Bitcoin traders frustrated as Coinbase spread widens to $2,550

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Bitcoin’s price movements are always a spectacle, but the latest trading spreads on Coinbase are raising eyebrows. The cryptocurrency is currently sitting at $103,500, yet if you want to buy on Coinbase, you’ll pay $104,500. Selling, on the other hand, will only fetch $101,950. That’s a $2,550 spread, a gap that traders are finding hard to ignore.

Spreads in crypto trading represent the difference between the buy (ask) and sell (bid) prices of an asset. During periods of high volatility, these spreads tend to widen as market makers adjust for risk. Liquidity also plays a role—when fewer traders participate, spreads increase. Coinbase, like other exchanges, modifies spreads to manage operational risks, but some users argue that the costs are excessive.

The reality is that crypto trading isn’t cheap. While Bitcoin remains the most liquid digital asset, even its spreads can fluctuate dramatically. Traders looking to minimize costs often turn to limit orders, which allow them to set their own buy and sell prices rather than accepting the exchange’s rates. High-volume assets like Bitcoin tend to have tighter spreads compared to smaller cryptocurrencies, but even here, the costs can add up.

Some users suspect that exchanges intentionally widen spreads to maximize profits, though concrete evidence of exploitation remains elusive. The crypto market operates differently from traditional finance, where bid-ask spreads are often regulated. In the decentralized world of digital assets, exchanges have more flexibility in setting prices, leading to concerns about fairness.

Sources:

https://cryptonews.net/news/bitcoin/30963753/

https://www.coinbase.com/

https://help.coinbase.com/en/coinbase/trading-and-funding/pricing-and-fees/fees