Economy
Understanding Slippage in Crypto Exchanges and How Swapzone Helps Reduce It
Introduction
Slippage is a common concern for crypto traders who use the best crypto exchange, especially during periods of high market volatility. It can lead to unexpected price changes between the time a trade is initiated and when it is executed. Understanding slippage and how to minimize it is crucial for optimizing trading outcomes. In this article, we’ll explore what slippage is, its causes, and how Swapzone’s advanced aggregation system helps reduce it for a smoother trading experience and crypto swap.
What Is Slippage in Crypto Trading?
Slippage refers to the difference between the expected price of a cryptocurrency trade and the actual price at which the trade is executed. It typically occurs when market conditions change rapidly, leading to discrepancies in pricing. Slippage can be either positive or negative:
- Positive Slippage: The executed price is better than the expected price, resulting in more favorable trade outcomes.
- Negative Slippage: The executed price is worse than the expected price, leading to potential financial loss.
Causes of Slippage in Crypto Exchanges
Several factors contribute to slippage in cryptocurrency markets:
1. Market Volatility
Crypto markets are known for their rapid price fluctuations. High volatility increases the likelihood that the price will change between the time a trade is placed and when it is executed.
2. Liquidity Levels
Liquidity refers to how easily an asset can be bought or sold without affecting its price. Lower liquidity, especially for less common tokens, can cause larger slippage due to fewer matching orders in the order book.
3. Large Trade Sizes
Executing large orders may consume multiple price levels in the order book, resulting in slippage. This is particularly common on smaller exchanges with limited order book depth.
4. Execution Speed
Delays in trade execution, whether due to network congestion or slow processing times, can lead to price differences and increased slippage.
How Swapzone Helps Reduce Slippage
Swapzone’s cryptocurrency aggregation model is designed to minimize slippage by leveraging advanced technology and broad market access. Here’s how Swapzone helps users reduce slippage:
1. Real-Time Rate Comparison
Swapzone continuously collects real-time data from over 20 exchange partners, allowing users to access the most up-to-date rates. This minimizes the risk of price discrepancies during trade execution.
2. Access to Multiple Liquidity Pools
By aggregating offers from both centralized and decentralized exchanges, Swapzone taps into a vast network of liquidity. This reduces the chances of encountering slippage, even for large trades.
3. Smart Order Routing
Swapzone’s algorithm automatically identifies the best route for each trade, optimizing execution across multiple providers. This ensures users receive the most favorable rates with minimal price impact.
4. Transparent Pricing
Swapzone displays all fees and costs upfront, allowing users to make informed decisions. Clear and transparent pricing reduces uncertainty and the risk of hidden slippage.
5. Customizable Options
Users can choose between the best rate or fastest execution options. This flexibility allows traders to prioritize speed or price efficiency based on their needs, further minimizing slippage risks.
Tips to Minimize Slippage When Using Swapzone
In addition to Swapzone’s advanced technology, users can take additional steps to reduce slippage:
- Monitor Market Conditions: Trade during periods of lower volatility to avoid sudden price movements.
- Split Large Trades: Divide large transactions into smaller orders to prevent significant price impact.
- Use the Best Rate Option: Select the best rate offer on Swapzone to secure the most competitive pricing.
Conclusion
Slippage is a critical factor to consider when trading cryptocurrencies, but with the right tools, it can be effectively minimized. Swapzone’s real-time data collection, smart order routing, and access to multiple liquidity sources provide a reliable solution for reducing slippage. By leveraging Swapzone’s capabilities and applying best practices, users can execute more accurate and cost-effective crypto swaps with confidence.
By Adedapo Adesanya
A sub-group made up of eight members of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) have brought forward a policy meeting by two days to May 3.
According to Argus, the meeting, initially scheduled to hold on Monday, May 5, will now hold on Saturday (tomorrow).
The eight countries — Saudi Arabia, Russia, the UAE, Kuwait, Iraq, Algeria, Oman and Kazakhstan — are meeting to decide on their crude production targets for June.
Sources say it was essentially for the convenience of a few oil ministers who would have struggled to make it on Monday.
In early April, the eight members decided to speed up plans to unwind a collective 2.2 million barrels per day of production cuts.
Saudi Arabia reportedly pushed for a larger-than-planned output hike from the eight members in May, a decision that helped send oil prices below $60 a barrel to a 4-year low.
The group is now expected to raise output by 411,000 barrels per day, three times the level agreed in December 2024.
Saudi Arabia, regarded as OPEC+ defacto leader and its biggest output cutting country, has been angered by Kazakhstan and Iraq producing above their OPEC+ targets.
