Altcoin is backed up by Bitcoin?

[PinguSpy]

It's bit confused here. I'm new when it comes to currency trading aka noob.

For example.

- 1 BTC = $100.00
- 1 NEO = 0.01 BTC
- 1 NEO = $1.00

If the demand for the NEO keep rising, the price would increase.
For example 1 NEO = $2.00.
That mean, 1 NEO = 0.02 BTC.

Suddenly, the price of BTC are increasing too. Example 1 BTC = $200.00, so that the price of NEO will increase too right? Meaning 1 NEO = 0.04 BTC / $4.00 right?

So...

1. What will happen if the NEO demand kept reducing, while the BTC demand kept rising?
2. What will happen if the BTC demand kept reducing, while the NEO demand kept rising?
3. What will happen if the NEO demand kept stable, while the BTC demand kept rising?
4. What will happen if the BTC demand kept stable, while the NEO demand kept rising?

From this number 1,2,3,4 based on the question above, who will gave the most higher % of the profits?

This is what happened when I tried to trade using Bittrex. Since they only accept deposit using Bitcoin.

So every time you want to do the trade, you'll need to pair with 3 different type of currencies at the same time.

USD/BTC/NEO

 

[Chiefjop]

Suddenly, the price of BTC are increasing. Example 1 BTC = $200.00, so that the price of NEO will increase too right?

Uh no? It's supply and demand just like any other currency. If the price of BTC is increasing you'll need more dollars/NEO to buy it.

Crypto seems to move a bit in sync but it's definitely not tight to each other and you can have BTC rising while NEO is going down at the same moment.

 

[Fragmaster]

It's very simple my friend.
When you have a triangle of currencies, and one pair changes, someone makes profit changing second and third currency to compensate, keeping them "synced". It's usually one of 1000 bots on bittrex.
About specific scenario, i don't really understand it. Most profit makes holding currency that is in increased demand. If you are long term "believer" in BTC, always make trade that will net you more BTC, regardless of temporary USD value.

 

[deal with it]

I'm not answering here. I want to predict someone will use correlation and causation in same reply. let's see

 

[deal with it]

Can bittrex affect prices, for them the btc value is just a number. Curious..thought of it right now

 

[deal with it]

No they won't as it will result in unbalanced supply of coins within the system.

 

[mickyfu]

This is what I wanted to know. If Neo goes up and Bitcoin goes down, am I actually making money?

 

[PinguSpy]

Thanks for the reply


Because sometime, when I see the chart, bid(buy) vs ask(selling).

The amount of selling book are more than the buying book. But since the price of BTC kept increasing, it din't effect much.

 

[Fragmaster]

This is what I wanted to know. If Neo goes up and Bitcoin goes down, am I actually making money?

Nothing is earned unless you close your trade, and end up with more "longterm" coins than you had. If Neo goes up, and Bitcoin goes down, your USD value could be same temporary. If you sell to have more BTC, and BTC bounces back in price, you earn.

If you believe BTC will rise in time (to 5 or 10k) and your long term strategy is to hold BTC , you should completely ignore USD values.
Some people have NEO longterm plans, and they close trades that increase total amount of NEO, regardless of USD value.

Some of mentioned scenarios ( BTC up, NEO down) are common. People are jumping off NEO train to hold BTC while its raising, to hop back in when BTC uptrend ends. They assume NEO will go down relative to BTC, and end up with more NEO.

 

[boleklolek]

Nothing is earned unless you close your trade, and end up with more "longterm" coins than you had. If Neo goes up, and Bitcoin goes down, your USD value could be same temporary. If you sell to have more BTC, and BTC bounces back in price, you earn.

If you believe BTC will rise in time (to 5 or 10k) and your long term strategy is to hold BTC , you should completely ignore USD values.
Some people have NEO longterm plans, and they close trades that make increase total amount of NEO, regardless of USD value.

Some of mentioned scenarios ( BTC up, NEO down) are common. People are jumping off NEO train to hold BTC while its raising, to hop back in when BTC uptrend ends. They assume NEO will go down relative to BTC, and end up with more NEO.

This last sentence is very true, it all comes to the point whether you want;

1) more btc?
2) more altcoin "X"
3) more USD

Your point SHOULD be to ALWAYS end up with as much BTC as possible thats the whole point or if you are here for a short term gain well.. then sell ur btc for US ShitD and gtfo lol

 

[chakde]

When trading using BTC on Bittrex you can see the $ value of your purchase/sell. You can make a note of it when you are buying and selling. This will help you figure out your profit/loss should you then immediately convert to USDT.

If you sell in BTC/ETH then your wallet value will be consistently changing according to the current rates.
For example if you buy a coin at 0.5BTC ($2000), sell at 1BTC ($4000), your profit is 100% and shall remain 100% if you convert to USDT,
If you keep as BTC, as the value of BTC drops/increases your profits will fluctuate

 

[SpaceCowboy1]

This is what happened when I tried to trade using Bittrex. Since they only accept deposit using Bitcoin.

That is not true, there are a lot of options available for deposit. I made a SC deposit yesterday.

 

[Bigstar20]

Yep, as others have stated.. the goal is to end up with more Bitcoin and ignore USD. The fastest way to end up with more bitcoins is by "flipping" other coins.

 

[bartosimpsonio]

This is what I wanted to know. If Neo goes up and Bitcoin goes down, am I actually making money?

Same question exists with FOREX.

When Brexit happened and the Pound fell overnight, US stocks and everything else fell overnight as well. So did people who shorted Pounds make money?

