How do you Measure Profit - page 2. | Bitcointalksearch.org

entrepmind23

sr. member

Activity: 644

Merit: 261

Quote from: shamzblueworld on December 16, 2017, 10:27:01 AM

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

It is sure confusing at first when you are in profit in terms of dollar but you are at a loss in terms of number of bitcoin. For me, I measure my profit in bitcoin because my intention is to make more bitcoin. I disregard the dollar value because I am positive that in the future it will go up. If I just think of just sticking to bitcoin and not buy any altcoin then I would have more money compared to buying an altcoin in which its bitcoin value go down so I would have lesser amount of bitcoin and in return, a lesser amount of dollar.

But then it would depend on the person how he will measure its profit because maybe his intention is to have more dollars so even if the amount of bitcoin goes down but his dollar value goes up then he is still in profit. It depends on the point of view of the person because what if he doesn't intend to trade with bitcoin but with altcoin vs. fiat so it is just right to measure the profit with the base currency he is trading and in this case it is fiat.

maaydin

full member

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I usually focus and measure my profit in terms of fiat currency because when I hit my target and want to cash out my earnings I can easily convert my coins in the market price.

Jaya912

full member

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Quote from: shamzblueworld on December 16, 2017, 10:27:01 AM

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

Well, for me i will just cash out then. If the price compare in bitcoin very low, and compare to fiat is already 5x profit so i will just cash out to fiat first then waiting for the stable price. 5x is not small, it is very big.

figmentofmyass

legendary

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Quote from: shamzblueworld on December 16, 2017, 10:27:01 AM

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

when you trade cryptocurrencies, you need to decide what your "base" currency is. that depends on your goals: are you trying to earn USD and are mainly concerned with preserving your USD capital? or are you trying to earn BTC?

i learned early on that it was only healthy for my mindset to trade BTCUSD with the intention of earning USD. i consider my BTCUSD trading account as a USD income source and my BTC cold storage as my long term portfolio.

you need to take the same approach with altcoin trading. if losing BTC is going to drive you mad, then make sure that your system is built to preserve BTC capital rather than USD capital.

clarkt

full member

Activity: 658

Merit: 100

If you find yourself in this kind of situation, there are two question you should ask yourself, Do you want to be rich in Fiat or Bitcoin? Do you want to make profit now and gain Fiat to spend! These question will determine what you do next!

Kriptex

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Merit: 100

Quote from: dothebeats on December 16, 2017, 10:36:05 AM

I focus mainly on the amount of BTC I gained and kinda disregard the net profit in USD. After all, bitcoin is what appreciates in value over time and not your USD. As for alts, that goes the same thing: net profit for BTC is what's more important. Though it is true that even if you gain more USD compared to your initial investment, you still lose some bitcoins in the process which might affect maximizing your profits.

Oh this is a btc focussed perspective. Some people prefer to make it in terms of dollars and they take EUR or USD as a reference after their trades on the markets. Some others are taking ETH as a reference.

joinfree

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Activity: 1274

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1A6nybMUHYKS6E6Z3eJFm4KpVDdev8BAJL

This is what a lot of people will never understand, they made x5 from the USD value, but they lost in coordinance with bitcoin.

If they kept holding those bitcoins instead of buying those altcoins, they were probably going to earn more.

They will never understand that.. But if you are talking about the other altcoins that are making 70% a day,
it is obvious that they are being more profitable than bitcoin, of course.

You can not compare an altcoin which does more than 400% of increase in a month, with bitcoin who makes aprox 30% in a month.

Quote from: shamzblueworld on December 16, 2017, 10:27:01 AM

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it

rysea2

full member

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Quote from: TWagner92 on December 16, 2017, 11:13:48 AM

Measuring by the percentage gain/loss would be a good way to document your trades and the overall growth of your account.

yes that's right, by doing so we can know the income that we get in every we do trading and it can be our next reference.

std1391

member

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bitcoin is love

i measure it by btc not usd , if my btc encrease i call it profit
i write my btc first of mounth and check it end of the months

TWagner92

newbie

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Measuring by the percentage gain/loss would be a good way to document your trades and the overall growth of your account.

djsugar

sr. member

Activity: 686

Merit: 262

I do all of trades through BTC. So, I tend to measure my profit in BTC because if I haven't invested my BTC in any other coin, it would have stayed in BTC and had grown in dollars. I fell BTC is the medium of trade for most of the people here. Many might buy ETH and trade. But majority is using BTC because of its easy availability and every coin has BTC pair leaving of course, etherdelta.

Chris!

legendary

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I'm a bitcoin HODLer. If I invest in something else, I've invested with my bitcoin, expecting (or hoping) that I'll end up with more bitcoin in the end, or at least that my investment is rising faster than Bitcoin. Seeing the overall fiat value is helpful for my whole portfolio, but I don't know what each coin is worth in fiat. People think litecoin and ethereum are doing great because they hit all time highs in fiat. I think they're doing the same as usual because they're nowhere close to the bitcoin value ATH.

If you have fiat you're definitely losing buying power each and every year, so why not take a risk and put it into crypto?

DaMut

sr. member

Activity: 1274

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what will i do whenever i am finding this kind of situation ?
i will set my own goal first and predicting the market movement in the next few weeks or months later.
currently i am an altcoin,if i sell it right now my investment value in usd increase a lot but significantly decrease in Bitcoin.
before doing anything i will do my own research,how long this kind of movement will last ?
if i hear something that will happen and it's a good one for Bitcoin,that mean the price will increase again in the future.
which mean if i sell it to Bitcoin right now,it has a possibility to increase it more again when the rise happen in the future.
of course i will sell it to Bitcoin right away.
but if i heard something bad will happen and the hype is overflowing,
i think the downrun will happen in upcoming days,which mean it's a good time to hold it or secure my profit in USD.

dothebeats

legendary

Activity: 3542

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Cashback 15%

I focus mainly on the amount of BTC I gained and kinda disregard the net profit in USD. After all, bitcoin is what appreciates in value over time and not your USD. As for alts, that goes the same thing: net profit for BTC is what's more important. Though it is true that even if you gain more USD compared to your initial investment, you still lose some bitcoins in the process which might affect maximizing your profits.

shamzblueworld

hero member

Activity: 714

Merit: 500

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

Topic: How do you Measure Profit - page 2. (Read 280 times)