How can traders protect themselves from slippage when trading cryptocurrencies?

3 answers

• Dec 28, 2021 · 3 years ago
  One strategy traders can use to minimize slippage when trading cryptocurrencies is to place limit orders instead of market orders. By setting a specific price at which they are willing to buy or sell, traders can avoid the potential for slippage that can occur with market orders. This allows them to have more control over their trades and reduce the risk of unexpected price fluctuations impacting their transactions.
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• Dec 28, 2021 · 3 years ago
  Another way traders can protect themselves from slippage is by using stop-loss orders. Stop-loss orders automatically trigger a trade when the price of a cryptocurrency reaches a certain level. By setting a stop-loss order, traders can limit their potential losses and avoid slippage in case the price suddenly drops. It's important to note that stop-loss orders may not always be executed at the exact specified price, but they can still help mitigate slippage.
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• Dec 28, 2021 · 3 years ago
  At BYDFi, we recommend traders to use our advanced trading platform that offers features like limit orders, stop-loss orders, and real-time market data. These tools can help traders protect themselves from slippage and make more informed trading decisions. Additionally, staying updated with the latest market news and trends can also be beneficial in minimizing slippage risks.
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