How do you Measure Profit

[shamzblueworld]

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

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[dothebeats]

I focus mainly on the amount of BTC I gained and kinda disregard the net profit in USD. After all, bitcoin is what appreciates in value over time and not your USD. As for alts, that goes the same thing: net profit for BTC is what's more important. Though it is true that even if you gain more USD compared to your initial investment, you still lose some bitcoins in the process which might affect maximizing your profits.

[DaMut]

what will i do whenever i am finding this kind of situation ?
i will set my own goal first and predicting the market movement in the next few weeks or months later.
currently i am an altcoin,if i sell it right now my investment value in usd increase a lot but significantly decrease in Bitcoin.
before doing anything i will do my own research,how long this kind of movement will last ?
if i hear something that will happen and it's a good one for Bitcoin,that mean the  price will increase again in the future.
which mean if i sell it to Bitcoin right now,it has a possibility to increase it more again when the rise happen in the future.
of course i will sell it to Bitcoin right away.
but if i heard something bad will happen and the hype is overflowing,
i think the downrun will happen in upcoming days,which mean it's a good time to hold it or secure my profit in USD.

[Chris!]

I'm a bitcoin HODLer. If I invest in something else, I've invested with my bitcoin, expecting (or hoping) that I'll end up with more bitcoin in the end, or at least that my investment is rising faster than Bitcoin. Seeing the overall fiat value is helpful for my whole portfolio, but I don't know what each coin is worth in fiat. People think litecoin and ethereum are doing great because they hit all time highs in fiat. I think they're doing the same as usual because they're nowhere close to the bitcoin value ATH.

If you have fiat you're definitely losing buying power each and every year, so why not take a risk and put it into crypto?

[djsugar]

I do all of trades through BTC. So, I tend to measure my profit in BTC because if I haven't invested my BTC in any other coin, it would have stayed in BTC and had grown in dollars. I fell BTC is the medium of trade for most of the people here. Many might buy ETH and trade. But majority is using BTC because of its easy availability and every coin has BTC pair leaving of course, etherdelta.

[TWagner92]

Measuring by the percentage gain/loss would be a good way to document your trades and the overall growth of your account.

[std1391]

i measure it by btc not usd , if my btc encrease i call it profit
i write my btc first of mounth and check it end of the months

[rysea2]

Measuring by the percentage gain/loss would be a good way to document your trades and the overall growth of your account.

yes that's right, by doing so we can know the income that we get in every we do trading and it can be our next reference.

[joinfree]

This is what a lot of people will never understand, they made x5 from the USD value, but they lost in coordinance with bitcoin.

If they kept holding those bitcoins instead of buying those altcoins, they were probably going to earn more.

They will never understand that.. But if you are talking about the other altcoins that are making 70% a day,
it is obvious that they are being more profitable than bitcoin, of course.

You can not compare an altcoin which does more than 400% of increase in a month, with bitcoin who makes aprox 30% in a month.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it

[Kriptex]

I focus mainly on the amount of BTC I gained and kinda disregard the net profit in USD. After all, bitcoin is what appreciates in value over time and not your USD. As for alts, that goes the same thing: net profit for BTC is what's more important. Though it is true that even if you gain more USD compared to your initial investment, you still lose some bitcoins in the process which might affect maximizing your profits.

Oh this is a btc focussed perspective. Some people prefer to make it in terms of dollars and they take EUR or USD as a reference after their trades on the markets. Some others are taking ETH as a reference.

[clarkt]

If you find yourself in this kind of situation, there are two question you should ask yourself, Do you want to be rich in Fiat or Bitcoin? Do you want to make profit now and gain Fiat to spend! These question will determine what you do next!

[figmentofmyass]

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

when you trade cryptocurrencies, you need to decide what your "base" currency is. that depends on your goals: are you trying to earn USD and are mainly concerned with preserving your USD capital? or are you trying to earn BTC?

i learned early on that it was only healthy for my mindset to trade BTCUSD with the intention of earning USD. i consider my BTCUSD trading account as a USD income source and my BTC cold storage as my long term portfolio.

you need to take the same approach with altcoin trading. if losing BTC is going to drive you mad, then make sure that your system is built to preserve BTC capital rather than USD capital.

