What Is a Spread? | Cryptocurrency Glossary

The spread indicates the price difference between buying and selling

"Spread" is a term used in currency trading, including foreign exchange (forex) and FX trading, and refers to the difference between the price at which you want to buy a currency and the price at which you want to sell it.

The word "spread" literally means "width" or "breadth," and it is easiest to understand it as the price gap between the "BID" (the price at which you can sell) and the "ASK" (the price at which you can buy).
Cryptocurrencies are not only used for payments and remittances but also serve as investment assets, with trading taking place on exchanges.

Since you make a profit by buying low and selling high, it is crucial to check the current buy price (ASK) and sell price (BID), as well as to predict future trends. For
example, in a Bitcoin-to-yen trade where the ASK is 30,000 yen and the BID is 29,950 yen, the spread is 50 yen.

In this case, buyers can purchase at 30,000 yen, and sellers can sell at 29,950 yen. It is generally said
that the smaller the spread, the easier it is to generate profits in trading and investing.
Generally, since the cryptocurrency trading market is still in its early stages and growing, the spread—which represents the transaction cost—is larger than in FX trading.