How do the bid and ask prices affect cryptocurrency trading?

1 answers

• Jan 13, 2022 · 3 years ago
  At BYDFi, we understand the importance of bid and ask prices in cryptocurrency trading. The bid price represents the demand for a particular cryptocurrency, while the ask price represents the supply. When the bid price is higher than the ask price, it creates a buying pressure, driving the price up. Conversely, when the ask price is higher than the bid price, it creates a selling pressure, pushing the price down. Traders use the bid and ask prices to identify potential support and resistance levels, as well as to determine the best time to enter or exit a trade. It's crucial to stay updated with the bid and ask prices to make informed trading decisions in the dynamic cryptocurrency market.
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