Since this is trading subforum, I know that when you want to buy an altcoin, let say iota or lisk for example, you have to buy it with btc as oppose to usd or usdt as many altcoins, you cannot pair them with usd or usdt.
So for example, let say you buy $1000 worth of btc at $1000. So you have 1 btc. There is also a fee for buying it so say you only get $997.50 worth of btc. Now let say you want to buy lisk and say its $1 to make it simple. You now spend all that btc which is like 0.9975 btc and buy lisk. You will get around 997.5 - 0.25% fees = $995 worth of lisk so 995 lisk.
But the issue is when you buy btc at $1000, you have to send the btc to another exchange usually to buy the altcoin. So first you have to pay that 10 cent - 1 dollar sending fee. Then after this, you sell btc for lisk. Obviously by the time you make the transaction to buy lisk with btc... its almost impossible for btc to be around the exact price where you bought it which is $1000 btc price. Now let say btc price when you do this is $998.
So here, you are
Buying btc at 1000 dollar price
Selling btc at 998 dollar price
And thus incur a capital loss right?
Thus you never put buy or sell lisk until you sell lisk correct?
Now here is the thing. Let say you buy btc and sell btc at same exact price which is possible. Like during those minute span its the same price. So in these situations, there is no gain and no loss? Or there is always loss because of the sending fee? What about the transaction fee? Because say you bought btc at 1k and sold it at 1k to get lisk... well you are never going to get 1000 lisk, you will probably get 995 lisk more or less right?
So if someone buys altcoins with btc and only does this when they buy btc... meaning... the only time i buy altcoin is when i buy btc right now... then sell it immediately for altcoin, isn't this person going to incur capital losses almost everytime it seems as oppose to capital gains?
Topic: Buying Altcoin with BTC, Capital Loss Every Single Time? (Read 110 times)
Jump to: