What Is Slippage in Crypto Trading? How It Affects Beginners (and How to Avoid It)

If you’ve ever bought crypto and ended up paying more than you expected, you’ve experienced slippage—even if you didn’t realize it. Slippage is one of the most overlooked costs in crypto trading, especially for beginners using market orders. It can quietly eat into your balance with every transaction, and the effects are worse in volatile or low-liquidity markets.

Understanding slippage is crucial for new users. It’s not just about price—it’s about control. When you place an order, you expect a certain result. But slippage means you might not get the price you see on your screen. And if you’re trading often or in fast-moving markets, these small losses can add up quickly.

This guide breaks down what slippage is, why it happens, how it shows up on platforms like Coinbase and Coinbase Advanced, and—most importantly—how to avoid it.

If you’re brand new to trading, make sure to explore our other beginner-friendly explainers in the Crypto Guides section. Every guide is designed to help you trade smarter with zero hype, no jargon, and real-world examples.

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What Is Slippage?

Slippage is the difference between the price you expect to pay for a crypto trade and the price you actually pay once the order is executed. It occurs most commonly with market orders, where trades are filled instantly at the best available price—but that “best price” can change in seconds.

Let’s look at an example:

• You place a market order to buy $100 worth of Bitcoin.
• On your screen, Bitcoin is showing as $30,000.
• But by the time your order is filled, the price has moved to $30,100.
• You end up with slightly less Bitcoin than expected.

That $100 price jump is slippage—and while it may sound small, it means you didn’t get the value you thought you were paying for.

Why Does Slippage Happen?

Slippage usually happens when markets move quickly, or when there isn’t enough liquidity (available volume) at your target price. In these situations, your order “eats through” the order book, grabbing the next best available price—even if it’s worse.

Other causes include:

• Large order sizes: Buying or selling a big amount can move the market.
• Low-volume coins: Altcoins with limited buyers/sellers are more prone to big slippage.
• Volatility: Price spikes and crashes increase slippage risk.

Even on reputable platforms like Coinbase, slippage can occur during periods of high demand (like a news spike) or when trading niche tokens.

In the next section, we’ll explain how slippage works under the hood on Coinbase vs Coinbase Advanced, and how your choice of platform—and order type—can make a big difference.

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How Slippage Works on Coinbase vs Coinbase Advanced

Both Coinbase and Coinbase Advanced support spot trading, but they handle order execution differently—and that directly affects how much slippage you experience.

Coinbase (Standard)

On the standard Coinbase app, users don’t get to choose their order type. Every trade is a market order executed instantly. This means you’re accepting the current market price—whatever it is—without seeing the full order book behind the scenes.

Because of this setup:

• You’re more likely to experience slippage, especially in volatile markets.
• You can’t set a maximum price you’re willing to pay.
• You won’t see price tiers or how deep the market is.

While this makes trading simple, it also limits your control. You might see Bitcoin at $30,000 when you hit “buy,” but by the time the trade executes, you could pay $30,100 or more. For beginners, this often results in confusion and frustration.

Coinbase Advanced

On Coinbase Advanced, slippage is still possible with market orders—but you also have access to limit orders, which let you set a maximum buy price (or minimum sell price). This completely eliminates slippage risk, because the trade will only go through if the market hits your target.

Additionally, you can:

• View the live order book and trade depth.
• See how large orders impact price movement.
• Choose between market and limit order types for full control.

This added visibility makes it easier to manage slippage, especially if you’re trading larger amounts or trying to buy/sell during fast-moving market conditions.

In the next section, we’ll walk through how to reduce slippage with simple, beginner-friendly tactics you can apply right away.

How to Reduce Slippage in Crypto Trades

Slippage can be frustrating, especially when you’re just starting out. But the good news is—it’s manageable. With a few smart tactics and some basic platform knowledge, you can significantly reduce how often slippage affects your trades.

1. Use Limit Orders Instead of Market Orders

This is the single most effective way to reduce slippage. A limit order lets you define the maximum price you’re willing to pay (or the minimum price you’re willing to sell at). If the market never hits that price, your trade won’t go through—but that’s a good thing. It means you’re not getting a bad deal.

Platforms like Coinbase Advanced make it easy to place limit orders and avoid the “instant execution” trap of market orders. Once you’re comfortable, using limit orders should become a default part of your trading process.

2. Avoid Trading During High Volatility

Crypto markets move fast—especially during major news events, exchange outages, or global financial uncertainty. These are the moments when slippage is most severe. If possible, wait until the market stabilizes before executing larger trades.

3. Trade High-Liquidity Assets

Coins like Bitcoin (BTC) and Ethereum (ETH) generally have more liquidity, meaning your order is less likely to cause price movement or “eat through” the order book. Avoid small, illiquid altcoins if you’re trying to minimize slippage.

4. Break Up Large Trades

If you’re buying a large amount of crypto, consider splitting it into smaller orders. This prevents one big order from pushing the price up and triggering slippage. Even advanced traders use this method to maintain price stability.

