What Is the Impact of a Stablecoin's Bid-Offer Spread Compared to a Volatile Altcoin? ⎊ Path

What Is the Impact of a Stablecoin’s Bid-Offer Spread Compared to a Volatile Altcoin?

Stablecoins, by design, aim for minimal price volatility and have extremely high liquidity, especially those pegged to the US Dollar. Consequently, their bid-offer spreads are typically among the tightest in the crypto market, often fractions of a cent.

A volatile altcoin, with its high price risk and lower liquidity, will have a significantly wider spread, reflecting the higher transaction cost and risk premium required by market makers.

Why Do Stablecoins Typically Have a Very Narrow Bid-Offer Spread?

Why Is the ‘Penny Pilot Program’ Significant for Options Bid-Ask Spreads?

How Does an Asset’s “Quality” Influence Its Bid-Offer Spread?

Why Is the Bid-Offer Spread Often Wider for Low-Cap Altcoins Compared to Highly Liquid Assets like Bitcoin Futures?

Can a Wide Bid-Ask Spread Create an Arbitrage Opportunity?

How Does the Moneyness (ITM, OTM, ATM) of an Option Affect Its Bid-Offer Spread?

Why Do Centralized Exchanges (CEX) Often Have Tighter Spreads for Altcoins than Decentralized Exchanges (DEX)?

What Is the Impact of a Large Order Book on the Bid-Offer Spread?