Hope you are having a great day. Over here in Calgary we are losing the battle for Spring with the snow constantly gaining the upper hand. The weather sort of corresponds with the gloom in the cryptocurrency market this period. We all hear buy the dip but what no says is which dip to buy or how to track your portfolio so you recognize a dip
Every cryptocurrency is pegged to #Bitcoin (BTC) or #Ethererum (ETH) and other tokens of other platforms like WAVES, BitShare and possibly NEM. Bitcoin is however priced to the US dollar (USD). As Bitcoin is the currency used to purchase all cryptos it then makes sense to buy a dip to the bitcoin price and not to the dollar price. Looking at the current market it may appear like everything has dipped in the last few weeks. As an investor/trader I would recommend you have a record of the Bitcoin prices you paid for each coin as this is the only value that will determine when a did is really a dip for you or when its time to take a real profit.
Lets take this #smartcash illustration
- Dec 24th 2017 Bitcoin Price 14625 SmartCash 0.00001187 USD Price $0.192288
- Mar 16th 2018 Bitcoin Price 8300 SmartCash 0.00002350 USD Price $0.18
The numbers above are for are from a real transaction of 1000 smarts given to my son. Todays price is taken from Coin Market Cap. If you bought some smarts at 1187 stats but failed to notice as you worked with the USD value todays value would appear to be a dip when compared to the US dollar value dollars may look like a great buying opportunity as its now $0.18. You may even believe you made a huge loss from you deal just before Christmas. This is not the case. If you took the same amount of Bitcoins to buy the same units of smart, you will be shocked to find your bitcoins would not buy you as many units as previously as the smarts have actually increased in value with each smart gaining over 1000 stats. The numbers above look like a dip but are not. Smartcash has risen from 1187 statoshi to 2350.
Another illustration to consider is :
- Mar 16th 2018 Bitcoin Price 8300 SmartCash 0.00002350 USD Price $0.18
- Lets Speculate - Bitcoin Price 15000 SmartCash 0.00002200 USD Price $0.30
If you bought smartcash at 0.00002350 with a dollar value of $0.18 and Bitcoin goes up and Smartcash is now 0.00002200 stats with a dollar value of $0.30 which appears to be a profit. It really is not, as to cash in the "profits" you would be selling your smart at a lower price of 2200 satoshi a loss of 150 satoshi on each smart.
What is important to note is :
TRACK YOUR CRYPTOS IN BITCOIN
If for some reason you purchased your smarts using USDT as you can on HitBTC then you may want to track it in USDT if you plan to sell it for USDT. If for any reason you plan to increase your Bitcoin holdings then it would be worth your while to also track the corresponding BTC price at the time of purchase.
In the cause of the day the price changes are like a yoyo - it going up and down in changing degrees. One way to not lose sleep over this is to use a spreadsheet or an Android/IOS app to stay on top of things. I prefer using an app because it is easier for me to use.
I will write about two apps I use and telling you what I like best about each.
This application can be downloaded from the Google Play Store and the IOS AppStore/iTunes
The Delta application allows you enter a transaction specifying the exchange, time and date of transaction and it retrieves the correct price for you, you also have the ability to change the price if its not correct. Your holding of SmartCash is tracked using todays value for a general picture of profit and loss. You are however able to look at each holding and see which of your transactions actually is in profit or loss.
The best part is profit shown in Delta is not based on average prices of Smartcash but specific prices at the exchanges linked to your transactions so if you need to cash in it is a price you can actually get. I experienced the importance of this some time ago. Last summer I tried to mine some DASH when it was $280 per coin. I decided to cash out when DASH was at $700 dollar. This was the value show by another app I used at the time. CoinPortfolio. When I actually tried to sell I found none of the exchanges I used had that price and the price on the exchanges was actually $620. If I had the Delta app I would be shown the actual price on Kraken an exchange I had used previously for a DASH transaction. DELTA allows you also create a watchlist. I do not always have Bitcoins but I like to watch the price of that and a few project I hear about. The watchlist allows me watch prices separate from my transaction like. DELTA app would send you notifications of significant price changes on exchanges for your related coins in portfolio and your watchlist. There is a PRO version with more options but the free one meets my needs for now, and does it really well. I may upgrade to the PRO version primarily to support the team behind this app.
TRACK YOUR CRYPTO WITH AN APP OR SPREADSHEET
Another app I use is CoinPortfolio this is also on the Google Play Store and the IOS AppStore/iTunes. What I like about this application is the fact you can track your transactions with as much or as little details you like. You may wonder why is this important and I would remind you that when you earn Smartrewards, Noderewards or mine Smartcash or any cryptocurrency you want a way to record your coins without being forced by an application to tie it to an exchange or forced values. CoinPortfolio excels at allowing user enter as much or as little to create a transaction. Coin Portfolio will track your total holding using an average derived from Coin Market Caps. With this application you are not able to create a separate watchlist, however you can enter a zero value for any coin to include it in your transaction list. Users are also able to set alerts for all holdings including those with zero balances.
Each of these applications has its own niche. For a glance at my long term holdings I would use the Coin Portfolio. To find out how a specific coin is doing and actual purchase price vs current market price or to make any trading decisions (when and where to take profit) I use the DELTA app. I previously tried to use Block Folio and found it did not allow me enter records in a way suitable for mined/ staked coins. Both can be used to set alerts by downward or upwards movements on holdings. Using any of these applications would help you spot the right dip for you and the really profit if you must cash out.
I hope this helps you see things from another perspective and also keeps you busy updating your records while it a bit quite. Let me know what you think and how you stay on top of things. I have used #smartcash in all my examples because its one of my favourite holdings. This however applies to all coins as the rules are the same.
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My Smart Address: SZuD6sbjBwToeYcuU6Td4MAqU5H5SWi9MJ
ETH Address: 0x0dB0f86db751291d52467CA97E75dd03FF659F03
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Please Read My Other Articles
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SmartCash Coming To A Shop Near You
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It's Raining Smartcash
When the going Gets Tough
How to Invest in SmartCash part 1 -for Non Geeks
How to Invest in SmartCash part 2 - for Non Geeks
Introduce your Teens to smartCash
SmartCash Coin of the Future