Why is it important to understand bid and ask spreads in the world of digital assets?

1 answers

• Mar 08, 2022 · 3 years ago
  In the world of digital assets, bid and ask spreads are of utmost importance. As an investor, understanding these spreads allows you to assess the market's liquidity and the ease of buying or selling a particular asset. Wide spreads can indicate a lack of liquidity and potentially higher transaction costs, while narrow spreads suggest a more efficient market with lower costs. By keeping an eye on bid and ask spreads, you can make more informed decisions and avoid unnecessary risks. Remember, knowledge is power in the world of digital assets!
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