Ever Wondered Why Your DEX Swap Sometimes Costs More? Here’s the Truth About Price Impact!
I remember the first time I swapped tokens on a DEX and got a little shock at the final amount received. Turns out, it wasn’t just slippage it was price impact in action.
What’s Price Impact?
When you swap on a DEX, you’re trading with a liquidity pool. If your trade is big compared to the pool size, it can move the market price, making each next token more expensive (or cheaper).
The smaller the pool, the bigger the price impact!
I always check liquidity stats and, if I’m moving a big amount, split my trades. Trading on high-liquidity pairs keeps things smooth and cost-effective.
Ever been surprised by a swap result? What’s your trick for minimizing price impact? Let’s chat in the comments!