You are viewing a single comment's thread from:
RE: Why I value my crypto altcoin portfolio in BTC and ETH and you should too
Great post. I had a quick question though. Let's say today bitcoin is $2750. If I want to use the $2750 to buy 1000 LISK, wouldn't it be better to wait until tomorrow? Let's say tomorrow Bitcoin is only $2000. So I can save $750 if I wait until tomorrow. I don't like buying alts unless BTC is down. Is this thinking wrong?
It would depend.
If you have $2750 fiat, then the smart thing to do would be to enter at $2k each and get 1.375 BTC.
If you have 1 BTC then the USD value is irrelevant to your BTC/LISK trading pair and you need to focus on a good entry relative to the pair you're trading. Current price is about 72k sats (.00072 BTC each), so if you'd entered at that price with your full BTC, you'd get about 1,389 LISK. You wait a bit and LISK rises in value relative to BTC, say 5%. So you "capitalize" on this gain by moving back to BTC, but now you have 1.05 BTC.
You see that LISK has moved back down, so you buy back in again, for simplicity sake, we'll say its back to 72k sats, so this time your 1.05 BTC buys 1458 LISk. You wait again and it raises 5% and you go back to BTC again, this time you have 1.1025 BTC.
So you'd have gained crypto, no matter how you look at it
1.1025BTC >1 BTC
During this time however, BTC could be up down sideways to the moon, whatever. That doesn't matter until you're cashing out.
If you're not gaining BTC, you shouldn't trade alts, because it's more advantageous to stay in BTC if you're not focused on gaining BTC value.
Havent had enough coffee yet, lol. You answered thejavascripts question with: "It would depend." I was hoping for a yes, no or it doesn't matter!! lol Let me rephrase his question: As long as he/she/we have the underlying belief in BTC (or ETH), then whether we spend USD to buy BTC today when BTC is $2750 or tomorrow at $2000 (of course the "tomorrow" could have meant that BTC was UP $750 instead of down $750) doesnt really matter...... because LISK will be up or down SATS wise based on BTC. ~~~~~~ separate thought(s): Today BTC is currently about $7500 - if I buy some BTC today and purchase an ALT today with that BTC, and 5 weeks from now BTC is around $5500, and nothing fundamentally has changed with that ALT, would you expect the trade to be in a PROFIT or LOSS state at that juncture?
by the way, thank you so much for what yo offer to the community on the cct community on fb; I'm quite the beginner here on Steemit, but appreciate what you provide to us cryptoKrazies. Thank you!