative Slippage

• You get a worse price than expected
• Most common during volatile times

🧪 Why Slippage Happens

Slippage is part of how market orders work. They fill at the best available price, and if liquidity is thin or prices change quickly, the fill might not match what you saw initially.

Common causes:

• High volatility (major news, market movements)
• Large order sizes
• Low trading volume

📍 How to Avoid Slippage on Xoibit

✅ 1. Use Limit Orders

Set a specific price you want to buy or sell at. The order will only execute if the market reaches your target.

✅ 2. Trade in Highly Liquid Pairs

Stick to major pairs like BTC/USDT, ETH/USDT, etc., where slippage is less likely.

✅ 3. Avoid Trading During High Volatility

News events, exchange outages, or big dumps/pumps can cause huge price swings. Be cautious.

✅ 4. Break Large Orders into Smaller Ones

Instead of one large market order, try several smaller limit orders to reduce price impact.

🧠 How Xoibit Helps You

• Xoibit’s platform shows you order book depth, helping you anticipate slippage.
• Use our Convert feature for small trades with minimal impact.
• Advanced traders can set slippage tolerance (coming soon).

🛡️ Risk Management Tip

Combine slippage prevention with:

• Stop-loss orders
• Take-profit targets
• Portfolio allocation rules

This ensures you stay in control, even when the market isn't.

✅ Conclusion

Slippage is normal in crypto trading, but that doesn’t mean you can’t manage it. With smart tools and strategies on Xoibit, you can reduce the risk and trade with more confidence.

Know your trades. Protect your entries. Trade smart with Xoibit.