When making a buy, sell, or swap transaction of a cryptocurrency that is in a moment of high volatility or lack of liquidity, the operation could be executed with a quote price that is very different from the one indicated in the summary of the transaction. This could also happen when the operation you want to perform is for a high amount.
When this occurs and a high impact on the price due to slippage or market displacement is detected, the automatic system will not allow you to make the transaction in the Wallet, indicating the option to enter a smaller amount for the purchase or to perform the transaction through Bit2Me PRO. The message that is shown is the following:
Price protection This operation cannot be executed due to a high impact on the price that could lead to considerable losses for you. Please enter a smaller amount. |
This usually occurs when 3 different scenarios arise:
- When there is a sudden high volatility in a cryptocurrency/token. That is, there is a very high volume of operations at that moment.
- When there is low liquidity. This situation occurs when few or no trades are registered between different operations, causing very high spikes in a matter of seconds due to the low liquidity at that moment.
- When the operation to be carried out is too high.
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