Can you provide a real-life spread example for a specific cryptocurrency pair?

3 answers

• Bhanu Priyanka ADec 21, 2024 · 6 months ago
  Sure! Let's take the example of Bitcoin (BTC) and Ethereum (ETH) trading pair on Binance. The spread is the difference between the highest bid price and the lowest ask price. For instance, if the highest bid price for BTC/ETH is $10,000 and the lowest ask price is $10,020, then the spread would be $20. This means that if you want to buy BTC, you would have to pay $10,020, and if you want to sell BTC, you would receive $10,000. The spread represents the cost of executing a trade and is essentially the profit for the exchange. It's important to consider the spread when trading as it directly impacts your profitability.
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• Emil LindhardsenJan 16, 2024 · a year ago
  Absolutely! Let's consider the spread for the Ripple (XRP) and Litecoin (LTC) trading pair on Coinbase. The bid price is the highest price that a buyer is willing to pay for XRP, while the ask price is the lowest price at which a seller is willing to sell XRP. If the highest bid price for XRP/LTC is $0.50 and the lowest ask price is $0.52, then the spread would be $0.02. This means that if you want to buy XRP, you would have to pay $0.52, and if you want to sell XRP, you would receive $0.50. The spread can vary depending on market conditions and liquidity. It's important to keep an eye on the spread to ensure you're getting the best possible deal.
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• Riddhi SanapJan 04, 2021 · 4 years ago
  Of course! Let's take a look at the spread for the Ethereum (ETH) and Tether (USDT) trading pair on BYDFi. The bid price is the highest price that a buyer is willing to pay for ETH, while the ask price is the lowest price at which a seller is willing to sell ETH. If the highest bid price for ETH/USDT is $2,500 and the lowest ask price is $2,510, then the spread would be $10. This means that if you want to buy ETH, you would have to pay $2,510, and if you want to sell ETH, you would receive $2,500. The spread can vary throughout the day as market conditions change. It's important to consider the spread when trading as it can impact your overall profitability.
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