Are you struggling to fix insufficient liquidity for this trade error? Don’t worry, you have reached the right place. In this article, let us see how to fix insufficient liquidity for this trade error.
Crypto traders get frustrated seeing the insufficient liquidity error when they try to execute a trade by swapping tokens on decentralized exchanges. The “Insufficient Liquidity for this Trade” error is frequently caused by a lack of liquidity that prevents you from making a trade. That indicates that there aren’t enough tokens for trade in the cryptocurrency’s liquidity pool.
To fix insufficient liquidity for this trade error, you may change the version of the exchange, increase the slippage tolerance, limit your purchases and segment your transactions, check good internet connectivity or switch to a different exchange.
How To Fix Insufficient Liquidity For This Trade Error?
To fix insufficient liquidity for this trade error, you may change the version of the exchange, increase the slippage tolerance, limit your purchases and segment your transactions, check good internet connectivity or switch to a different exchange.
The “insufficient liquidity for this trade” error occurs mostly in decentralized crypto exchanges like PancakeSwap, Uniswap, Trust wallet, Meta mask e.t.c while performing transactions. As users may buy a coin during a price drop and sell a coin when the price increases, the occurrence of insufficient liquidity error, makes it difficult for users to make timely transactions. Let us first understand what insufficient liquidity means and look at the ways to fix it.
Insufficient Liquidity Meaning
In order to complete your transaction, there must be sufficient “depth,” and when there is no sufficient depth, it means there is insufficient liquidity. As an example, when you want to buy $2000 of dogecoin tokens but there is only $1000 worth of tokens available on the exchange, that is referred to as Insufficient liquidity. That indicates that there aren’t enough tokens available for trade in the specific cryptocurrency’s liquidity pool.
A certain number of pairs made up of two different cryptocurrencies will be present in the liquidity pool. For instance, a specific quantity of both Tether and Bitcoin must be present in the liquidity pool for the USDT/BTC pair and if there is no sufficient quantity, it leads to insufficient liquidity.
Available Fixes For Insufficient Liquidity Error
In this article, we will take you through PancakeSwap and UniSwap and show how to fix liquidity for this trade error.
Change The Version Of The Exchange
Changing the version of the exchange you are using is the first step in resolving the “Insufficient Liquidity for This Trade” error. This problem will arise if you are utilizing a version of an exchange that does not provide the trading pair you are seeking for.
Changing Version In PancakeSwap
Go to PancakeSwap > Link it to the wallet > Toggle from V2 to V1
Step 1: Go to PancakeSwap’s official website. You may just find the PanckeSwap app in the DApps section of Trust Wallet by going there.
Step 2: After that, you will get a popup requesting you to link PancakeSwap to your wallet.
Step 3: You can start using the website after simply clicking the Connect tab.
Step 4: PancakeSwap will by default operate on the V2 version. Therefore, you must move to the outdated V1 version if you want to solve the issue.
Step 5: Toggle choices for V1 and V2 may be found at the end of the page, simply scroll down to locate them.
Step 6: Move the toggle to V1. When you do that, a pop-up message letting you know that the V1 is out of date will appear.
Step 7: Then select “Continue to V1 Anyway.” after checking on the check box.
Step 8: After that, you must reconnect to your wallet the same way you did before by choosing the wallet name that you are currently using.
Related: How to Use Pancake Bot Discord | Commands
Changing Version In UniSwap
Enter “? use = V2” along with UniSwap URL to change to Version V2
Step 1: You simply need to enter “? use=V2” to the UniSwap URL.
Step 2: You’ll reach the V2 version if you do this. However, you may just type in “? use=V1” to go to the V1 version.
Step 3: The general UniSwap exchange URL is https://app.uniswap.org/#/swap, which will direct you to the V3 version since it is pre-configured.
Step 4: You can change the version by typing “?use=V1” or “?use=V2” depending on the version you want to utilize.
Changing the version most likely fix insufficient liquidity for this trade error.
Increase Slippage Tolerance
Slippage refers to the amount that you lose in order to carry out your transaction. As an example, if you want to buy $1,000 of Ethereum coins and set it to 10% slippage, you will receive only $900 worth of Ethereum. It indicates that the order will be executed with a 10% loss allowance. Before the tokens are made available on centralized exchanges, many cryptocurrency investors desire to purchase some tokens in decentralized exchanges. If you have your slippage tolerance for this type of transaction set to a lower number, you can see the error message “Insufficient Liquidity for this Trade.”
