Quote:
Originally Posted by PaulyJames200x
So basically they are telling me...
But you are telling me its possible to lose money if you invested in a coin like lisk where you bought 1000 shares at 5 dollars or lets just say 0.0007 btc. Then when the price hits 6 dollars... lets just say 6 dollars is now 0.00065 btc. Then you sell it for btc. So here, moneywise you should be up 1000 dollars minus fees. But you get back less btc than you started with.
So here, this is NOT what you want to do?
However, you do make around 1k profit minus fees though right since even though you receive less btc than you invested even though the price went up, well that 0.00065 btc is worth more than the 0.0007 btc that you initially used to buy lisk?
So in this example, you can't lock in any profits and send money to your bank account to lock in the 1k minus trading fees? Because i thought you would transfer whatever btc amount is around 1k to lock in your profits? Or it does not work this way?
Yes this concept is confusing. Because here... when you invest in altcoins and it goes up... you need bitcoin to either stay at same price or go lower in order for you to get more bitcoin right? However, what if you already are holding bitcoin that you don't touch etc and want to invest in altcoins. Because i obviously do not want bitcoin to go down because i have a lot more money in bitcoin than investing in altcoin.
So do daytraders either daytrade bitcoin/eth/litecoin because they can deal with usd only? Or they only trade altcoins and don't own bitcoin because if bitcoin goes up, then they lose bitcoin if altcoins go up etc assuming bitcoin goes up enough?
Would like if any daytraders can explain this to me. I do understand how if a coin goes up from 5 to 6 dollars and you sell it, you get less btc than you originally used to buy lisk. But even though you have less btc than you started with... well that less btc is worth more btc than you started with right? Now the other thing is what happens if btc price goes down etc? That means btc could go down and altcoin could go down... then you dont lose much btc? But if btc goes down and altcoin go up, not only do you get more profit, you gain more btc? However, the issue is most daytraders do still own btc that they hold right? But right now im looking at profits that you can lock in to cash to your bank account etc. And the replies i got back seem to say dont' look at usd price at all. I could understand this a bit if you are planning to just keep holding btc... but if you are doing this for daytrading profits, does you getting less btc because btc went up matter or not? I thought it did not unless you just plan to hold btc etc.
I asked my question on another forum. The guy who replied back is a very knowledgeable poster and has been daytrading for many years. He mentions the most important thing in my example is USD profit. He mentions when you buy an altcoin or any coin, the goal is to sell it at higher price than you bought it at. Thus if you buy lisk at 5 dollars and sell it at 6 dollars, you have profit... and btc going up or down is does not affect it... besides if you might have made more or made less had you hold the btc instead of using it to buy the altcoin.
So to the posters here... when you trade altcoin... thus you need btc first... im talking about those coins that cannot be traded against usd or usdt... is your primary purpose to make usd profit? Or to get more btc than you started with? Thus you buy lisk at 5 dollars and bought 1000 shares. BTC is at 5000 so you spent 1 btc to buy it. Lisk goes to 10 dollars and you sell it so you make 5k usd profit less fees. But btc would have went from 5k to 15k. So btc went up 3x as oppose to lisk at 2x. Here when you sell lisk, you would get back less than 1 btc... thus less than 1 btc than you started with. In this situation, is this trade profitable or not profitable to you? Because you made 5k usd profit less fees here... but you do get less btc. On the other forum... they tell me they count this as a loss because you are losing btc. I had mentioned to that guy that people say dont look at price at usd... look at price in btc... thus buy lisk at 0.0007 btc... sell it higher than 0.0007 btc. The knowledgeable guy says usd profit is the most important thing here. So anyone here can comment on this?
