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What is Slippage Tolerance?
Slippage Tolerance is the amount of commission that you are willing to pay when buying and selling Cryptos on any Crypto Swap Platform (i.e. PancakeSwap, Uniswap) Finding the optimal Slippage is based on the Tokenomics of each token, which normally ranges between 0.1-0.5% on the low end, and 10-13% on the high end.
How to use a Crypto Swap Platform?
When using any Crypto Swap Platform, they all function in exactly the same way, and nearly all of them have an identical visual layout, so once you have learnt how to master one, you will then be able to use any Crypto exchange with confidence, knowing what you are doing, without the fear of making any mistakes.
Step 1: Connect Wallet
First you will need to connect your Cryptocurrency Wallet to the exchange.
You will find the ‘Connect Wallet’ button at the top right-hand corner of the screen.
Step 2: Enter Token Amounts
This is the main screen that you will see on every exchange.
First select the token that you want to use to trade with.
Secondly, select the token that you want to buy.
Next, you need to set the Slippage Tolerance.
How to set the correct Slippage Tolerance?
This is the settings screen, and it’s the same on every exchange.
This is without a doubt the most IMPORTANT part of the transaction.
Knowing what to do here is the difference between a FAILED or SUCCESSFUL transaction.
There are several settings available on this screen, but there are only 2 sections that you need to focus on.
Default Transaction Speed (GWEI)
This will adjust the GAS price based on the speed of the transaction.
If you are buying a standard token with a stable trading price, then a normal transaction speed is fine.
However, if you are purchasing a token that has a HIGHLY VOLATILE fluctuating trading price, then selecting a speedier option would be more sensible to avoid any prices changes if the transaction does not go through the first time, as the difference between the price of GAS speeds is not usually that much.
The amount of Slippage that you set will usually end up being one of two scenarios.