📉🤔 Impermanent Loss: It is the difference in value between having your tokens stored in the wallet vs. having them in a pool, it occurs when the price of the assets changes drastically since you deposited them in the Liquidity Pool. It is only a "loss" if you withdraw at the wrong time! 🧘♂️.
💸💨 Slippage: It is when the price was worse than you expected, it occurs due to lack of liquidity in the pair or high volatility in seconds. You can avoid it by adjusting the slippage tolerance in the settings (0.5% - 1%). If it is too high, you might be facing a "Honeypot". Be careful! 🍯.
⛽🔥 Gas Fees: Moving your assets has a cost, and understanding it will save you hundreds of dollars. It’s about the fee you pay to miners/validators to process your transaction. It is not fixed. It depends on how congested the network is at that moment. If you use networks like $BNB Chain or $SOL for low fees, or wait until the early morning to operate on Ethereum. 🌙.
📜🤖 Smart Contracts: Imagine a contract that fulfills itself, without lawyers or notaries. That’s Web3! If A happens, then B occurs. No humans involved. Once on the blockchain, no one can change them. 🛡️ From automatic loans to creating your favorite NFTs.
💓📊 Liquidity: Can you sell your assets right now without moving the price? That’s liquidity, many buyers and sellers. You enter and exit easily. Low Liquidity: Danger! You can get "trapped" or sell at a huge loss due to lack of counterpart. Always check the 24h volume before entering a new project.
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