Question... when you are trading coins between bitcoin or ethereum as their price fluctuates does that have any affect on the coin you are trading? For example you wanted to sell NEO at .143700 but if the price of ethereum goes up or down that .143700 could mean $160 NEO or a $170 NEO. Is that correct or do I have that all wrong?
You are viewing a single comment's thread from:
That is correct. There is a mindset shift that has to take place, you have to see ethereum as the currency your trying to boost versus trying to boost the USD value, irrespective of ETH's fluctuations. Otherwise, in your example, you would simply not have bought any NEO and had more USD just from hodling ETH.
Additionally in your example, If ETH price significantly drops, your buy order might go through despite NEO price not changing. But that should not matter if you still have faith in ETH and believe its USD will bounce back.
Great point about the mindset. Thanks!
So what you’re saying is it is best to trade for more ETH even if the price of the coin is the same or possibly lower as when you bought it rather than trading the coin at a higher price?
Yes, as long as the # of ETH you hold is greater than the oringinal.
Gotcha! Thank you for clearing that up for me. Really appreciate it!!
I actually had the same question. Thank you guys for the responses.
This is what it’s all about. Helping each other out and making money together! 👍🏻
Good answer. Also need to say that if ETH price goes down during NEO buy/sell process you end up owning more ETH anyway. It's the same as selling ETH when it's high and buying when it drops. It always preserves the value.
Yes, this is what I implied but it is important ot mention.
And if that’s the case wouldn’t you want to watch the price of NEO instead of watching the .143700?
You're right, that's why you should trade based on Ethereum due to its (more) stable value.
I found easier to trade on Bitcoin for some reason
Did you suffer from the high transaction fees? I usually trade in ETH since remember when my friend traded in BTC the fees were about 2 times higher than ETH
Think of it as exchanging USD for the Euro. Each has their own value and both fluctuate as well.
HOLD gang
Totally correct on your part. I always look at the USD value of the instrument used and the USD value of the coin purchased at time of buy and again at time of sell. Easiest way for me to make sure I never get burned on converting back to ETH or BTC.