Bid-Ask Spread

The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for a cryptocurrency on an exchange.

• Bid — the best current buy offer
• Ask — the best current sell offer
• Spread = Ask − Bid

Example

If Bitcoin's best bid is $100,000 and best ask is $100,050, the spread is $50 (or 0.05%).

Why it matters for miners

When miners sell mined coins on an exchange, they execute a market sell — which fills at the bid price, not the mid-market price. A wide spread means selling at a worse rate than the displayed price.

• Liquid markets (BTC, ETH, LTC) have tight spreads — often less than 0.1%
• Illiquid altcoins can have spreads of 1–5% or more, significantly reducing actual proceeds

What affects spread size

• Trading volume — higher volume = tighter spreads
• Market maker activity — more competing orders narrow the spread
• Volatility — spreads widen during rapid price moves

See also

• Exchange
• Altcoin
• Volatility