What is slippage in crypto?

Slippage is the difference between the execution you expected and the execution you received. In a token swap, an interface may quote an output amount before the transaction is confirmed. Changes before execution can make the final output different.

Price impact is related but distinct: it is the effect your own order has on the price. A swap can already have substantial price impact in its quote and then experience additional slippage before it executes. A tolerance setting does not erase the impact built into the quote.

Reference: Uniswap Labs — Price impact vs price slippage ↗

Read an output example in token units

Suppose an exact-input swap previews 200 tokens of output, and the transaction delivers 198. In this simplified comparison, you received 1% fewer tokens than the preview. If it delivered 202, the movement would be favorable instead. Keep the input size and quote basis fixed when making the comparison.

An interface might display a minimum received amount of 198 for a quoted output of 200. That means 198 is the protected floor for that quote’s execution rules, not the expected output and not an extra fee. Different interfaces can calculate tolerances differently, so read the displayed minimum directly.

If execution would fall below the enforced minimum, the swap can revert. A reverted on-chain transaction may still incur network costs. Distinguish that outcome from a transaction that never reached the network.

What a tolerance setting changes

A lower tolerance permits less adverse movement before execution, which can make a swap fail when conditions change. A higher tolerance allows a worse execution result to pass. Neither choice improves the underlying pool’s depth.

There is no universally correct percentage for every asset, route, network, and market condition. Before changing a setting, distinguish an old quote from a large price impact, a token transfer rule, or a lack of a viable route. Repeatedly increasing tolerance can hide the reason the quote was unattractive.

Reference: Uniswap Labs — Slippage settings ↗

A practical way to inspect a quote

Compare the same input size across available routes, and read the expected output after the quoted charges. Then inspect the minimum received, price impact, and network cost. A route with a better headline rate can still deliver less after costs.

For a research example, compare quotes for a small amount and a larger amount without submitting either trade. If the output per input unit deteriorates sharply, the difference may reveal limited available liquidity. Keep the observation tied to that moment: the pool can change before any later transaction.

CoinBee’s market prices describe broader asset activity. They are useful context, but they are not executable quotes for a wallet swap. The venue’s quote and transaction parameters determine what a specific trade can receive.

Reference: Uniswap — Swap execution and slippage ↗