How to "buy-in" the correct way?

[Mareksh]

Hello,

I'm completely new to trading and just funded my Kraken account with 350 EUR to play around / to try.

Now I want to invest in btc/altcoins. I'm wondering which way would be the best. Go from EUR to BTC and then to altcoin (XMR, XRP, ETH, DASH, LTC) or directly from EUR to altcoins?

I'm a bit confused because of the graphic here:
https://i.imgur.com/rq7zBJG.jpg

I hope I'm understanding this chart correctly.

The blue line tells me the actual "amount" of ETH.
The green line shows how much USD would 1 ETH cost.
The orange line shows how much BTC would 1 ETH cost.

Now the orange line is way beneath the ETH line, which means that you get less BTC for 1 ETH then it would be if the line would be higher.

So If I already have BTC now, I could get more USD out if ETH then going USD -> ETH -> USD, right?

I would be thankful if someone could give me some explanaition, or corrects me if I'm wrong.

Thanks.

[1715071092]

1715071092

[BitcoinHodler]

Now I want to invest in btc/altcoins. I'm wondering which way would be the best. Go from EUR to BTC and then to altcoin (XMR, XRP, ETH, DASH, LTC) or directly from EUR to altcoins?

if you want to buy an altcoin and have fiat the do the EUR to altcoin if you find the market, the prices will be the same but if you do EUR > BTC > ALTCOIN you will end up paying the trading fees twice.

I'm a bit confused because of the graphic here:


I hope I'm understanding this chart correctly.

The blue line tells me the actual "amount" of ETH.
The green line shows how much USD would 1 ETH cost.
The orange line shows how much BTC would 1 ETH cost.

there is a key beneath that chart. take a look at it.
the blue line is the "market cap" which is the multiplication of price and all the available coins (click on it to make it disappear it is useless)
the green line is price in USD (1ETH =$49.95)
and orange is price in BTC (1ETH=0.0395....BTC)

Now the orange line is way beneath the ETH line, which means that you get less BTC for 1 ETH then it would be if the line would be higher.

So If I already have BTC now, I could get more USD out if ETH then going USD -> ETH -> USD, right?

I would be thankful if someone could give me some explanaition, or corrects me if I'm wrong.

Thanks.

you need to check the prices directly from your exchange (kraken) this chart you are currently looking at is from coinmarketcap and it is reporting an average numbers for the most part and it is not 100% accurate to make calculations.
in kraken:
ETH/EUR = 45.90
ETH/BTC = 0.039341BTC
BTC/EUR = 1167.90

350 EUR > 0.29908BTC > 7.5871 ETH
350 EUR > 7.6100 ETH
(please note that prices fluctuate and these numbers may have changed while i was calculating, also  for each trade i considered fee to be 0.2%)

[Mareksh]

BitcoinHolder, thank you very much for the detailed explanation. 

[d5000]

Now I want to invest in btc/altcoins. I'm wondering which way would be the best. Go from EUR to BTC and then to altcoin (XMR, XRP, ETH, DASH, LTC) or directly from EUR to altcoins?

It depends. The volume for the BTC/altcoin trading pairs is often higher and has more liquidity than the fiat trading pairs. Above all if you want to buy large amounts, I would go first into BTC and then to an alt.

But for values like the 350 EUR you mentioned, you can go directly from EUR into your desired altcoin if you see the price is OK - as BitcoinHodler said, you can avoid "double fees" in this cases. Sometimes you can find very good prices in trading pairs with a small volume (e.g. if someone is desperately trying to sell), but the probability is higher the price is a little bit worse because of a higher bid-ask spread (price difference between buy orders and sell orders).

[Naokia980]

Now I want to invest in btc/altcoins. I'm wondering which way would be the best. Go from EUR to BTC and then to altcoin (XMR, XRP, ETH, DASH, LTC) or directly from EUR to altcoins?

if you want to buy an altcoin and have fiat the do the EUR to altcoin if you find the market, the prices will be the same but if you do EUR > BTC > ALTCOIN you will end up paying the trading fees twice.

I'm a bit confused because of the graphic here:


I hope I'm understanding this chart correctly.

The blue line tells me the actual "amount" of ETH.
The green line shows how much USD would 1 ETH cost.
The orange line shows how much BTC would 1 ETH cost.

there is a key beneath that chart. take a look at it.
the blue line is the "market cap" which is the multiplication of price and all the available coins (click on it to make it disappear it is useless)
the green line is price in USD (1ETH =$49.95)
and orange is price in BTC (1ETH=0.0395....BTC)

Now the orange line is way beneath the ETH line, which means that you get less BTC for 1 ETH then it would be if the line would be higher.

So If I already have BTC now, I could get more USD out if ETH then going USD -> ETH -> USD, right?

I would be thankful if someone could give me some explanaition, or corrects me if I'm wrong.

Thanks.

you need to check the prices directly from your exchange (kraken) this chart you are currently looking at is from coinmarketcap and it is reporting an average numbers for the most part and it is not 100% accurate to make calculations.
in kraken:
ETH/EUR = 45.90
ETH/BTC = 0.039341BTC
BTC/EUR = 1167.90

350 EUR > 0.29908BTC > 7.5871 ETH
350 EUR > 7.6100 ETH
(please note that prices fluctuate and these numbers may have changed while i was calculating, also  for each trade i considered fee to be 0.2%)

Thanks for explanation! I appreciate your work

[moviebuff777]

Hello,

I'm completely new to trading and just funded my Kraken account with 350 EUR to play around / to try.

Now I want to invest in btc/altcoins. I'm wondering which way would be the best. Go from EUR to BTC and then to altcoin (XMR, XRP, ETH, DASH, LTC) or directly from EUR to altcoins?

I'm a bit confused because of the graphic here:


I hope I'm understanding this chart correctly.

The blue line tells me the actual "amount" of ETH.
The green line shows how much USD would 1 ETH cost.
The orange line shows how much BTC would 1 ETH cost.

Now the orange line is way beneath the ETH line, which means that you get less BTC for 1 ETH then it would be if the line would be higher.

So If I already have BTC now, I could get more USD out if ETH then going USD -> ETH -> USD, right?

I would be thankful if someone could give me some explanaition, or corrects me if I'm wrong.

Thanks.

For me personally, it doesn't really matter if you trade fiat for altcoins or BTC for altcoins. The main thing is trade fiat for BTC and then a few other trading pairs, but if you do too many, it gets very cumbersome and confusing.

[jeraldskie11]

In trading, that is also important on traders. Computing and analyzing on the currency that he wanted to trade or to buy. For me, I preferred to buy at the low price to reduce your money to be risky. Volume btc is very important also, this is the trick: buy a currency that its volume has a small amount $ or btc because it easy to be double your money because of its small amount in volume, example if it has $ 89 volume then next month is $100000 for sure you will profitable unlike if the is $500000 already, it has a low chance to pump you will not be profitable.

[el kaka22]

Now I want to invest in btc/altcoins. I'm wondering which way would be the best. Go from EUR to BTC and then to altcoin (XMR, XRP, ETH, DASH, LTC) or directly from EUR to altcoins?

If you are capable of buying altcoins with your fiats then I will suggest you to go for it as it will be saving some commissions. But I'm not sure that you are already aware of the process of depositing fiats into crypto currency exchanges to buy those altcoins. But, you can find local sellers also for these coins to buy from them.

But usually people who are trading/saving altcoins, buying them with bitcoins as they are already having bitcoins ready for their purposes. But going straight would be the right approach if you ask me.