Holding btc vs altcoins

With this technique, there appears a group of cryptographic signatures including at least one real participant, but since they all appear valid, the real one cannot be isolated. The principal benefits of Bitcoin here are network effect and proven security. For supporters of this digital currency, ADA offers all of the benefits of Ethereum, as well as many others.

Bitcoin investment

Article Overview: This article provides a comparison of the performance of Bitcoin vs the top 10 altcoins a year ago. Which fared better? The surge of new money entering the market is a altcoijs to the rising popularity of Cryptocurrencies. Aside from Bitcoin and Ethereumthere are more than 1, coins and tokens to choose. Choosing which coin would be the most profitable in the short or long term can be extremely hard. The main question is, should you use your Bitcoin to buy other altcoins in the hopes of earning a greater return on your capital? Or should you just altcoinw Bitcoin since it will surpass every altcoin in the future?

I won’t be trading or charting any alts vs USD and the reason is simple:. And I will continue to trade the altcoins that are doing good against BTC. Please leave your comments below and feel free to correct me if I am wrong, but so far I find this to be the best logic. Downvoting a post can decrease pending rewards and make it less visible. Common reasons:. That is exactly why I made this post.

I won’t be trading or charting any alts vs USD and the reason is simple:. And I will continue to trade the altcoins that are doing good against BTC. Please leave your comments below and feel free to correct me if I am wrong, but so far I find this to be the best logic.

Downvoting a post can decrease pending rewards and make it less visible. Common reasons:. That is exactly why I made this post. I don’t know why people still wants to trade alts vs usd Good stuff good for me another ideas as part of my learning process keep sharing useful idea, Stay awesome people. Thanks dobe4ever. Unless I expect a BTC pullback soon? How often does it make you more money? I personally hate how everyone trades in BTC pairs.

I trade to earn more USD. I don’t see why trading against BTC is the goal, unless you have fully removed yourself from the fiat system and pegged yourself solely to BTC. If BTC tanks and you have a sell order in Satoshis on an altcoin, the order could be triggered while the USD price is break-even or even at a loss! Assessing your trades against BTC is not an accurate representation of true trading profitability. Thank you! I was thinking that there was something wrong with me. I do not understand their point.

It adds a lot of volatility to trade against a coin such as Bitcoin. Great article! Using USDT pairs on bitfinex is much easier. At the end of the day, if i want an alt coin that is not on bitfinex, i buy it on binance and hodl it. Besides, look at the trends, most Alt coins follow right after BTC. I disagree that it’s completely holding btc vs altcoins.

One should use the trading pairs with the most volume, as they present the most accurate price data better yet a combo of high volume pairs, e.

If BTC is going up against any other alt then it’s always better to not trade that alt and just hold bitcoin, even if that alt is going up against any other fiat, because it means BTC is going up even more than the alt against that fiat since everything is measured against the fiat US Dollar Tether.

Tether is 1 to 1 with USD and since it is an Alt coin you do not have to pay capital gains yet since technically you did not trade an asset into US currency. I would consult your tax attorney of course but that is how I have come to understand it. Usd is our fiat currency known as the dollar.

It is a pegged currency that keeps the value of itself equal to the value of the American dollar. At the end of the day, it all depends on how you are measuring your «success» in trading.

Are you looking to get rich and be able to go buy all the things you want? Then all you really care about are the USD pairs Why would you care how something is trading against the Holding btc vs altcoins I for one am a speculator and looking only to make some USD so I can go and buy normal things in my everyday life. I was always weary and curious about this BC I never know what to do in regards to taking my profits from My Alts that are going up when BtC is going.

Thank you so much for the helpful insight. I disagree that we should be trading against bitcoin and not a fiat USD currency. Would you trade Microsoft based on the price of Apple? It makes no sense, especially since the value of Bitcoin is highly volatile. This in turn tells us nothing about the true value of either currencies.

It only tells us the value of them in comparison to each. In my opinion, in order for any of these currencies to become mainstream used as a daily currency the exchanges must be based on fiat currencies.

Should the value of some joke alt-coin soar to millions of dollars in market cap simply because bitcoin went to the moon? I don’t think so and this is a problem that is getting in the way of the long term viability of cryptocurrency in general. My two doges! I was researching this topic and came up with some findings.

All good, but the story doesn’t end. Eventually our profitability would always be judged by USD values until the day we won’t need to cash out any. That would give me 1 BTC. I decide to sell them and get 0. That gives me 10ETH. That gives me USD. Surprise, surprise I gained. This is what I find so confusing about trading with BTC. Did I miss something? Or am I just reading your last part wrong? No, you’re right. The bottomline of my long explanation is that it won’t matter. When valued against USD you’ll always end up with 2x profit.

So it would make logical sense to not waste all the transfer and trade effort. People trade Alts vs BTC on the hope that btc always goes high and in the example you explained, when btc tanks, it will eventually go high. This comment has contradicted your theory and you have no response? It would be interesting and useful for everyone that has read your article and commented here to see how you defend your argument.

Alright, We should assume the the market is going to go up, right? Otherwise we wouldn’t be in it, yes? Because the BTC price and whole crypto market cap went up as a. I enjoyed your post. You are so so so right xineohp. I’m sorry I know I’m late to this party, but it’s what google gave me. Trading against an unstable currency BTC is suicide If BTC drops 2k in 24hrs, and you see This is so much more important if you’re trend trading. In fact, if you try to swing trade without normalization, you could find yourself way way up a creek.

I was thinking this from the. Privacy Policy Terms of Service. I won’t be trading or charting any alts vs USD and the reason is simple: Let’s take Ethereum as an example. Any way you look at it you will always make bigger profits if you trade against BTC. Makes sense? Common reasons: Disagreement on rewards Fraud or plagiarism Hate speech or trolling Miscategorized content or spam. Authors get paid when people like you upvote their post.

Sign up. But what if BTC is unstable or falling like a stone? Thanks for the post! Great counter argument to this! Thanks for posting. Could you guys tell me what does USDT stand for? So the story goes on. But is it really? BTC has fallen to from originally. What would have happened if I decided to save my exchange fees and trade with fiat? Hope this helps.

Please feel free to punch holes in my theory. This is correct. USDT is an effective holding ground while waiting out volatility.

Bitcoin Charts

Thus, like https, Zcash claims to provide extra security or privacy where all transactions are recorded and published on a blockchain, but details such as the sender, recipient, and amount remain private. Is It the Same as Ethereum? Investing Cryptocurrency. Bitcoin Definition Bitcoin is a digital or virtual currency created in that uses peer-to-peer technology to facilitate instant payments. Bitcoin Basics.