The total 22-member group, which includes Nigeria, is currently cutting output by over 5 million barrels per day.
The group plans to hold a full ministerial meeting on May 28.
By Adedapo Adesanya
Nigerian billionaire entrepreneur, Mr Aliko Dangote, says he expects revenues from Dangote Group to grow more than $30 billion next year from about $25 billion projected in 2025 amid current trade uncertainties.
He made this disclosure on Thursday at an investment conference in Lagos, acknowledging the positive impact President Donald Trump’s tariffs would have on his urea exports to the US because major competitor Algeria had been slapped with a higher levy.
President Trump imposed a 14 per cent tariff on imports from Nigeria, Africa’s largest oil exporter, as part of widespread trade measures introduced last month, later paused for 90 days.
Comparatively, Algeria was subjected to a 30 per cent reciprocal tariff on its exports to the United States under President Trump’s Liberation Day tariff policy announced on April 2, 2025.
“But when I checked who we are really competing with, we are competing with Algeria. So, luckily for us Algeria were slapped with 30 per cent,” said Mr Dangote, adding that, “It actually makes us a bit comfortable.”
The tariff measure was part of a broader strategy to address perceived unfair trade practices by imposing higher tariffs on countries without formal trade agreements with the US.
President Trump’s tariffs spared oil and gas exports, allowing the Dangote Petroleum Refinery to continue selling its products to the US without disruption. This exemption provides a significant cushion for Mr Dangote’s broader business strategy, especially as the refinery ramps up output.
Mr Dangote also said that Dangote Fertiliser, which began commercial operations in 2022, shipped 37 per cent of its 3 million metric tonnes of urea production to the US.
Beyond the US, Dangote also exports urea to other key markets such as Brazil, which has historically relied on Russian fertilizer supplies, as well as India and Mexico.
Mr Dangote added that he expects his cement company to become Africa’s largest exporter next year, overtaking Egypt in the process.
“We are at about 53 million tons,” Mr Dangote said in reference to the production capacity of his plants. “By next year, we will be at 62 million tons of cement. We will be number one.”
By Adedapo Adesanya
The National Pension Commission (PenCom) has revealed that 368,911 workers have changed their Pension Fund Administrators (PFAs) and transferred their Retirement Savings Accounts worth N1.77 trillion to new PFAs under the Contributory Pension Scheme (CPS) as of the end of March 2025.
The pension industry regulator disclosed this in its Quarterly Summary of Retirement Savings Accounts (RSAs) transferred by Pension Fund Administrators.
The transfer window allows a contributor under the CPS to move all his RSAs from his current PFA to another of his choice once in a year.
According to the figures, 27,701 workers transferred N191.1 billion in first quarter of 2025, 28,439 workers transferred N172.29 billion in the fourth quarter of 2024 while 23,226 workers transferred N141.87 billion in the third quarter of 2024; 20,993 workers transferred N128.87 billion in the second quarter.
Figures showed that 23,484 and 22,927 workers transferred N120.866 billion and N105.763 billion in the first quarter of 2024 and fourth quarter of 2023 respectively.
In the third quarter of 2023, 19,014 RSA holders changed their PFAs and moved N85.99 billion; 34,359 workers moved N158.6 billion in the second quarter of 2023; 24,963 moved N111.67 billion in the first quarter of 2023.
The figures disclosed that 2,799 contributors moved N18.9 billion in the fourth quarter of 2020; 12,681 contributors moved N47.78 billion in the first quarter of 2021; 10,166 moved N35.89 billion in the second quarter of 2021; 12,872 contributors moved N45.56 billion in the third quarter of 2021; while 12,874 contributors moved N42.49 billion in the fourth quarter of 2021.
It added that 12,336 contributors moved N36.36 billion in the first quarter of 2022; 14,821 moved N50.22 billion in the second quarter of 2022; 30,973 moved N143.1 billion in the third quarter of 2022; while 34,283 moved N131.76 billion in the fourth quarter of 2022.
In the fourth quarter of 2020, PenCom introduced the transfer window regulation which allowed workers to change their PFAs.
Section 13 of the Pension Reform Act 2014 specifies that a Retirement Savings Account holder may transfer his RSA from one PFA to another.
It added that such transfer should not be more than once a year.
The pension industry regulator stated that PFAs must only process requests for RSA holders registered on the Enhanced Contributor Registration System (ECRS) and those whose recaptured information had been successfully uploaded onto the system.
“PFAs shall only process RSA transfer requests for eligible RSA holders who have not transferred their RSAs within the last 365 days using the RTS, irrespective of whether it is a leap year or not,” it stated.
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