What is slippage in cryptocurrency 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 during periods of high volatility, where market prices can change rapidly between the time an order is placed and when it is filled. Slippage can be either positive or negative, depending on whether the final price is better or worse than expected. Traders can minimize slippage by setting limit orders, which specify the maximum price they are willing to pay or the minimum price they are willing to accept. However, in fast-moving markets, slippage can still occur even with limit orders.