Beginner's Guide to CryptoCurrency: What's a SAT?

If you are just tuning in and consider yourself a Beginner in the Crypto World, I highly recommend the previous segment of my Beginner's Guide in which we talk about Transferring and Confirmations!
https://steemit.com/cryptocurrency/@ridge-sin/beginner-s-guide-to-cryptocurrency-transferring-and-confirmations

In this segment, we will discuss what SATs are, otherwise known as Satoshis, and why it's becoming more popular for Crypto Investors to prioritize the Satoshi value of their portfolio over the Fiat Currency value.

As you explore deeper into the Crypto World, it doesn't take long before you find that Fiat Currency prices are often replaced by a new unit that utilizes a full 8 decibels. This new 8 decibel unit is Bitcoin, or when broken down into fractions, better known as Satoshis or SATs! Named after Bitcoin Creator Satoshi Nakamoto , a SAT operates similarly to the US Cent, representing fractions of a Bitcoin and allowing us to trade the smallest of price in Bitcoin as opposed to being restricted to using the whole unit, like a piece of Gold. However unlike the US Cent's 2 decibel system, the Bitcoin SAT has a total of 8 decibels, allowing for even more flexibility in the measurement of price.

In other words:
1 Bitcoin = 100,000,000 Satoshis

A majority of Crypto Currencies are sold on Exchanges that do not allow for Fiat Currency Pairings, otherwise known as Crypto-Only Exchanges. When this is the case, you must use a separate exchange to purchase Bitcoin and transfer it to the Crypto-Only Exchange in order to begin Trading on that platform. This means that Bitcoin is required to purchase a majority of other Crypto Currencies and that a majority of Alt-Coins are essentially worth Bitcoin instead of Fiat Currency. Because of this, Bitcoin's status in the market often effects the Fiat Currency price of many other coins, that is to say: If Bitcoin's price drops, other coins will drop, and vice versa.

This can make trading very confusing, mainly because it is natural to prioritize the Fiat Currency value of your portfolio, while you're actually trading in a space in which the community and platforms collectively view Bitcoin as the primary Currency. Attempting to constantly prioritize your assets with two separate sets of Currencies is incredibly difficult, as doing so effectively would require constantly tracking the price of the Fiat Currency, Bitcoin, as well as whichever Crypto Currency you decide to purchase with the Bitcoin. Because of the increased complication, it has become popular for the Crypto Community to prioritize just the Bitcoin Value of their portfolio.

But if the goal is to be able to eventually cash out of your Crypto Investments and profit in your respective Fiat Currency, why would you want to prioritize the Bitcoin value of your portfolio?
This ultimately comes down to the currency reference, strategies and goals of each individual investor.
A simple example of currency reference would be if you moved from The US to Europe and began selling goods to European citizens. You wouldn't constantly change the EUR price of your product based on the current price of USD, you would simply aim to profit in EUR because your currency reference changed. Many in the Crypto World simply prioritize Bitcoin as their reference instead of Fiat Currency.
However there are also investors who aim to utilize a strategy in which they accumulate Bitcoin value with faith that Bitcoin's price will continue to grow, for the goal of exchanging their Bitcoin for Fiat Currency once that growth has been realized.
In addition, many Crypto Currencies have use cases that are becoming more and more adopted around the world. This essentially means that for many of these coins or tokens, it could easily become the goal to simply use the Crypto Currency for it's intended use case, instead of eventually cashing out into a Fiat Currency.

Many beginners may find converting to Satoshis to be difficult at first, however give yourself time to adjust to a new system and decide for yourself what currency reference and investing strategy work best for accomplishing your personal goals!

If you enjoyed this edition of my Beginner's Guide to CryptoCurrency, stay tuned for the next segment in which we'll go over the basics of how to read Candle Charts!