What is the difference between bid and ask prices in cryptocurrency trading?

3 answers

• Dec 17, 2021 · 3 years ago
  The bid price in cryptocurrency trading refers to the highest price that a buyer is willing to pay for a particular cryptocurrency. On the other hand, the ask price is the lowest price at which a seller is willing to sell their cryptocurrency. The difference between the bid and ask prices is known as the spread. This spread represents the profit that market makers and exchanges make from facilitating trades. It's important to note that the bid and ask prices are constantly changing due to market demand and supply. So, when you place a buy order, you'll be matched with a seller who is willing to sell at or below your bid price, and when you place a sell order, you'll be matched with a buyer who is willing to buy at or above your ask price.
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• Dec 17, 2021 · 3 years ago
  Alright, let me break it down for you. The bid price is like the highest price a buyer is shouting out in the market, saying 'I'm willing to buy at this price!' On the other hand, the ask price is like the lowest price a seller is shouting out, saying 'I'm willing to sell at this price!' The difference between these two prices is the spread, and it represents the profit that the exchanges and market makers make. So, when you want to buy, you'll be matched with a seller who is willing to sell at or below your bid price, and when you want to sell, you'll be matched with a buyer who is willing to buy at or above your ask price. Got it?
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• Dec 17, 2021 · 3 years ago
  In cryptocurrency trading, the bid price is the highest price that a buyer is willing to pay for a particular cryptocurrency, while the ask price is the lowest price at which a seller is willing to sell their cryptocurrency. The difference between these two prices, known as the spread, is where the market makers and exchanges make their profit. When you place a buy order, you'll be matched with a seller who is willing to sell at or below your bid price, and when you place a sell order, you'll be matched with a buyer who is willing to buy at or above your ask price. It's important to keep an eye on the bid and ask prices as they constantly change based on market demand and supply.
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