how to buy crypto without spread

By understanding spread, selecting low-spread platforms, negotiating with market makers, and utilizing DEXs, you can minimize transaction costs and improve your crypto trading experience.

Jan 30, 2025 at 12:01 pm

How to Buy Crypto Without Spread

Key Points

• Understand the concept of spread.
• Choose a low-spread exchange or broker.
• Negotiate with market makers.
• Consider using a decentralized exchange (DEX).
• Look for zero-fee exchanges.
• Take advantage of loyalty programs and bonuses.

Step-by-Step Guide

1. Understand the Concept of Spread

Spread refers to the difference between the buy and sell prices of an asset. In the context of cryptocurrency, spread represents the difference between the price at which you can buy a cryptocurrency and the price at which you can sell it. The spread is typically expressed as a percentage of the market price.

For example, if the market price of Bitcoin is $10,000 and the buy/sell spread is 0.5%, the buy price would be $10,005 and the sell price would be $9,995. The spread in this case is $5.

2. Choose a Low-Spread Exchange or Broker

There are several cryptocurrency exchanges and brokers that offer low spreads. Some of the most popular low-spread exchanges include:

• Binance
• Coinbase
• Kraken
• FTX US
• Gemini

3. Negotiate with Market Makers

Market makers are individuals or firms that quote both buy and sell prices for a cryptocurrency. They provide liquidity to the market and help to ensure that there is always someone to buy or sell a particular cryptocurrency.

You can negotiate with market makers to get a better spread. To do this, you will need to contact them directly and inquire about their spread rates.

4. Consider Using a Decentralized Exchange (DEX)

DEXs are exchanges that allow users to trade cryptocurrencies directly with each other without the need for an intermediary. DEXs typically have lower spreads than centralized exchanges.

Some of the most popular DEXs include:

• Uniswap
• PancakeSwap
• SushiSwap
• Balancer

5. Look for Zero-Fee Exchanges

There are some cryptocurrency exchanges that offer zero-fee trading. This means that you will not pay any fees to buy or sell cryptocurrencies on these exchanges.

6. Take Advantage of Loyalty Programs and Bonuses

Some cryptocurrency exchanges and brokers offer loyalty programs and bonuses to their users. These programs can help you reduce your trading costs and improve your profitability.

FAQs

What is the difference between spread and slippage?

Spread is the difference between the buy and sell prices of an asset, while slippage is the difference between the price at which you expect to execute a trade and the price at which the trade actually executes. Slippage can occur due to volatility in the market or because the exchange is unable to fill your order at the requested price.

How can I avoid paying high spreads?

There are a number of ways to avoid paying high spreads, including:

• Choosing a low-spread exchange or broker.
• Negotiating with market makers.
• Considering using a DEX.
• Looking for zero-fee exchanges.
• Taking advantage of loyalty programs and bonuses.

What are some of the risks of buying crypto without spread?

There are some risks associated with buying crypto without spread, including:

• Increased volatility: The cryptocurrency market is highly volatile, and the prices of cryptocurrencies can fluctuate rapidly. This can make it difficult to profit from trading crypto without spread.
• Potential for manipulation: Market makers and other large traders can manipulate the spread to their advantage. This can make it difficult to get a fair price when you are buying or selling crypto.
• Increased slippage: Slippage can occur when the market is volatile or when the exchange is unable to fill your order at the requested price. This can result in you paying a higher price than you expected when you are buying crypto.