[Jaya912]

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

Well, for me i will just cash out then. If the price compare in bitcoin very low, and compare to fiat is already 5x profit so i will just cash out to fiat first then waiting for the stable price. 5x is not small, it is very big.

[maaydin]

I usually focus and measure my profit in terms of fiat currency because when I hit my target and want to cash out my earnings I can easily convert my coins in the market price.

[entrepmind23]

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

It is sure confusing at first when you are in profit in terms of dollar but you are at a loss in terms of number of bitcoin. For me, I measure my profit in bitcoin because my intention is to make more bitcoin. I disregard the dollar value because I am positive that in the future it will go up. If I just think of just sticking to bitcoin and not buy any altcoin then I would have more money compared to buying an altcoin in which its bitcoin value go down so I would have lesser amount of bitcoin and in return, a lesser amount of dollar.

But then it would depend on the person how he will measure its profit because maybe his intention is to have more dollars so even if the amount of bitcoin goes down but his dollar value goes up then he is still in profit. It depends on the point of view of the person because what if he doesn't intend to trade with bitcoin but with altcoin vs. fiat so it is just right to measure the profit with the base currency he is trading and in this case it is fiat.

[ihsanskanzaone]

I measure profit by looking at the difference from the initial price of bitcoin with price increases. So every bitcoin price goes down I will buy it and sell it when the high price is what I do to make a profit. But this activity will be a big risk if you are less careful in deciding whether you should buy or sell.

[eaLiTy]

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).
Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.
Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.
What do you do now?

There is nothing you can do about it,i never expected the price of bitcoin to rise this much this year and i have invested over ten bitcoin in various projects and my investment is bleeding badly and the amount of money i could have profited holding bitcoin alone would have made me happy,now my solution is to hold onto my coins till those coins rise to the level i am supposed to have in the first place and i am not sure how long it will take,but i will be holding for the long term.

[hatshepsut93]

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

You are thinking correctly, when you are trading alts you should forget about their USD prices, BTC price is the only one that matters - when you buy an alt you risk that it will end up a pump and dump scheme, that some whale will crash the price, that it was a scam from the beggining, that there are some bugs with software, that it can be 51% attacked and so on - it's much more riskier and volatile than BTC, so if you end up with worse performance than BTC, it's a big loss. If you will go to coinmarketcap, switch to BTC only prices and start looking at hitstorical charts of alts, you will notice that almost all of them drop in long term against BTC - this means that hodling alts for long time is a bad idea. With alts you are supposed to buy low and sell high frequently, your positions should last for few days or few weeks at most.

[BartS]

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

You lost money is that simple, if you had held your bitcoin then your earnings would be higher, this shows that while alts can outperform bitcoin in certain circumstances especially since it is easier for an alt to skyrocket there are circumstances like the current one where just investing in bitcoin is your best choice this is why the best you can do is to have a diversified portfolio.

[olushakes]

When trading altcoin on exchanges, most people buy alts with bitcoin(Or lets just say they do).

Now with the bitcoin value rising so high, obviously the alts are comparatively at very low in terms of bitcoin invested.

Lets suppose when invested a certain alt was at 1 dollar, and now it is at 5 dollars. That is a huge profit percentage and perfect time to cash in, BUT its value in bitcoin is still less than the value you bought it for months ago.

What do you do now?

The best way to measure profit is to consider only the BTC denomination rather than the dollar equivalent. If I buy at 1 satoshi, and I sold at 10satoshis that is profit regardless of what the BTC price is saying because using the USD equivalent would mean its subjected to the fluctuation in price and that would distort profit measurement. Price could fall does that mean profit has not been made? Obviously no. But if its buying bitcoin with fiat, that when measuring profit would be at the dollar equivalent.