When buyers seek to purchase cryptocurrency or some other asset or security, they have to offer bids. The term “bid price” refers to the highest price that a particular trader is willing to spend on an asset. The bid price is usually lower than the ask price, which is the lowest price a seller is willing to accept for the asset. The gap between the bid price and the ask price is known as the bid-ask spread, a metric that reveals the asset’s liquidity.
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