I’ve got a stupid question...

[Viper2488]

Ok, I’m new to cryptocurrencies and “markets” in general. I’ve invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.

Say you’ve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?

Thank in advance!

[1714911956]

1714911956

[1714911956]

1714911956

[sunhany]

Ok, I’m new to cryptocurrencies and “markets” in general. I’ve invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.

Say you’ve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?

Thank in advance!

You can exchange your profits to Tether (USDT) this is a crypto that keeps its price equals to 1 dollar per unit. Most exchanges have this coin, check it out here: https://coinmarketcap.com/assets/tether/#markets

[Poink]

Ok, I’m new to cryptocurrencies and “markets” in general. I’ve invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.

Say you’ve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?

Thank in advance!

Very unlikely to happen but actually that is a very ideal scenario.  Convert your coin to BTC, hold then cash once it rebounded.

The scary scenario is; your coin rose in value (so is BTC), you trade in BTC...then before you cash it, the BTC price suddenly drops (and you can't wait)

[Viper2488]

Ah, that’s interesting to know. So you’d just sell at your favourite exchange to Tether I’m assuming? If so, who is buying in Tether considering it doesn’t change price?

But it’s impossible to know how long Bitcoin would take to rebound to ensure withdrawal of the same amount of profit; if you needed it out immediately that is...

[HashFace]

If I understand the question correctly, you are asking how would "cash out" your alt coin profits to fiat at a time when bitcoin is declining? 

Good question, since most Alt Coins can't be traded directly for fiat.  One thing to remember is that just because bitcoin has declined, it doesn't mean that you would lose your profits if you convert your altcoins back to bitcoin, just for a few minutes, just for the purpose of cashing it out.  You just get more bitcoin than you originally had because the price would be lower.

Or, if you are not comfortable with converting to Bitcoin, you could convert your alt coin to something like Etherium or Litecoin, then send it to Coinbase and cash it out to fiat.  At Coinbase, right now, you can only cash out from Bitcoin, Litecoin, or Etherium.

[chutchmcgillicutty]

How far off do you think it is until we can cash out any altcoin to fiat? 5 years?

[kirito1614]

Likewise, there are other option of how you will withdraw your invesents since other said that some altcoins wasn't able to convert in fiat like Bitcoin. First is the Coinbase which enables Litecoin and ETH to convert to fiat and cash it out but this is working in limited regions in the world.

In my opinion, I think its best to just hold your cryptos and wait until the demands rise up. Higher demands leads to higher value of that coins in sales.

[Viper2488]

Great info, thanks for all the replies

[DigeNarrator]

How far off do you think it is until we can cash out any altcoin to fiat? 5 years?

It wont work with any altcoin

[thompshma]

How far off do you think it is until we can cash out any altcoin to fiat? 5 years?

It wont work with any altcoin

You can sell ether for fiat at several exchanges.

[Voice-Of-Reason]

depends on the exchange and the trading pairs available I suppose... math

[NoiseBoy]

You need to open an account with an exchange that handles fiat exchange. An exmample in the United States would be Kraken. There, even if there isn't a currency pair between your altcoin and USD, you would just sell your altcoin for bitcoin, then immediately sell the bitcoin for dollars, which you could then withdraw to your bank account, and use to buy a shiny new lambo.

[Getmon]

Ok, I’m new to cryptocurrencies and “markets” in general. I’ve invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.

Say you’ve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?

Thank in advance!

It would either be remaining on the same value if you base it in dollars or even diminished. However, if the growth of your altcoin is so huge that it will overcome the price dump of Bitcoin, you might still end up with a gain all in all. What I've noticed though is that if Bitcoin goes too low, even of the altcoin I am holding is gaining, the overall value is still lower.

[Littledragons]

I personally kind of think about trading alt-coins as derivatives. There is a significant amount of noise in all the markets but some are bigger than others. The bigger markets I liken with blue chip stocks - and the other alt-coins can be used as derivatives for the coin.
For example
BTC goes up and down.
LTC goes up and down.
If you are trading at Kraken you can actually take your altcoins directly to fiat most of the time.

So if you buy 1000 dollars in BTC and say 500 in ETH - then distribute the BTC around (maybe 500 of it) to altcoins.
If BTC crashes then that 500 depreciates, but if ETH stays stable and your alts go up you can exchange it in and out of whatever is high or low at the time.

Its important to note that this is purely hypothetical, and really only functions well if you have trading experience (buy low/sell high).

Honestly one of the safest ways to invest is to pick a couple and hold for the long-term.
If I had held all the LTC I had mined back in 2013 I wouldnt be where I am right now.... but I had bills and such - so I prioritized.... sadly.

[frowsiter]

In that case I would suggest you to hold all those coins fir long time. Don't break your patience in between and go selling all those coins for zero profits. I would suggest you to rethink on the coin in long term by looking at its past charts. Whether the coin has been pumped again and over again in the past or not. Keep track of that and the bitcoin news obviously. Altogether you can find a good way to work with those coins.

[Babayega31]

Ok, I’m new to cryptocurrencies and “markets” in general. I’ve invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.

Say you’ve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?

Thank in advance!

If the price of bitcoin will not go down deeply you can still earn if the coin you have bought go skyrocket so hard but if that pump is so little then I can stay that you cannot say that you've earned since mostly the basis on exchange right now is the value of the btc. IF btc value decreased all altcoin value will decreased to.

[Sungoku]

Ok, I’m new to cryptocurrencies and “markets” in general. I’ve invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.

Say you’ve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?

Thank in advance!

If the price of bitcoin will not go down deeply you can still earn if the coin you have bought go skyrocket so hard but if that pump is so little then I can stay that you cannot say that you've earned since mostly the basis on exchange right now is the value of the btc. IF btc value decreased all altcoin value will decreased to.

yes indeed if bitcoin goes down but altcoin rises may be an opportunity to buy altcoin,
because it is very profitable

[Argon2]

Ok, I’m new to cryptocurrencies and “markets” in general. I’ve invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.

Say you’ve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?

Thank in advance!

That's more than one question. Please condense...

[veraoktav127]

Ok, I’m new to cryptocurrencies and “markets” in general. I’ve invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.

Say you’ve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?

Thank in advance!

For your bitcoin, try to survive and expect better prices
for further variations of conversion of bitcoin such as etherum

[Cnut237]

Ok, I’m new to cryptocurrencies and “markets” in general. I’ve invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.

Say you’ve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?

Thank in advance!

You still (usually) need to convert back to bitcoin to cash out.
So if the alt rises and bitcoin goes down, you need to wait until bitcoin stops going down before you cash out. So you either keep the money in the alt and wait, or you convert to Tether and wait. And then once bitcoin is stable, you convert to bitcoin and cash out.