Price impact too high Pancakeswap fix: How to solve “Price Impact Too High” problem in PancakeSwap? In this article on shetcoiner site, we want to talk about this issue; so stay with us until the end of this article. Also, you can refer to other related articles such as How to Fix “No provider was found” on PancakeSwap? or What is Auto Cake Bounty in Pancakeswap? and etc.
What is Price Impact?
Before we talk about Price impact too high Pancakeswap fix: Price Impact is actually the difference between the main current price and the price you will pay when you swap in a decentralized exchange. This difference occurs due to the disruption of the liquidity ratio in the pools and the sudden change of prices in a token.
In financial markets, market impact is the effect that a market participant has when it buys or sells an asset. It is the extent to which the buying or selling moves the price against the buyer or seller, i.e., upward when buying and downward when selling. It is closely related to market liquidity;
Quoted from Wikipedia.
For a better understanding, look at this example: If someone wants to buy a $ 1 token, a decentralized exchange will calculate the price of $ 1, but if he wants to buy 20 percent of the token’s liquidity supply, the exchange will be done through the Price Impact mechanism. This makes the payment cost much higher for the investor.
In the continuation of the “Price impact too high Pancakeswap fix” article , we should say that: The same mechanism applies to the sale of tokens; The selling price of 1 token is different from 1000 tokens, and this provides liquidity to the exchange offices, considering the supply of tokens and the supply of pools.
What is “Price Impact Too High” error?
Price Impact Too High is an error that some users of decentralized exchange, especially decentralized exchange PancakeSwap, encounter it during some transactions, which is an obstacle to their transactions. There are various solutions to fix the Price Impact Too High error in decentralized exchanges and we will explain the best ways to solve this problem for you.
Price impact too high Pancakeswap fix
If you want to fix the “Price impact too high” error, we have to say that there are several ways to do this, which we will examine in the rest of this article:
- Change the exchange you are using.
One of the most successful ways for Price impact too high Pancakeswap fix, is to use other versions of exchange offices. You may ask how many copies a decentralized exchange has. For example, the decentralized exchange like PancakeSwap is offered in the older version of V1 and the newer version of V2. To change the versions in the Swap section, a little lower than the main section, these options can be seen and used.
- Reduce the volume of purchases and divide them into more transactions.
Crypto currencies sometimes can be bought for very small amounts of dollars because of their very low price. To solve this problem, we can reduce the number of assets we intend to trade and buy or sell the desired amount in a few transactions.
- Increase Slippage Tolerance
If you want to do Price impact too high Pancakeswap fix and trade crypto currencies in decentralized exchanges such as PancakeSwap, changing the Slippage Tolerance to complete the transaction can be a good solution when you encounter a Price Impact Too High error.
Sometimes Slippage Tolerance helps to complete the transaction due to excessive price fluctuations and the lengthy process of registering a buy or sell transaction in decentralized exchanges. To do this, you can click on the gear icon in PancakeSwap DEX and then try to change the price Tolerance and confirm it.
How to prevent Price Impact too high error?
In the continuation of the Price impact too high Pancakeswap fix article we should add: Keep in mind that price impacts usually occur while buying or selling a new and unstable token. If you want to buy these tokens, you should first check the following features:
- Trading volume: Do not worry if the volume you are going to invest is less than the volume that other people are transferring. Otherwise you may get Price Impact.
- Utilizing aggregators: DEX Aggregators automatically check the price of the token in the decentralized exchange, then select the exchange that offers the best price for the transaction.
- Pool depth: Newly created tokens usually do not have a large trading volume, so it is difficult to find the depth of their pool, as these tokens are not listed in reputable exchanges. Therefore, it is recommended to use a valid token whose pools have a lot of liquidity.
Suggested article: Best PancakeSwap Alternative
Conclusion
In this article on shetcoiner site, we have explained Price impact too high Pancakeswap fix and talked about what is Price Impact and its error? and we told you how to prevent Price Impact too high error? in different ways. If you want, you can refer to other related articles, like: How to Fix “No provider was found” on PancakeSwap? or What is Auto Cake Bounty in Pancakeswap? and etc. We hope you find this article useful!
If you want to know more about crypto currencies read the following articles on shetcoiner site:
How to buy Pancakeswap on Binance?
Pancakeswap not connecting to TrustWallet
Pancakeswap price prediction (The best currency!!)
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