Cryptocurrency Q&A
How to compare bid-ask spread of different cryptocurrencies or assets?
How to compare bid-ask spread of different cryptocurrencies or assets?
MichaelSmith
Tue Aug 06 2024
|
5 answers
1055
How would one go about comparing the bid-ask spread of various cryptocurrencies or assets? Is there a standard methodology or tool that is commonly used? What factors should one consider when making this comparison? And how does the bid-ask spread affect the profitability and liquidity of a cryptocurrency or asset?
5 answers
SumoPowerful
Thu Aug 08 2024
Evaluating the bid-ask spread of cryptocurrencies and assets in percentage terms is essential for accurate comparison. The process involves a straightforward calculation that can be applied to any digital asset.
Was this helpful?
194
67
Chloe_thompson_artist
Wed Aug 07 2024
In addition to facilitating comparisons, understanding the bid-ask spread is crucial for traders, as it provides insights into market liquidity and the potential cost of executing trades. Among the many exchanges offering trading services for cryptocurrencies, BTCC, a UK-based platform, stands out.
Was this helpful?
80
44
Leonardo
Wed Aug 07 2024
To demonstrate this, let's consider the example of BIFI. At the time of analysis, BIFI's ask price was $907, representing the price at which a seller is willing to part with their holdings.
Was this helpful?
385
84
Martino
Wed Aug 07 2024
Concurrently, BIFI's bid price stood at $901, reflecting the price at which a buyer is prepared to acquire the asset. The difference between these two prices forms the bid-ask spread.
Was this helpful?
346
98
MountFujiVista
Wed Aug 07 2024
Calculating the percentage bid-ask spread involves dividing the difference between the ask and bid prices by the ask price and multiplying the result by 100. For BIFI, this would be (($907 - $901) / $907) * 100.
Was this helpful?
50
41
