What are the best strategies to deal with slippage in crypto trades?

6 answers

• Dec 25, 2021 · 3 years ago
  One of the best strategies to deal with slippage in crypto trades is to use limit orders instead of market orders. By setting a specific price at which you want to buy or sell, you can avoid the risk of getting executed at a worse price due to market volatility. This allows you to have more control over your trades and reduce the impact of slippage.
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• Dec 25, 2021 · 3 years ago
  Another strategy is to use stop-loss orders to limit potential losses caused by slippage. By setting a stop-loss order at a certain price level, you can automatically sell your assets if the price drops below that level. This helps to protect your investment and minimize the impact of slippage in downward market movements.
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• Dec 25, 2021 · 3 years ago
  At BYDFi, we recommend using advanced trading features like limit orders with time-in-force options. This allows you to specify the duration for which your order will remain active in the market. By using options like 'Good 'Til Cancelled' or 'Immediate Or Cancel', you can optimize your chances of getting executed at the desired price and reduce the risk of slippage.
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• Dec 25, 2021 · 3 years ago
  In addition to using different order types, it's important to stay updated with the latest market trends and news. By keeping an eye on market liquidity, order book depth, and trading volumes, you can anticipate potential slippage and adjust your trading strategies accordingly. This proactive approach can help you minimize the impact of slippage and make more informed trading decisions.
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• Dec 25, 2021 · 3 years ago
  When dealing with slippage, it's crucial to have realistic expectations and avoid chasing unrealistic gains. Slippage is a natural part of trading, especially in volatile markets like cryptocurrencies. Setting reasonable profit targets and being patient with your trades can help you avoid impulsive decisions that may lead to higher slippage.
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• Dec 25, 2021 · 3 years ago
  Lastly, diversifying your trading across multiple exchanges can also help mitigate the impact of slippage. Different exchanges may have varying liquidity and order book depth, which can affect the execution price. By spreading your trades across multiple platforms, you can increase the chances of getting executed at a favorable price and reduce the overall impact of slippage.
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