there is no real answer to this because to me it is like asking "are you measuring your profit in USD or EUR or JPY or CNY,...?"
bitcoin is also a currency and it has the volatility like others but bigger.
with that said, it depends on what you use to invest in them. for example when you are using bitcoin then you must measure it in bitcoin and if invest with fiat then measure in fiat. if you do it any other way, you will get wrong results.
for example if you invest 1BTC in an altcoin when the price of it is 0.1BTC and bitcoin is $5000 and then that altcoin starts getting dumped down to 0.05BTC and you sell at 0.8BTC you have lost 20%. if you measure this in BTC then your stats will be correct. but if you measure it in fiat, bitcoin is no $10,000 and your 0.8BTC after loss is $8000 instead of your initial $5000. your stats will show gain but in fact you lost $2000
Topic: How should you measure profits? - page 4. (Read 382 times)
I measure profit in fiat, but I only consider it profit when I cash out.
Should we measure our investment returns in fiat or in BTC? Does it only depend on when you want to cash out in fiat?
I've been measuring my investment returns in fiat, and it was almost always going up. But when it comes to BTC it actually went down. Should we cash out our alts into bitcoin and accumulate more?
If you're interested in the topic and have similar dilemma, then I recommend you watching this video: https://www.youtube.com/watch?v=FkKYuoRg6jM
I prefer measuring profit in fiat, because this way it surely goes up more, than if I consider bitcoin. I don't use bitcoin in real life, so I guess fiat profit is more reasonable. Yet surely I try to keep in mind that sometimes I take some btc and buy an altcoin which then gives me 2x profit if counted in usd, but if I just kept that money in bitcoin, it would have given me 3x profit in usd. It is really unbelievable that one can make thorough research and invest successfully in an altcoin and smb else can buy btc and do nothing and in the end turn out to have higher profit than you did. I've been measuring my investment returns in fiat, and it was almost always going up. But when it comes to BTC it actually went down. Should we cash out our alts into bitcoin and accumulate more?
If you're interested in the topic and have similar dilemma, then I recommend you watching this video: https://www.youtube.com/watch?v=FkKYuoRg6jM
I measure my profits by $ namely usdt because usdt is the currency less agitated for and stable value. we can not measure profits by Bitcoin because it is greed. Bitcoin has grown so fast in recent times and of course it comes to BTC actually it went down.
I advocate investing in Bitcoin
I advocate investing in Bitcoin
I would measure my profit in bitcoin because even though you are up in dollar but down in bitcoin you are still at a loss because you would have more dollar if you are just holding bitcoin.
Take for example this one. You have one bitcoin with a value of $10,000 and then invested half of it in altcoin. After sometime, bitcoin would go up and as a result, some altcoin would go down. Lets say if you convert your altcoin to bitcoin then it would have a value of 0.30btc + 0.50 btc so you have a total of 0.80btc. The dollar value of bitcoin would be $15,000 per coin so $15,000*0.80btc= $12,000. If you didn't invest in altcoin then you should have $15,000 but you only have $12,000 so you have a loss of $3,000.
Take for example this one. You have one bitcoin with a value of $10,000 and then invested half of it in altcoin. After sometime, bitcoin would go up and as a result, some altcoin would go down. Lets say if you convert your altcoin to bitcoin then it would have a value of 0.30btc + 0.50 btc so you have a total of 0.80btc. The dollar value of bitcoin would be $15,000 per coin so $15,000*0.80btc= $12,000. If you didn't invest in altcoin then you should have $15,000 but you only have $12,000 so you have a loss of $3,000.
I think its better to measure it using bitcoin as oour obvious reason to buy more altcoins is "making bigger bitcoin portfolio". So I choose bitcoin. You can also use ether to measure erc20 profits.
I measure it in fiat, I think it's the only way common investors can keep track of their investments.. I always think of it in terms of, how much fiat did I initially spend to buy coins, and how much fiat would I get if I were to cash out all my coins right now. It makes it easier for me to know where I am.
Real profit makers do measure in reference to btc but common traders and investors that represent the vast majority do track in terms of usd and they are happy if their investment is up with regards to usd.
Should we measure our investment returns in fiat or in BTC? Does it only depend on when you want to cash out in fiat?
I've been measuring my investment returns in fiat, and it was almost always going up. But when it comes to BTC it actually went down. Should we cash out our alts into bitcoin and accumulate more?
If you're interested in the topic and have similar dilemma, then I recommend you watching this video: https://www.youtube.com/watch?v=FkKYuoRg6jM
I've been measuring my investment returns in fiat, and it was almost always going up. But when it comes to BTC it actually went down. Should we cash out our alts into bitcoin and accumulate more?
If you're interested in the topic and have similar dilemma, then I recommend you watching this video: https://www.youtube.com/watch?v=FkKYuoRg6jM
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