You can take 10 pennies (SXC) and a dime (LTC) and lay them on a table, then tell him that 10 pennies is exchangeable for one dime because the exchange rate between the penny and the dime is set at 10:1... No matter how much each coin is actually worth you know that you can get 1 dime for 10 pennies.
Then tell him that in reality each penny costs 2.41 cents in raw materials to make and that if you were to smelt the pennies down you would actually make a profit. Explain that the exchange rate is less a measure of actual value than just a factor in "how many of these SXC can I trade for 1 LTC in the current market?"
The value is an indirect relationship to the exchange rate.
Topic: Arguing about exchaning Altcoin > LTC, If its down will you get more coins (Read 511 times)
December 19, 2013, 06:15:42 AM
December 19, 2013, 05:43:34 AM
You're right, the market price (USD value) of the coins is irrelevant. If it takes less time for you to mine 1,000 of a coin with an exchange rate of at least 1/1000th of LTC then you have used your time more profitably by mining that coin.
However, you also assume more risk because the market price might not be supported by volume. If you are trying to sell more than another person is willing to buy then the actual net will shrink.
Just pay close attention to what you are doing and you can day trade profitably. Obviously though that's never a guarantee...
However, you also assume more risk because the market price might not be supported by volume. If you are trying to sell more than another person is willing to buy then the actual net will shrink.
Just pay close attention to what you are doing and you can day trade profitably. Obviously though that's never a guarantee...
Thanks you so much for telling me im right, more people please tell me!!
Yes i understand what your saying %100, Im only trying to get through this thick persons head, The Value of the Coin your exchanger for has nothing to do with how many your going to get from exchanging
For simple terms i tried to tell him if the Rate of SXC > LTC STAYS THE EXCACT SAME, And ltc moves up or down your dosent matter your going to get the SAME amount of coins there just going to be worth or less, I dont know how many times i have tried explaining, That the Sexcoin rate matters how many coins you will have an outcome of, NOT LITECOINS PRICE
I honestly dont know how to explain it to him its so simple.
Please more people reply to this thread...
December 19, 2013, 05:33:36 AM
You're right, the market price (USD value) of the coins is irrelevant. If it takes less time for you to mine 1,000 of a coin with an exchange rate of at least 1/1000th of LTC then you have used your time more profitably by mining that coin.
However, you also assume more risk because the market price might not be supported by volume. If you are trying to sell more than another person is willing to buy then the actual net will shrink.
Just pay close attention to what you are doing and you can day trade profitably. Obviously though that's never a guarantee...
However, you also assume more risk because the market price might not be supported by volume. If you are trying to sell more than another person is willing to buy then the actual net will shrink.
Just pay close attention to what you are doing and you can day trade profitably. Obviously though that's never a guarantee...
December 19, 2013, 05:26:42 AM
Please read this probably this is doing my head in.
Ok im using Sexcoin for an example https://www.cryptsy.com/markets/view/98
What he reckons how it works, Say sexcoin is worth 0.001 and he sells 1,000 coin, which is 1 litecoin, and hes trying to explain to me if Litecoin is $10, Hes saying you will get ALOT MORE coins, If the price of ltc is less and You will get ALOT LESS, Litecoin, if the price is high NOTE : This is working out with sexcoin staying at 0.001 and selling 1,000 coins.
I disagree or am i wrong, I believe, Even if Sexcoin stays at 0.001, And i sell 1,000, Im only going to get 1 LTC, Wheater the price of Litecoin is $100, or $10, IF Sexcoin stays at 0.001 im just going to get the exchange rate of 1 litecoin. NOTE : Thats only if Sexcoin stays at 0.001,
What im trying to explain with him, its the exchange rate of the sexcoin that matters, if you sell 1,000 coins at 0.001 you will still get 1 ltc, Considering if the Litecoin, is $10 or $100 your still getting 1ltc, its just the coin is worth alot more or alot less.
Please Mad This is doing my head, in most of you people probably wont even understand what im trying to say, I have a feeling he might be right and i might be wrong just someone please help me lol.
Ok im using Sexcoin for an example https://www.cryptsy.com/markets/view/98
What he reckons how it works, Say sexcoin is worth 0.001 and he sells 1,000 coin, which is 1 litecoin, and hes trying to explain to me if Litecoin is $10, Hes saying you will get ALOT MORE coins, If the price of ltc is less and You will get ALOT LESS, Litecoin, if the price is high NOTE : This is working out with sexcoin staying at 0.001 and selling 1,000 coins.
I disagree or am i wrong, I believe, Even if Sexcoin stays at 0.001, And i sell 1,000, Im only going to get 1 LTC, Wheater the price of Litecoin is $100, or $10, IF Sexcoin stays at 0.001 im just going to get the exchange rate of 1 litecoin. NOTE : Thats only if Sexcoin stays at 0.001,
What im trying to explain with him, its the exchange rate of the sexcoin that matters, if you sell 1,000 coins at 0.001 you will still get 1 ltc, Considering if the Litecoin, is $10 or $100 your still getting 1ltc, its just the coin is worth alot more or alot less.
Please Mad This is doing my head, in most of you people probably wont even understand what im trying to say, I have a feeling he might be right and i might be wrong just someone please help me lol.
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