What is a Bid-Ask spread?
Bid-ask spread represents the difference between the highest price a buyer is willing to pay and the lowest price at which the seller is willing to sell a particular cryptocurrency. The bid-ask price can be set in the open market, or it can be set by a market maker or other trading intermediary. The differences between the buy and sell prices set by traders with limited orders will define the spread in the open market.
Market makers usually set lower bid-ask spreads for coins with a higher level of liquidity. They will define a wider spread for altcoins with low liquidity and trading volume. The bid-ask spread is the premium paid to market makers for creating liquidity in the market.
