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Decentralized exchanges are, for many, a solution for the centralized money system we have been experiencing since forever.
Trading, selling, buying, and swapping on these exchanges is usually pretty easy - just connect your wallet, enable the DApp browser and start your genuinely decentralized crypto journey.
Nonetheless, if you are trying to swap tokens in the market and an error message that says “Insufficient Liquidity for this trade” appears, then this will prevent you from completing the transaction.
We are aware that some users have experienced this when trying to swap some currencies, which creates the need to find a solution for this once and for all.
In this blog post, we’ll be covering the following topics:
- How to fix “Insufficient liquidity for this Trade;”
- The meaning of the “Insufficient Liquidity for this Trade” error message;
- How to solve the liquidity issue in different exchanges.
Table Of Contents
What Does “Insufficient Liquidity for This Trade” Mean?
First of all, it’s important to understand the concept of liquidity in your transaction.
Total liquidity represents the amount of a token or currency that can be traded, in this case, in the cryptocurrency market.
This total value is normally related to new tokens and assets.
So, in other words, if a coin doesn’t have enough liquidity, users won’t have the ability to acquire or trade it.
This will be a clear obstacle for your transactions in the near future, causing the “Insufficient Liquidity for this trade” error message to appear in different decentralized platforms.
Providing Liquidity in Decentralized Exchanges
Liquidity providers can get into liquidity pools with their funds as a way to provide real liquidity to the decentralized platform.
When a liquidity provider submits their assets to a liquidity pool, they do it in exchange for offices and transaction fees.
So, a liquidity provider will later on earn transaction fees whenever other users use the liquidity pool.
Depending on the current exchange rate, liquidity providers must deposit certain amounts determined by the PancakeSwap smart contract or UniSwap smart contracts, for example.
Pro Tip: If, for instance, you want to sell or Buy Safemoon on Trust Wallet, you can check the prices on a decentralized exchange, such as PancakeSwap.
This also applies to other tokens and assets that you want to swap, trade, or other transactions on the market, so the “Insufficient Liquidity for this trade” error message might also appear here.
How to Solve “Insufficient Liquidity” Error
The “Insufficient Liquidity for this Trade” error appears depending on the token and decentralized exchange you are using.
For practical purposes, we are going to focus on how to solve this error in two of the biggest decentralized crypto exchanges: UniSwap and PancakeSwap.
It doesn’t matter which exchange you use for your transactions - the important thing is to find a proper fix for this error so you can go back to buying, swapping, selling, and more.
So, let’s not wait any longer!
Read Also: Mining tokens is an activity that requires resources, but that can provide good revenue in the long haul.
Learn How to Mine Ravencoin by reading the guide we’ve written for you!
Fix 1: Switch to an Older Exchange Version
Recently, PancakeSwap migrated to a newer version called V2.
Basically, some tokens are no longer supported on the V2 version, but they work nonetheless on the V1 version.
So, if you are having trouble with a specific token, just switch to the previous version of the exchange and you’ll be good to go.
Follow these steps to complete this process:
- Open PancakeSwap on your phone;
- On the main menu of the exchange, you will find an option that says V1 (old);
- A confirmation screen will appear telling you that there’s a price difference and you might experience significant slippage between the versions - tap on “Continue to V1 anyway,” and you’ll be good to go.
Now, you can try again to swap tokens in the market using the older version to check if that solves the liquidity problem.
Fix 2: Set a Higher Slippage Tolerance
Sometimes, you can’t swap tokens because the Slippage Tolerance is too low or too high.
New coins and tokens often have default slippage tolerances that are too low.
In that case, set the slippage tolerance to 12% on PancakeSwap to check if you can now trade the asset.
The same goes for UniSwap if you are trying to swap an equal amount of tokens.
The excessive price fluctuation of some tokens might be causing the error, which is why it’s fundamental to set a tolerance way above the default one.
To learn more about UniSwap Slippage Tolerance, click here.
Pro Tip: Linking Trust Wallet with decentralized exchanges such as PancakeSwap and UniSwap is very common.
If you want to Withdraw from Trust Wallet to Bank Account, you’ll need to swap the tokens first, which is why fixing the liquidity problems is fundamental.
Fix 3: Check the Decentralized Exchange Server Status
If you have already changed to an older version of the exchange or fixed the slippage tolerance and you still can’t properly use the platform, it’s time to take a look at the server.
As it happens with centralized exchanges, sometimes centralized servers might also fail (nonetheless, this is infrequent to happen).
You can check this on a third-party website, such as these ones: PancakeSwap Server and UniSwap Server.
In any case, this inconvenience should eventually resolve by itself, so have some patience!
These fixes should get your liquidity problems solved!
For more crypto-related content, check GrowFollowing constantly.
“Insufficient Liquidity for This Trade” FAQ
What’s a Liquidity Pool on PancakeSwap?
A liquidity pool in PancakeSwap is a mechanism where liquidity providers can add their funds to increase liquidity in exchange for rewards, such as trading fees and so on.
Learn more about PancakeSwap Liquidity Pools here.
Can You Add Liquidity to UniSwap?
You can indeed add more liquidity to Uniswap using your MetaMask Wallet and selecting a trading pair.
For full details about this specific process, we recommend you check the official UniSwap Website.
About the author
Steve
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.