Increase Slippage Tolerance In PancakeSwap:
Go to PancakeSwap > Connect with your wallet >Swaps and Liquidity > Slippage tolerance > Add 12%
Step 1: Go to the PancakeSwap website or DApp on Trust Wallet and establish a connection with your wallet as explained above.
Step 2: Before you start this process, make sure you are using the default V2 version. Proceed to settings by clicking on the top of the screen.
Step 3: Locate the “Slippage Tolerance” column under “Swaps & Liquidity.” To improve your slippage tolerance, only add 12%.
Step 4: You will see a notice that reads “Your transaction may be front run” after entering 12%.
Step 5: Simply dismiss that notification by tapping the X button at the top. This will likely assist in resolving your insufficient liquidy error.
You can also set the Slippage to 20% depending on the coin.
Increase Slippage Tolerance In UniSwap
Go to PancakeSwap > Connect with your wallet >Swaps and Liquidity > Slippage tolerance > Add 10%
Step 1: Go to the UniSwap website. Before you start this process, make sure you are using the default V3 version.
Step 2: Connect UniSwap to your preferred wallet. Proceed to settings by clicking on the top of the screen.
Step 3: Locate the “Slippage Tolerance” item under “Transaction Settings.” Just increase the Slippage Tolerance by 10%.
Step 4: When you enter 10%, you will see a notification that reads “Your transaction may be front run” will appear.
Step 5: Simply disregard the warning and click anywhere else on your screen to close the box.
This will most likely fix insufficient liquidity for this trade error.
Limit Your Purchases And Segment Your Transactions
Some cryptocurrencies can occasionally be purchased in very small dollar quantities due to their extremely low price. We can limit the number of assets we plan to trade and buy or sell the required amount in a few transactions to fix insufficient liquidity for this trade error.
Check Your Internet Connection
Insufficient liquidity error may sometimes be caused due to poor connectivity. So remember to check your internet connection by using a high-speed internet connection, using a different laptop or mobile device, turning off VPN, or even switching browsers may help.
Switch To a Different Exchange
The final option available is to switch to another exchange that provides the trading pair you’re seeking if all the above methods failed. There are other available exchanges like TraderJoe, Bogged Finance, HoneySwap, SushiSwap, and DODO Exchange that you can use and see if you can fix insufficient liquidity for this trade error.
Related: Decentralized Crypto Exchanges | 11 Best Exchanges To Make A Purchase
Wrapping Up
We hope this article has explained to you all the available methods on how to fix insufficient liquidity for this trade error. For more such informative and interesting articles, check us out at Deasilex.
Frequently Asked Questions
Q1. What Happens When There Is Not Enough Liquidity?
Ans. A severe rise in demand and a sharp decline in the availability of cash occur during a liquidity crisis, and the ensuing lack of accessible money can result in widespread defaults and even bankruptcy.
Q2. How Do You Increase Crypto Liquidity?
Ans. Liquidity is improved through increased trade volume and frequency. Some people store their bitcoins somewhere other than exchanges. More of these holders are eager to trade their bitcoins as popular exchanges grow more safe, increasing the number of buyers and sellers.
Q3. How Do Crypto Liquidity Pools Make Money?
Ans. There are greater rewards in some liquidity pools than in others. A trader can gain more LP tokens, trading commissions, and crypto assets by taking part in them. Liquidity mining is this trading strategy’s best practice.
Q4. Can You Sell Crypto With Low Liquidity?
Ans. It is difficult to quickly buy or sell cryptocurrency assets on exchanges with low or poor liquidity. It would take longer to purchase cryptocurrencies with low liquidity because fewer people are holding the asset as market stability is also crucial for liquidity.
Q5. Which Is Better Centralization Or Decentralization Crypto?
Ans. Exchanges that are centralized are significantly more prone to hacking and data leaks than exchanges that are decentralized. A hacker just needs to get beyond the exchange’s security measures to gain access to user holdings, financial data, and other potentially harmful information.
