What is Slippage and How to Avoid Order Delays in Crypto
The crypto market is becoming more and more popular, leading to new exchanges, which are mushrooming around the globe. As the number of clients is growing, multiple mandatory requirements should be in place to satisfy them. Exchange services often lead to transaction and execution delays, which may cause costly slippage. Preventing this becomes one of the most competitive challenges for the crypto industry nowadays.
What is Slippage?
The crypto market is highly volatile, and the asset prices change in the blink of an eye. In a fraction of a second, as your order takes to reach the exchange, everything can change, and the price you will get may be lower than the one you expected. This price difference is called slippage.
Slippage can be negative, positive, or there can be no slippage at all. It occurs when the bid/ask spread changes between the time a market order is requested and the time an exchange or other market maker executes the order.
How to Avoid the Transaction Delay and Reduce the Harm of the Slippage?
Transactions must occur with substantial speed to mitigate the risk of significant price changes. Depending on the particular exchange, transaction times can vary anywhere from 30 minutes to several days.
The best way to avoid the delays is to choose the exchange, which allows both fiat and crypto funding options. The exchange must also be regulated and comply with international legal bodies. It is important to look into the whitepaper to see which technology platform is used by the specific exchange, as this will help you identify if this platform suits your trading strategy. In addition, do not forget about the liquidity, which will guarantee the execution of your order. If the liquidity is poor, it can take days or even weeks for your order to be executed.
About IronX
One of the main goals of the IronX Exchange is to provide a highly prestigious regulatory framework that will ensure proper client service, exemplary trade execution, and unparalleled client funds security.
The exchange`s platform is based on AlphaPoint’s technology, which delivers a secure and stable trading environment that safeguards all digital exchange data. The IronX Exchange has successfully passed the security audit by Hosho and Hacken, meaning that it now holds the full regulatory license by the Estonian FIU.
Visit www.ironx.com, complete your KYC and receive 10 free IRX.
