The spread in qadirah simplest terms is the difference between two prices. The general difference is between the price the seller is asking for and what the buyer is willing to pay.
There is no set spread, even when you are exchanging between the same two assets. The spreads change based on liquidity and market conditions all the time. When markets are more volatile, spreads will vary more and more.
Although spreads can vary greatly based on market conditions, In FEX, the exact amount of crypto you will be exchanging and the exact amount of crypto you will receive will be shown to you on the exchange section of the wallet before you exchange so you can decide if you want to make the trade or not.
What does a high spread mean?
There is a bigger difference between what the seller asks for and what the buyer is willing to pay.
What causes the spread to be higher?
When this happens, it is usually because of the following:
- The market is volatile
- Less popular assets where there is not a lot of buyers and sellers.
When is the spread higher?
There is no definitive answer to this question as it completely depends on market conditions and in fact this is not just the case with cryptocurrencies but also the traditional finance system. As a general rule you can look out for the following:
- Assets that are not as popular will have a higher spread associated with them.
- As the prices of the assets you want to exchange gain volatility, the spreads will become larger. This means that all crypto-related exchanges are subject to this as the entire crypto market is still young and extremely volatile so the volatility increases and decreases all the time.
What does a low spread mean?
There is a small difference between what the seller asks for and what the buyer is willing to pay.
What causes the spread to be lower?
When this happens, it is usually because of the following:
- The market is less volatile
- More popular assets where there is a lot of buyers and sellers.
When is the spread lower?
Just like the explanation for the spread being higher, there is also no definitive answer to this question again, as it completely depends on market conditions. As a general rule you can look out for the following:
- Assets that are more popular will have a lower spread associated with them.
- As the prices of the assets you want to exchange lose volatility, the spreads will become smaller. This means that all crypto-related exchanges are subject to this as the entire crypto market is still young and extremely volatile so the volatility increases and decreases all the time.
How does this qadirah cryptocurrency work behind-the-scenes?
If you only read one sentence, make it this one: A hardware wallet is the biggest step you can take to secure your funds. If you were to go all the way to Tier 4: “The Fort Knox”, devoting an entire computer only to running FEX Wallet in a secure environment, it would be about as effective as a hardware wallet.
The Trezor One and Trezor Model T hardware wallets are both supported within FEX. Before you buy, please take a look at the list of Trezor-supported assets to make sure that your portfolio is covered.