5 Reasons Slippage Happens More Often in Crypto

Jakarta, Pintu News – Slippage is one of the most common risks experienced by crypto and cryptocurrency traders, especially when the market is moving fast. This phenomenon occurs when the transaction execution price differs from the expected price, and the difference can be significant. Compared to major forex pairs, slippage in crypto is more common due to different market structure and liquidity characteristics.

1. Thinner and Uneven Crypto Liquidity

The crypto market often looks liquid on the surface, but the depth of the order book can quickly thin out. When a large order comes in, the price can immediately jump to the next level.

In major forex markets, liquidity tends to be deep and stable throughout active sessions. In contrast, with certain cryptocurrencies, liquidity can be fragmented across many exchanges so the best prices are not always available on all platforms.

Also Read: 5 Fun Facts: Bitcoin Often Rebounds in February – Lessons from Historical Data

2. High Volatility Enlarges Slippage

Crypto is known for fast and sharp price movements in a short period of time. Without a major macro catalyst, prices can move several percent in just a matter of minutes.

This kind of volatility is rare in the forex majors which are generally triggered by scheduled economic data. When crypto volatility spikes in off-peak hours, slippage becomes almost inevitable.

3. Wide Spreads and Fast Repricing

Slippage is closely related to the spread, which is the difference between the buy and sell price. In crypto, spreads can widen dramatically when the market is volatile.

Rapid repricing means that the price on screen often lags behind the actual execution price. As a result, traders may enter or exit positions at prices that are far from their original plan.

4. Execution Delays and Technical Factors

Even a slight delay can have a big impact on the crypto market. Internet connections, mobile platforms, and order routing can all add to latency.

In fast-moving markets, a few seconds’ lag is enough to make prices change significantly. This is why slippage is more common in crypto than forex where the infrastructure is more mature.

5. Stop Loss and Chain Liquidation

Slippage most often occurs when stop losses or liquidations are triggered simultaneously. When many positions are forced to close, the order book can be “swept” in one direction.

These chain liquidations are common in the leveraged cryptocurrency market. The price can jump through several levels with no transactions in between.

Practical Ways to Reduce Slippage Risk

Slippage cannot be eliminated completely, but it can be managed. The use of limit orders helps control entry and exit prices.

In addition, choosing crypto assets with large volumes and avoiding low liquidity hours can minimize risk. A reasonable position size strategy is also more effective than a tight stop loss.

Conclusion for Beginner Crypto Traders

Slippage is more common in crypto due to thin liquidity, extreme volatility, wide spreads and leverage effects. Understanding the market structure is key to managing this risk.

Traders who adjust their timing, order types, and risk management will be more consistent. In the cryptocurrency market, adaptability is often more important than speed.

Also Read: 5 AI Perspectives: Will XRP Fall Below $1 in February 2026?

Follow us on Google News to stay up to date with the latest crypto and blockchain technology. Check Bitcoin price, USDT to IDR and Nvidia stock price tokenized via Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading the Pintu crypto app via Play Store or App Store now. Also, experience web trading with advanced trading tools such as pro charting, various order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Elliot Veynor / Crypto Daily. Top 5 Reasons Why Slippage Happens More Often in Crypto Than Major Forex Pairs. Accessed February 9, 2026.