5. Use Coinbase Advanced for Transparency

On Coinbase, you don’t see the order book or the spread—you’re flying blind. On Coinbase Advanced, you can monitor the live price ladder, view liquidity levels, and place smart limit orders. It’s a powerful upgrade that puts you in control.

You can sign up or switch anytime using our Coinbase Advanced referral link.

Reducing slippage starts with understanding it—and by using the right tools, you can protect your balance and trade with confidence.

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Slippage vs Fees – What’s Worse for Beginners?

As a beginner, you might already be aware that trading fees can eat into your returns. But slippage is a silent cost—it doesn’t show up on your transaction receipt, yet it can sometimes cost more than the platform’s official fees.

Let’s compare:

Fees:

• Transparent and known in advance (e.g. Coinbase’s flat fees or Coinbase Advanced’s maker/taker structure).
• Can be reduced through order type (maker fees are lower than taker fees).
• You can plan for them.

Slippage:

• Hidden and unpredictable.
• Can spike during volatility or low liquidity.
• Only obvious after the trade is executed.
• Can be more costly than the fee itself, especially with large trades.

Here’s an example:

• You place a $1,000 market order on a volatile token.
• Coinbase charges a $9.99 flat fee, which you expect.
• But due to slippage, you also pay $25 more than the displayed price.
• Result: You just lost $35 instead of $10—and didn’t even realize it.

That’s why many beginners focus too much on “fee comparisons” and not enough on execution strategy. If you only use market orders, especially on the standard Coinbase app, you’re vulnerable to both high fees and hidden slippage.

The solution? Learn to use limit orders on Coinbase Advanced. You’ll not only reduce your fees—you’ll also protect yourself from slippage, making your trades more efficient and predictable.

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When Slippage Can Hurt You the Most

Not all slippage is equal. In some situations, it’s a minor inconvenience. In others, it can cause major losses—especially if you’re unaware it’s happening. For beginners, these are the conditions where slippage can really hurt:

1. Buying During Market Surges

When prices are moving fast, such as during a sudden bull run or news-driven spike, market orders get filled at rapidly climbing prices. You might think you’re buying Bitcoin at $30,000—only to realize you paid $30,400.

This kind of slippage is common during FOMO-driven trades, where users rush into a hot asset and the order book gets wiped out.

2. Selling During Crashes

Just like during spikes, sharp drops also trigger slippage. If you try to sell during a panic, market orders may fill at much lower prices than you anticipated—especially if liquidity dries up.

3. Trading Illiquid Coins

Small altcoins or new tokens often have thin order books. This means your order may move the market more than expected, resulting in slippage of 5–10% or more, even on small trades.

4. Large Trade Sizes

Buying $100 worth of crypto usually results in minor slippage. But if you’re trading thousands of dollars in one order—especially on Coinbase—it’s easy to see price slippage in the hundreds. These are real, unlisted costs.

5. Using Mobile Apps Without Price Confirmation

On some mobile interfaces (including Coinbase), you might not see a clear execution price before confirming the trade. That’s a recipe for unknowingly accepting bad fills during rapid price swings.

The fix is to use limit orders on platforms like Coinbase Advanced, where you can set firm price boundaries and avoid unexpected losses.

Understanding when slippage is most dangerous—and how to spot the signs—will help you protect your capital and avoid emotionally-driven trades.

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Frequently Asked Questions (FAQ)

What is slippage in simple terms?
Slippage is the difference between the price you saw when placing a trade and the actual price you got. It’s common with market orders during volatile or low-liquidity conditions.

How much slippage is normal?
On stable assets with good liquidity, slippage might be less than 0.1%. On volatile or low-volume coins, it can exceed 5% or more—especially with market orders.

Does Coinbase warn you about slippage?
No. On standard Coinbase, slippage isn’t shown directly. You’ll only notice it after the trade, when your received amount is lower than expected.

How can I eliminate slippage entirely?
Use a limit order on Coinbase Advanced. Your trade will only go through at the exact price you set, eliminating slippage risk completely.

Is slippage worse than fees?
Sometimes, yes. While fees are fixed and visible, slippage can cost more and go unnoticed—especially during fast market moves.

Should beginners care about slippage?
Absolutely. If you’re making frequent or large trades, reducing slippage can save you more than lowering your platform fees.

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Final Thoughts: Slippage Is Hidden, But Manageable

Slippage may not show up as a line item on your receipt, but it’s one of the most common hidden costs in crypto—especially for beginners who rely on market orders. If you’re not aware of it, you’ll quietly lose value with every trade.

But once you understand how slippage works, you can reduce or even eliminate it completely. By avoiding volatile moments, choosing high-liquidity coins, and switching from market orders to limit orders, you take back control over your trades.

The fastest way to reduce slippage—and fees—is to use Coinbase Advanced, which gives you access to limit orders, live order book visibility, and a much more transparent trading experience.
You can make the switch easily using our Coinbase Advanced referral link.

To continue building your beginner-friendly crypto knowledge, don’t forget to explore our full Crypto Guides section. Every article is designed to help you trade with clarity, confidence, and full control over your crypto journey.