Can the type of asset affect the size of the spread?

Yes, the type of asset can affect the size of the spread. Generally, more liquid and widely traded assets like major cryptocurrencies or stocks of large companies tend to have smaller bid-ask spreads. This is because there are more buyers and sellers in the market for these assets, resulting in higher liquidity and tighter spreads.

Lesser-known or newly released assets tend to have wider bid-ask spreads due to fewer buyers and sellers or liquidity. The spread represents the difference between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask). With less liquidity, the spread widens to compensate for the increased risk and uncertainty.