Sense

Crypto Lesson with /sense 

What is slippage in a crypto transaction  ? 

Slippage in a crypto transaction refers to the difference between the expected price of a trade and the actual price at which it is executed.

🔍 Why Does Slippage Happen?

Market Volatility
Crypto prices can change rapidly. If the market moves while your order is being filled, you may end up buying or selling at a worse price than expected.

Low Liquidity
If you're trading a large amount or using a token with low trading volume, there may not be enough buyers or sellers at your desired price. Your order "eats through" the available orders, moving the price.

Order Type
Market Orders are most vulnerable to slippage because they execute immediately at the best available price even if it's significantly different than expected.

Limit Orders can avoid slippage, but may not fill if the market doesn’t hit your specified price.

Crypto Quiz with /sense 

Sometimes when making a trade you may be prompted to adjust slippage. When you adjust slippage to a higher percentage, what happens ? 

A - Your market order becomes a limit order

B - It guarantees that your trade will go through 

C - It increases the percentage between the price you expect to pay, and the price at which the order is executed.

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Sorry dear. The correct answer is C. 🥰