Slippage is the difference between the expected price of an order and the price when the order actually executes. The slippage percentage shows how much the price for a specific asset has moved. Due to the volatility of cryptocurrency, the price of an asset can fluctuate often depending on trade volume and activity.
What causes slippage?
Slippage is caused by the amount of liquidity, which is how quickly you can buy and sell an asset without impacting the price. So if there is low liquidity or low trading activity in the market for a specific asset, then the slippage percentage will be higher.
How does Coinbase minimize slippage?
Coinbase will display a slippage and average price estimate at the bottom of every market order. This may help prevent you from accidentally placing an order at an undesirable price.