What is the spread in crypto, and how much does it cost?
Why the price you pay is higher than the market price, how to spot a wide spread, and how to avoid paying it.
What the spread is
Every market has a best price to buy (the ask) and a best price to sell (the bid). The spread is the gap between them. When you buy at the ask, you pay above the mid price, and that difference is a cost even though it never appears as a fee.
Where spreads are wide
Spreads are tight on busy order books for major coins and wider for small coins, quiet hours and large orders. Instant 'buy' screens and broker-style apps often add their own markup on top, which can be 0.5% to 2% or more.
How to check it yourself
Compare the price quoted on the buy screen with the mid price on the exchange's order book or a price index at the same moment. The difference, divided by the mid price, is the spread you are paying.
How to pay less
Use the exchange's advanced trading view, place a limit order at or near the mid price, and split large orders. A limit order that waits in the book usually pays the lower maker fee too.