Calculating how many Altcoins can be bought for $20

Lordhermes

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Quote from: Jetheat on January 06, 2021, 07:15:34 PM

Let's say I wanna invest in DOTBTC.
The price is 0.00027360.

I wanna invest $20.

How do I work out the amount of coin I should be buying given the current price?

JH

Convert $20 to btc
$20 = 0.000518BTC @ current price of $39,600
Now, DOT/BTC @ price of 0.00027360
   0.000518
   0.0002735 = 1.8932 DOT ( Amount of coin to buy)

To attain $100 gain, let the new price be N
   $100 = 0.002525BTC

   1.8932 X N = 0.002525BTC
   N = 0.002525
   1.8932. = 0.00133 ( New price to get $100 gain)

Conclusion: DOT/BTC price will rise from 0.0002736 to 0.00133 to get $100 gain, by simply using $20 to get 1.8932 quantity of DOT.

RapTarX

hero member

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You are lacking of basic maths.
You want to purchase DOT for instance. Say, DOT current price is 0.00026 BTC. You want to invest $20 worth of crypto, which is 0.00052 ag the moment.
How much are you getting? 2, isn’t it?
So, you want to make 10% on your portfolio, your portfolio value is 0.026 BTC. So you want 0.0026 profit in 2 DOT?
Cost+Profit= 0.00052+0.0026 = 0.00312 BTC which you have to gain from 2 DOT. Wait all the way BTC reach to 0.00156 BTC each.
Or simply trade with USDT version.

Csmiami

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Quote from: Jetheat on January 07, 2021, 01:39:30 PM

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Quote from: Csmiami on January 07, 2021, 01:37:12 PM

If you have 1000$ and want to invest a 2%; you take the price of the altcoin in dolars, and multiply it by the amount you are investing (20$). You then want to sell when the price of the coins you bought is 100$, so to know that, bought coin amount/100. If you are doing a BTC-Altcoin par, the same logic applies.

Just change the $ sign for a BTC sign.

Jetheat

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I was thinking of just using BTC to calculate and forgetting all about Dollar value.

How would I do it on BTC alone?

JH

Csmiami

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Quote from: Jetheat on January 07, 2021, 01:25:59 PM

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If you are trading on dolars, yes. You first calculate how much of that altcoin you can buy with the 2% of your capital and then calculate what price that amount of coins would need to have in order to be the 10% you wish.

If you are talking BTC, you should just do the same math; 2% at the price you can buy at that moment, and the price for said amount for it to reach your desired 10%

If you are talking in USD and trading BTC based on its value, you are going to loose money because of the volatility. 1 currency exchange might be risky, 2 at the same time is even riskier.

Putting this in numbers:

If you have 1000$ and want to invest a 2%; you take the price of the altcoin in dolars, and multiply it by the amount you are investing (20$). You then want to sell when the price of the coins you bought is 100$, so to know that, bought coin amount/100. If you are doing a BTC-Altcoin par, the same logic applies.

If you have btc and want to invest a % but based on its usd value, you first have to convert the BTC into USD, do the above math and hope the BTC price doesn't change much

Jetheat

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Ok, I'd like to pose this another way.

I want to risk 2% of my account and I want to make 10% of my account on every trade that I do.

I want to risk 2% of my account, not by setting a stop loss, but rather entering the trade with only 2% of my entire capital. That way, if it goes to zero or the coin is delisted, I only lose 2% of my account.

At the same time, I want to exit when that trade climbs to a point where it equals 10% of my account.

So if I have 0.08677216 BTC in my trading account, and I want to risk 2% of that (0.0017 BTC), I know I can buy 0.0017 BTC worth of altcoin.
If I want to exit with 10% of my account, I know that 10% of 0.08677216 BTC is 0.0086.

How do I convert that 0.0086 into an altcoin price, so I know when to exit?
Do I simply divide the 0.0086 by the current altcoin price?

If so, it would be 0.0086 / 0.00027360 = 31.43.
What does that 31.43 mean? Is that the future price I should exit?

Maths is not my strong subject.

Appreciate the help,

JH

Darker45

legendary

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Your question is a bit confusing.

In your example, you have $1,000 in your trading account and you want to risk only $20 in a trade. What do you exactly mean? And if you want to risk only $20 on that trade alone with a target profit of $100, you better do it like a pro. That's 5x growth. I don't think it is easy. Even the good traders I used to know are now resorting to plain hodling.

As to your other question, the amount of altcoins you will buy would wholly depend on the amount of USD you wish to spend.

Finally, there is no need to make a complicated computation when to exit. You take a look at how much value your coins have and if it has already increased by $100, then sell it. It's as simple as that. After all, you are looking at USD as your basis.

Maus0728

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Quote from: Jetheat on January 06, 2021, 07:06:34 PM

Then, how do I calculate where I need to exit to make $100?

I think this relates to the risk/reward ratio. Let's say for example that if you risk 20USD and you are aiming to profit at 100USD -- you need sell at around 0.00028755 sats in order to profit 100USD with respect to your risk assuming that you bought DOT when its price value is still at 0.00027360 sats. Am I correct?

Csmiami

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Quote from: jackg on January 06, 2021, 09:00:37 PM

I thought op quoted the price in btc?

And that's why teachers insisted on always writing the units of what you were using....

Making that little change, yes, 1.975 that is close enough to what coingecko says

jackg

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https://bit.ly/387FXHi lightning theory

My answer is at the bottom

Quote from: Csmiami on January 06, 2021, 07:26:35 PM

~snip~

I thought op quoted the price in btc?

Quote from: Jetheat on January 06, 2021, 07:15:34 PM

Let's say I wanna invest in DOTBTC.
The price is 0.00027360.

I wanna invest $20.

How do I work out the amount of coin I should be buying given the current price?

JH

You'd do a calc of
$ to invest/(btc price x price of coin).

For example: $20/(37000x 0.00027360)=1.975 coins (in dot)
I just checked binance and their usdt market is trading at the value I got for each dot coin (or close enough considering).

Csmiami

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I'm sometimes known as "miniadmin"

Quote from: Jetheat on January 06, 2021, 07:15:34 PM

How do I work out the amount of coin I should be buying given the current price?

You make the following math operation:

USD amount * 1 coin/coin USD value = Altcoin amount

In your case; 20USD * 1 coin/0.00027360USD = 73.099,41520467836 coin units

I'm sorry I screwed up first time, it's 2 am

Jetheat

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Let's say I wanna invest in DOTBTC.
The price is 0.00027360.

I wanna invest $20.

How do I work out the amount of coin I should be buying given the current price?

JH

jackg

copper member

Activity: 2856

Merit: 3071

https://bit.ly/387FXHi lightning theory

If you're asking what $1000/$20 I'd then I'd seriously suggest taking out a book on trading or something. If you don't have a good strategy or know how to make one youll be quite likely to make a loss..

Anyway $1000 in total, putting $20 on each coin gives 50 coins if that's what you were asking.
$100 on each coin would be selling them at 5x of their current value.

Jetheat

jr. member

Activity: 85

Merit: 7

I'm just getting back into Crypto after a long time, during which I've forgotten a lot of stuff.

If I have $1000 in my trading account and I want to risk $20 on a trade (with no stop) and plan to make $100 on that trade, how do I figure out the amount of altcoins I should buy?

Then, how do I calculate where I need to exit to make $100?

Appreciate the calculation help,

JH

Topic: Calculating how many Altcoins can be bought for $20 (Read 176 times)