ETH/BTC - does the rate of Bitcoin influence my profit?

[Sv3nnn]

Hi guys,

I have a (for me) mindbreaking question that keeps me up at night

A couple of days ago I have puchased some Ethereum (ETH/BTC).
I'd made a little profit (about 5%), but when I wanted to sell my Ethereum coins I had just play break-even.

Is this because I also have to worry about the Bitcoin rate? (because i'm selling for Bitcoin (ETH/BTC)). When Bitcoin is going down I am getting less Ethereum?

or is this because of the fees?

Like to hear from you!

cheerss

[RosemaryNarrative]

Yes, if you're converting ETH to BTC, you will incur transaction fees (depending on where you're doing your deal) and the market value of both currencies at the moment you make the transaction will be taken into account as well. You can't calculate your percentage profit in USD if you're going from ETH to BTC. Also, with the volatility of both ETH and BTC right now, your profit/loss will be changing almost hourly.

[TryNinja]

It all depends on ETH/BTC ticker.

The 1 ETH = x BTC rate is always changing because of the Bitcoin Price. Let's imagine that the market decides that 1 ETH is worth $650 and this same amount is worth 0.05BTC. If the Bitcoin price doubles and the ETH price remains the same (in dollars), it's obvious that the rate will change to 1 ETH = 0.025BTC (now worth $650).

Ethereum is Ethereum and Bitcoin is Bitcoin. The BTC price will always influence the price of other altcoins, but the Ethereum price is not directly pegged to the BTC price.

[Sv3nnn]

Would you recommend to trade a crypto currency to USD? For example ETH/USD.
Because the USD is a more fixed value (fluctuate less).

[mtca]

You have to worry about prices in fiat for both currencies. The ETH/BTC rate just gives which currency appreciated or depreciated regarding its pair.