What is a crypto spread? The gap between the buy and sell price

By SendPay Business · · 2 min read

What is a crypto spread? The gap between the buy and sell price

The spread is the gap between the price you can buy a coin at and the price you can sell it at, at the same moment. It is a cost of trading even when an app says there is no fee.

A simple exampleWhy spreads existSpread vs fee

A simple example

An app shows Bitcoin at £50,500 to buy and £49,500 to sell. The spread is £1,000, about 2%. If you bought £1,000 of Bitcoin and sold straight away, you would get back about £980 before any fees, even though the price did not move.

Why spreads exist

On an exchange, the spread is the gap between the highest price a buyer will pay and the lowest price a seller will accept. Busy coins with lots of buyers and sellers usually have tight spreads. Smaller coins, and quiet times, often have wider ones. Some simple buy-and-sell apps also add their own margin to the spread.

Spread vs fee

  1. A fee is charged separately and usually shown as a percentage or a fixed amount.
  2. A spread is built into the price, so it is easy to miss.
  3. To see the full cost, compare the price you are quoted with the mid-price shown on a price-tracking site at the same moment.

Where SendPay fits

SendPay platforms let your customers buy, sell and hold crypto next to their cash, under your own brand. You set the trading fee, and assets are held with regulated partners.

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Create your own financial platform.

Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.

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Questions people ask

How do I work out what a crypto spread costs me?

Enter the buy and sell price your app shows and how much you plan to spend, and the free calculator shows the spread, the cost of buying and selling straight back, and the rise needed to break even.

Crypto spread calculator →
How do crypto exchange fees work?

The main fees and how they add up.

Crypto exchange fees explained →
What is crypto liquidity?

How easily a coin can be bought or sold.

What is crypto liquidity? →
What is a forex spread?

The same idea for currencies.

What is a forex spread? →

Read next

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.