When trading cryptocurrency on Digital Surge, it’s helpful to understand spreads, as they form part of the cost of entering or exiting a trade. This guide explains what spreads are, why they exist and how they affect your trading experience.
What is a spread?
A spread is the difference between the buy price and the sell price of a cryptocurrency at any moment.
For example:
Buy price: $90,000
Sell price: $89,000
Spread: $1,000 (about 1.11 percent)
Spreads are normal in all financial markets. In crypto, spreads commonly range from 0.5 percent to 3 percent, depending on the asset and market conditions.
Spread vs trading fee
The spread is not the same as the trading fee.
Spread: Built into the difference between the buy and sell prices
Trading fee: A separate percentage fee applied to your transaction
Both the spread and the trading fee contribute to the total cost of your trade, so it’s helpful to be aware of both when reviewing prices.
Why spreads exist
Spreads vary based on several factors:
Liquidity: High-liquidity assets generally have smaller spreads
Volume: Heavily traded assets often have tighter spreads
Volatility: Rapid price movement can widen spreads
Market conditions: Low activity or uncertainty can increase spreads
How spreads work on Digital Surge
Digital Surge displays the prices available for you to buy and sell at in real time. These prices already include the spread, which is influenced by:
Asset liquidity
Current market activity
Broader trading conditions
Because markets move constantly, spreads may become tighter or wider throughout the day.
Need more help?
If you have any questions, please don’t hesitate to contact our support team.