Have you ever experienced “Price Impact Too High” when you wanted to swap tokens on PancakeSwap, UniSwap, or on other swap platforms?
It must be very frustrating if you experience this, especially if you are currently playing coin micin or shitcoin which often experience this.
But don’t worry, in this guide MediaAuthority will explain what price impact is too high and also how to overcome it.
What is Price Impact Too High
Price impact too high or a large price impact is the effect of trading on the market price of the asset pair. This is directly related to the amount of liquidity/volume in the pool.
The price impact can be very high for markets/pairs where there is no liquidity, and can cause traders to lose a large part of their funds.
For example: when you want to swap MNEB to BNB, but the MNEB liquidity is too small it will cause Price Impact Too High.
There is a possibility that the developer of the token has not added liquidity or it could be that the developer has run away from his liquidity.
So, to overcome the price impact too high, then how?
How to Overcome Price Impact Too High
If you swap using the pancake swap platform. The first thing that needs to be known is to look at the liquidity pool of the project first, whether it is in V1 or has been migrated to V2 (if there is no liquidity in both, there may be a Rugpull).
If there is liquidity in V1 and you use V2 to swap, it will never work.
- The first step is to switch to V1
- Check it first, then tap Continue V1 Anyway
- After that select the token you want to swap
If the above method still doesn’t work, then the second way is to reduce the number of tokens you want to swap to offset the liquidity of the token.
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So a brief explanation about Price Impact Too High when you want to do a swap, hopefully the above guide can solve the problems you are experiencing.