In this article, we focus on the lowest crypto spread trading exchange on the spot markets AVAX/USDT, LUNA/USDT, SOL/USDT, DOT/USDT and ADA/USDT.
We will cover some of the top Bitcoin and altcoin trading sites like Kucoin, Binance, Bybit, Crypto.com, Kraken, and MEXC Global.
What is a crypto spread?
A crypto spread is a gap between the bid and the asking price.
What does this mean?
If a trader asks for $51.000 for 1 Bitcoin and another trader is prepared to pay $49.000 for 1 Bitcoin, the spread is $2000.
There is always a spread in an order book since all met trades are executed and disappear from the order book.
Why is the spread important?
The spread is essential since it is one kind of fee you pay for every trade. However, if you are a HODLer with a long-term investment strategy and will rarely make trades, it is not very important to analyze the spread.
However, if you are a frequent trader or even a day trader, the spread will be vital and can even be the difference between becoming a profitable trader or not.
Lowest Crypto Spread Trading Exchange - Diagram
There are different spreads in different order books. Since all the centralized exchanges have individual order books, other spreads exist in the same markets but on various exchanges.
For example, BNB/USDT spreads are different on various crypto trading exchanges.
We have compared the following crypto trading exchanges
with regards to the spread on the following markets
Why did we choose these markets?
We want to cover large markets that people like to trade, but BTC/USDT and ETH/USDT are too liquid markets with high trading volumes. When there are high trading volumes and liquid markets, the spread becomes negligible at 0.01% on all exchanges and markets.
In the diagram above you can see all the crypto trading spreads for five of the most traded markets on Binance, Kucoin, Bybit, Crypto.com, Kraken and MEXC. The data was collected from Coingecko in April 2022.
Lowest Crypto Spread Trading Exchange - Table
Below, you find the same number but in a table format. We can easily read out that the spread is negligible in most cases. However, for MEXC the spread is much larger than the other trading platforms.
It would be best to consider such a big jump when selecting what crypto trading platform you should go with.
Especially since MEXC is not offering the lowest crypto exchange spot trading fees either.
How to make a full crypto exchange review?
Spread is only one small parameter to consider when comparing crypto exchanges.
However, you probably want to compare more important things before you go for a crypto trading site.
Here, we list a few things you might want to compare to get a full crypto review of a trading site.
At the same time, it’s important to understand what is most important for your trading since there is no trading site that is best on all parameters.
Crypto Trading Slippage
Crypto trading slippage refers to the difference between the actual price and the intended price. Crypto trading slippage occurs when there is a large market order placed on a thin order book.
When a large market order I placed on a thin order book only a small part will be executed on the “market price”. The rest of the order will eat up the order book and the average price for the whole order will be different from the intended price or the market price. Read more about the crypto trading slippage meaning and tolerance.
Crypto Trading Spot Trading Fees and Derivative Trading Fees
Crypto trading fees are probably one of the most important parameter to compare between crypto exchanges. There are different trading fees for the spot market and the derivative market.
In addition, there are many different ways to reduce your trading fees from the default listed trading fees. Examples can be to hold the native token of the exchange, have a high trading volume the last 30 days, pay the trading fees with the native token, use our referral code and mroe.
See our articles about Crypto exchanges with the lowest spot trading fees or
Crypto Exchange and Listed Markets
If you are about to trade small altcoins the most important parameter to consider is if the exchange has your token or cryptocurrency listed. There are some exchanges focusing on listing as many altcoins as possible. Read our article about crypto exchanges with most listed markets and cryptocurrencies.
Crypto Exchange KYC Requirements
For different reasons, many crypto traders are looking for trading sites with limited KYC requirements. It could be they are living in a controlled jurisdiction or just want to be anonymous by nature or think it’s annoying to do KYC. Whatever the reason is, see the article Non-KYC verification withdrawal limits among different crypto exchanges.