Spread
The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller will accept (ask) for a cryptocurrency. A narrow spread indicates high liquidity; a wide spread suggests lower liquidity or higher risk.
Why It Matters
The spread is the difference between the buying and selling prices of an asset. This concept is important as it can highlight market liquidity and influence transaction costs for traders.
Example
If you're looking to buy Bitcoin at $30,000 and the selling price is $30,200, the spread is $200. Understanding this can help you gauge how much you might need to pay extra when trading.
Beginner Context
For beginners, learning about spreads is essential for grasping trading costs. It highlights that while you may want to buy at a certain price, transaction costs can affect overall profitability.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
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