Want to learn more about cryptocurrency? This article can help. We also have several videos in the Crypto section of the Venmo app - check them out!
What is a price “spread”?
Price spreads are the difference between the highest buy order and the lowest sell order on any exchange. Every purchase or sale of cryptocurrency occurs in a marketplace, and between two entities. The person buying wants the lowest price, and the person selling wants to get the highest price at any point. This creates a gap in their expectations, known as a spread.
That's why the price you can buy at may be higher than the price you can immediately sell at.
How do spreads affect the market?
Depending on the situation spreads can lead to increased price volatility, and price variation amongst crypto exchanges.
The pricing of cryptocurrency seems to vary based on which service I'm using. Why? Am I getting the best price with Venmo?
Crypto price variation is common across crypto exchanges, and happens for a number of reasons:
- Crypto trading volume at a large vs. a smaller exchange with less liquidity can impact price.
- Pricing and fee structure at the time of purchase is set by the exchange/service, which can also vary.
- Price 'spreads' might impact the purchase price.
It's important to understand pricing before making any purchases.
Why is there an exchange rate for cryptocurrency?
Since crypto is digital money, you're essentially swapping one currency for another when you buy and sell it. The exchange rate tells you how much crypto or dollars you'll get in the swap and refreshes often because the value of crypto is constantly changing.
What is PayPal USD (PYUSD)?
PayPal USD (PYUSD), is a type of cryptocurrency called a stablecoin and is fully backed by US dollar deposits, US treasuries, and similar cash equivalents. You will be able to buy and sell 1 PYUSD for 1 USD on Venmo and PayPal.
What can I do with PYUSD?
You can buy or sell PYUSD on Venmo.
You can send it other people on Venmo and PayPal without fees. Plus, you can send it to other wallet addresses that support PYUSD (network fees will apply).
Are the fees for PYUSD?
There are no fees to buy, sell, or PYUSD. There also aren’t any fees for sending PayPal USD to other Venmo users or PayPal accounts.
Network fees will apply when sending PYUSD to wallet addresses outside of Venmo or PayPal. Learn more about fees for buying, selling, or transferring cryptocurrencies on Venmo.