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RE: Why do Crypto Exchanges List Prices in Terms of being vs Bitcoin as opposed to USD? Help Figuring Out Cost Basis
I think this is one of the hardest things to wrap your head around as a newbie to cryptocurrency.
I was just trying to explain this to my girlfriend for 20 minutes and she just sat there with this blank stare on her face... hahahah
I get that Bitcoin is kind of the base currency same way the USD is the base currency for world business.
What I have a hard time with is with a stock I buy at $1.50 and sell at $2 I made 0.50 cents.
With alt coins I may have Bitcoin that I bougth at $2000 6 months ago which is now worth $2700. I then use that Bitcoin to buy a couple alts, I sit on those for a few weeks and they change, but the price of Bitcoin also changes so waht is my cost basis?
Is my cost basis Bitcoin at calculated at $2000 which is the price I bought my Bitcoin at? Is it figured at $2700 the amount my Bitcoin was worth when I bought the alt?
Then it gets even more complicated trying to figure it out if I dollar cost averaged witha lot of small purchases over time because not only has the alt price changed but Bitcoin price itself has also changed.
BAM! you hit the nail on the head my friend. I have no idea how to do this either, right now I kinda am flying blind because I am not really sure HOW I should be calculating these things.
I haven't even gone as far as you with exporting trade data (have not done that many trades yet), but it does not seem to be helping you with this problem.
Maybe someone on Steemit has a great way to think about this that we just have not seen yet?
Yeah that site figures it all out for you but like you said I want to know how it's being calulated. Which Bitcoin price are they using to figure this...where I got in at or where Bitcoin was at when I bought the alt?
Let me know if you come across a solution.
Don't forget that the problem doesn't go away with $$ USD because if you buy something with X amount of $$$ that might be a day which the value of the $$$ is low and another day the value is higher and so you'd get more whatever for you $$$, assuming that too is the same price haha