Slippage in crypto is the difference between the price you expected for a trade and the price you actually received. It is common on decentralized exchanges, thin markets, and volatile tokens.
Why slippage happens
Prices can move while a transaction waits to confirm. A trade can also push through a small liquidity pool and change the price as it executes.
Why slippage settings matter
A very low slippage tolerance may fail the trade. A very high tolerance may allow a much worse trade than expected, especially around volatile tokens or aggressive market activity.
Slippage is closely tied to liquidity, gas fees, and the design of the exchange being used.