A bid is an offer to purchase a specific quantity of an asset, such as a cryptocurrency, at a certain price. It represents the buyer’s willingness to pay for a coin or token and is a crucial part of trading. In trading platforms, bids are often listed alongside asks, which are offers to sell an asset at a specified price.

The difference between the highest bid and the lowest ask is known as the spread. A narrower spread typically indicates a more liquid market, where buyers and sellers can easily execute trades. When someone places a bid, they can specify the amount they want to buy and the price they are willing to pay. If another trader accepts their offer, a transaction occurs.

Bids can be seen in real-time on exchanges, allowing traders to gauge market sentiment and decide their strategies accordingly. Understanding bids and how they interact with asks helps traders make informed decisions about buying and selling within the market. It’s an essential concept for anyone involved in trading assets.