If you've noticed that the price to buy a coin is a little higher than the price to sell it, that gap is called the spread. This article explains what it is, why it exists, what makes it bigger or smaller, and how it differs from the trade fee.
What is the spread?
When you trade crypto, there's always a difference between the buy price and the sell price. This difference is known as the spread.
Buy price – the price you pay to purchase crypto.
Sell price – the price you receive when you sell.
The spread – the gap between the two.
Example (hypothetical prices): If you can buy Bitcoin at $101,000 and sell it at $100,000, the spread is $1,000.
Why does the spread exist?
The spread is a market-driven margin that reflects the natural dynamics of supply and demand, and the cost of providing a seamless, instant trading experience.
Think of it this way: imagine you're exchanging USD at the airport. The rate you sell USD at is slightly less than the rate you buy USD at. That difference isn't listed separately; it's how the counter covers its costs for offering the service.
Crypto works similarly. Coinstash and other exchanges don't show the spread as a separate line item. Instead, it's built into the price you see.
Is the spread always the same?
Not always. The spread can vary depending on:
Market volatility: bigger price swings mean wider spreads.
Trading volume: more trading means tighter spreads.
Foreign exchange (FX) rates: crypto is priced in USD and converted to AUD, so shifts in the USD/AUD exchange rate can affect the spread.
Coin liquidity: popular coins like BTC and ETH usually have smaller spreads than lesser-known or low-volume coins. See What is Liquidity?
Spread vs trade fee
Every trade on Coinstash involves both a spread and a trade fee. They're two different things:
Spread: built into the buy and sell prices you see.
Trade fee: charged on top, as a percentage of your trade. It's shown before you confirm and recorded in your Trade History. See What is the Trade Fee?
Our commitment to transparency
At Coinstash, our goal is to make crypto easy to understand and accessible. That's why:
The spread is built into the quoted price, and the trade fee is shown separately before you confirm, so you can see the full cost of a trade before you go ahead.
We aim to keep our spreads as tight and competitive as possible.
We're always happy to explain how our pricing works.
FAQ
Is the spread the only cost of trading? No. A trade fee also applies to each trade. See What is the Trade Fee?
Why does the spread look bigger on some coins? Smaller or less-traded coins have fewer buyers and sellers, so the gap between the buy and sell price tends to be wider. See Slippage and liquidity explained.
Why did the spread change during the day? Spreads move with market volatility, trading volume and the USD/AUD exchange rate, so they can widen during busy or volatile periods.
Need a hand? Our Brisbane-based support team is here to help — tap the chat icon in the app or on the website to get in touch.