It depends. Against the dollar it did, but in purchasing power maybe not a lot.

Same thing with coins except you have 5000+ currencies instead of maybe just the top 10 worldwide ones.

I think the main question is: is real money going into these coins, or is money being printed? How out of touch or totally in touch with real value are these coins?

 

[KZX]

"If the demand for the NEO keep rising, the price would increase.
For example 1 NEO = $2.00.
That mean, 1 NEO = 0.02 BTC.

Suddenly, the price of BTC are increasing too. Example 1 BTC = $200.00, so that the price of NEO will increase too right? Meaning 1 NEO = 0.04 BTC / $4.00 right?"

Let's say you have 100 NEO and 0 BTC (1 NEO = $2.00 & 1 BTC = $100).

• If Bitcoin is $100 then you need 50 NEO to buy 1 BTC. For every NEO you get 0,02 BTC [When BTC goes down, but NEO stays the same => you make money]
  If Bitcoin goes to $200 then you need 100 NEO to buy 1 BTC. For every NEO you get 0,01 BTC [When BTC goes up, and NEO doesn't => you lose money]
  
  Own BTC when Bitcoin increase, and own any other coin that maintaines it's value (or surges) when BTC's value decrease.

• If Bitcoin increase by 50%, and NEO increase by 60%, you still make money owning NEO.
  
• If Bitcoin decrease by 10%, and NEO decrease by 5%, you still make money.
• If Bitcoin increase by 50%, and NEO increase by 40%, you lose money.
• If Bitcoin decrease by 10%, and NEo decrease by 15%, you lose money.
  

"1. What will happen if the NEO demand kept reducing, while the BTC demand kept rising?
2. What will happen if the BTC demand kept reducing, while the NEO demand kept rising?
3. What will happen if the NEO demand kept stable, while the BTC demand kept rising?
4. What will happen if the BTC demand kept stable, while the NEO demand kept rising?"

If you own NEO:
1. You lose more money. You'll need more NEO to get less BTC, therefore, you lose moeny.
2. You will make more money. Get more BTC for less NEO. Great if BTC turns bullish after a big down trend (The most profitable case | WINNER)
3. You lose money.
4. You make money.

If you own BTC:
1. You make money anyway. If you want NEO, expecting to skyrocket, you will get tons of NEO in this case! (The most profitable case, but risky if NEO keeps going down)
2. You lose money. You get even less NEO than before.
3. You will make money, and get a significant amount of NEO (more than before)
4. Your capital stays the same, but if you were bullish on NEO, now is not a great timing. You will get less NEO.

 

[PinguSpy]

"If the demand for the NEO keep rising, the price would increase.
For example 1 NEO = $2.00.
That mean, 1 NEO = 0.02 BTC.

Suddenly, the price of BTC are increasing too. Example 1 BTC = $200.00, so that the price of NEO will increase too right? Meaning 1 NEO = 0.04 BTC / $4.00 right?"

Let's say you have 100 NEO and 0 BTC (1 NEO = $2.00 & 1 BTC = $100).

• If Bitcoin is $100 then you need 50 NEO to buy 1 BTC. For every NEO you get 0,02 BTC [When BTC goes down, but NEO stays the same => you make money]
  If Bitcoin goes to $200 then you need 100 NEO to buy 1 BTC. For every NEO you get 0,01 BTC [When BTC goes up, and NEO doesn't => you lose money]
  
  Own BTC when Bitcoin increase, and own any other coin that maintaines it's value (or surges) when BTC's value decrease.

• If Bitcoin increase by 50%, and NEO increase by 60%, you still make money owning NEO.
  
• If Bitcoin decrease by 10%, and NEO decrease by 5%, you still make money.
• If Bitcoin increase by 50%, and NEO increase by 40%, you lose money.
• If Bitcoin decrease by 10%, and NEo decrease by 15%, you lose money.

"1. What will happen if the NEO demand kept reducing, while the BTC demand kept rising?
2. What will happen if the BTC demand kept reducing, while the NEO demand kept rising?
3. What will happen if the NEO demand kept stable, while the BTC demand kept rising?
4. What will happen if the BTC demand kept stable, while the NEO demand kept rising?"

If you own NEO:
1. You lose more money. You'll need more NEO to get less BTC, therefore, you lose moeny.
2. You will make more money. Get more BTC for less NEO. Great if BTC turns bullish after a big down trend (The most profitable case | WINNER)
3. You lose money.
4. You make money.

If you own BTC:
1. You make money anyway. If you want NEO, expecting to skyrocket, you will get tons of NEO in this case! (The most profitable case, but risky if NEO keeps going down)
2. You lose money. You get even less NEO than before.
3. You will make money, and get a significant amount of NEO (more than before)
4. Your capital stays the same, but if you were bullish on NEO, now is not a great timing. You will get less NEO.

Thanks.

Its complex.

Currently I focusing on how much BTC that I will get (since bittrex will auto convert all my coins asset into BTC)

....since the btc price currently are stable too.

 

[SpaceCowboy1]

Thanks.

Its complex.

Currently I focusing on how much BTC that I will get (since bittrex will auto convert all my coins asset into BTC)

....since the btc price currently are stable too.

Assuming you won't do it yourself, It doesn't convert anything, it just shows you the value in bitcoin of any altcoin you have.

 

[EagerToEarn]

This is what I wanted to know. If Neo goes up and Bitcoin goes down, am I actually making money?

Do you think bitcoin will fall? No buddy. It will go up and down. Just sell bitcoin when it will go up. Simple