{"id":2760,"date":"2024-06-30T11:03:39","date_gmt":"2024-06-30T11:03:39","guid":{"rendered":"https:\/\/bitcoin-zukan.com\/?p=2760"},"modified":"2024-06-30T11:03:42","modified_gmt":"2024-06-30T11:03:42","slug":"spread","status":"publish","type":"post","link":"https:\/\/bitcoin-zukan.com\/en\/investment-en\/spread\/","title":{"rendered":"Comparison of Bitcoin Spreads: Current State of Japanese Cryptocurrency Exchanges"},"content":{"rendered":"
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I’ve heard that the spreads for buying bitcoin can be quite wide. Can you show me a comparison of different cryptocurrency exchanges?<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n<\/div>\n\n\n\n

When buying bitcoin on a cryptocurrency exchange, there is often an “invisible fee” known as the “spread.”<\/p>\n\n\n\n

Many cryptocurrency exchanges state that they have “no transaction fees,” but in reality, the spread can end up costing you more.<\/p>\n\n\n\n

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In this article, I’ll provide a detailed comparison of the spreads at 11 Japanese cryptocurrency exchanges.<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n\t

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This article was written in Japanese and converted to English using a translation tool.
Date of writing (Japanese version): December 2023<\/p>\n\n\n\n

Comparison of Bitcoin Spreads at Japanese Cryptocurrency Exchanges<\/h2>\n\n\n
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Measurements were taken around 8 PM on November 13, 2023. Note that spreads fluctuate constantly.<\/figcaption><\/figure>\n<\/div>\n\n\n

Among the 11 cryptocurrency exchanges compared, OKCoinJapan had the narrowest spread as of the November 2023 survey.
For example, if you buy 100,000 yen worth of bitcoin and sell it immediately, a 1% spread would cost you 1,000 yen, whereas a 5.9% spread would cost you 5,900 yen.<\/p>\n\n\n\n

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The description says there are “no bitcoin transaction fees,” but the spread actually costs quite a bit!<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n<\/div>\n\n\n\n

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Compared to stocks, forex, and other investments, the spreads on cryptocurrency exchanges are significantly wider.<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n\t

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Measured in January 2024, spread of the sales exchange format<\/p>\n\n\n

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Measurements were taken around 3 PM on January 10, 2024. Note that spreads fluctuate constantly.<\/figcaption><\/figure>\n<\/div>\n\n\n

Spreads in the form of sales offices, measured in April 2024<\/p>\n\n\n

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Measurements were taken around 3:00 PM on April 4, 2024. Spreads always fluctuate.<\/figcaption><\/figure>\n<\/div>\n\n\n
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When you measure on different days, some exchanges have consistent spreads, while others show significant variation.<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n<\/div>\n\n\n\n

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Remember that spreads can change dramatically even within a single day.<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n\t

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Spreads in Exchange Format (Reference)<\/p>\n\n\n

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Data collected around 2:00 PM on February 7, 2024. Spreads fluctuate constantly.<\/figcaption><\/figure>\n<\/div>\n\n\n
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The exchange format has a very narrow spread!<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n<\/div>\n\n\n\n

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There’s a significant difference in the spread between the sales exchange format and the exchange format.<\/p>\n\n\n\n

To buy bitcoins at a lower cost, consider using the exchange format.<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n\t

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What is a Bitcoin Spread?<\/h2>\n\n\n
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I’m not really sure what a Bitcoin spread is.<\/p>\n\n\n\n

I’ve heard that virtual currency spreads are often very high\u2026<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n<\/div>\n\n\n\n

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The spread is the difference between the buying and selling prices. <\/p>\n\n\n\n

In simple terms, it’s like a hidden fee.<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n\t

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Virtual Currency Spread<\/h3>\n\n\n
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The spread is the “difference between the bid and offer prices,” a term used not only for Bitcoin but also for stocks, forex, and other types of trading.
The spread indicates the cost of trading; the narrower the spread, the lower the transaction cost.<\/p>\n\n\n\n

Spreads tend to be narrower in highly liquid (actively traded) markets, and Bitcoin spreads are generally narrower compared to other virtual currencies.
Keep in mind that spreads tend to widen during sudden market price fluctuations, which can increase your cost burden.<\/p>\n\n\n\n

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So, the spread isn’t fixed and is always fluctuating.<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n<\/div>\n\n\n\n

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For virtual currencies, the spread at “sales exchanges” is particularly wide.<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n\t

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Sales Exchanges Have Higher Spreads<\/h3>\n\n\n
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There are two types of virtual currency exchanges: “sales exchanges” and “exchange formats.” Sales exchanges have particularly wide spreads.<\/p>\n\n\n\n

At a sales exchange, the operator sets the buying and selling prices, and the difference (spread) is effectively their commission.
If you want to save money, it is recommended to use an exchange format where users set their desired prices to each other.<\/p>\n\n\n\n

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So, the spread at a sales exchange is like a hidden fee\u2026 Are there any benefits to using a sales exchange despite the wider spread?<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n<\/div>\n\n\n\n

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Sales exchanges offer advantages such as ease of use for beginners and instant transaction execution, making them suitable for those nervous about buying virtual currency.<\/p>\n\n\n\n

However, there is a similar system overseas, but the spread is much smaller than in Japan\u2026<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n\t

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I wish Japanese virtual currency exchanges had tighter spreads at their sales exchanges.<\/p>\n<\/div><\/div>\r\n\t<\/div>\r\n<\/div>\n\n\n\n

Fees for Sales Exchanges and Exchange Formats<\/h3>\n\n\n
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The fee structure of virtual currency exchanges can be complex. In addition to visible transaction fees, there’s often a hidden fee called the “spread.”<\/p>\n\n\n\n

At first glance, it may seem that sales exchanges are more economical since they often advertise “no transaction fees,” while exchange formats have set transaction fees.
In reality, however, sales exchanges have wider spreads set by the operator, making exchange formats more cost-effective.<\/p>\n\n\n\n

Sales Exchange Spread vs. Exchange Trading Fees<\/p>\n\n\n\n

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