Comment
Author: Admin | 2025-04-28
As the demand outweighs the supply — meaning more people are buying than selling — the sentiment will remain positive. At the same time, the Bitcoin bid and ask price will keep rising.However, if the supply exceeds demand, bid and ask prices will start drifting downward. This change can happen rather suddenly, so always remember to keep an eye on the market direction and market sentiment as well as the price. What Is the Bid-Ask Spread, and How Does It Work?Now that you understand how Bitcoin bid and ask price works, it is time to explain the bid-ask spread. The bid-ask spread is essentially the term for the gap between the lowest ask and the highest bid. It can be formed in two ways. The first way is for it to be created by a broker or some other trading intermediary. Another way is to simply represent the difference between the two orders. As such, it is created by traders in the open market. When it comes to crypto trading, most of it takes place on crypto exchanges. Therefore, the buying and selling orders are placed by the traders themselves. As a result, the exchange does not profit from the spread. Instead, it gets its profits from the trading fees.Markets that experience high volume tend to have low spreads, as they have high liquidity and there is higher competition between both buyers and sellers. However, markets with low liquidity can have rather significant spreads. But, since we are talking about
Add Comment