24 hours ago I traded 6.65 ETH for 700 ANT (Aragon) at 0.0095 price.
Now, compared to 24 hours ago, ETH price is the same.
Now, compared to 24 hours ago, ANT price has gone up 27%.
I would assume the ETH-ANT ratio would be highly in ANTs favor and I could take a profit from ANT (27% profit?). I would assume the current price should be roughly 0.012 (27% increase).
However, the current ETH-ANT ratio is at 0.0091... WTF? That means my ANT is worth less than what it was 24 hours ago compared to ETH and if I sold now, instead of making a 27% profit I would make a 4.3% LOSS???
Why don't altcoin ratios move in line with general prices?
Can anyone explain? So confused...
As mentioned in the earlier post, the price quoted for any currencies (fiat or crypto) are in pairs, for example, fiat currencies:
EUR/USD (pricing euros against us dollars)
AUD/USD (pricing Australian dollars against us dollars)
EUR/AUD (pricing euros against Australian dollars)
therefore when EUR goes down against USD, does not mean EUR is down against AUD.
For fiat currencies, pricing of pairs are typically very transparent and differs very slightly between various touchpoint (dependent on the spread that the dealers wants to take).
For crypto (as far as my understanding is correct), the bid-off differs from exchange to exchange and some traders actually arbitrage these differences to make $$.
So for your scenario above, you bought ANT against ETH (in exchange for ETH) and you mentioned ANT went up by 27%? 27% relative to which crypto? and are you comparing price in the same exchange?
Apologies for a long response for a short question and hopefully i did not confuse you further.
