Paying attention to USD (US Dollar) price or even how much USD you have made with an investment is not what you want to do.
Ya, I know. This does not seem right. Don’t I want to make more cash?
Yes you do, but not how you think. Especially when investing in alt coins (mainly any coin other than Bitcoin, Ethereum, or Litecoin.)
When you purchase an alt coin, you buy it with Bitcoin. I know you can use other coins as well but for this example I am using Bitcoin.
Then when you sell your alt coin, you sell it back to Bitcoin NOT USD. To cash out into USD, you have to convert it to Bitcoin first.
This is important to remember.
An example. I invested in Power Ledger and in a couple days I had made $50 on this investment. At the same time I had actually lost Bitcoin.
So if I had sold at that exact moment I would have actually gotten less Bitcoin back than what I used to purchase Power Ledger with.
If I did sell, taking less Bitcoin, I would have had to convert that Bitcoin to USD right away to make my $50. If I did not convert it to cash, I would lose money on this investment because of losing Bitcoin.
This happens when Bitcoin moves higher than your alt coin.
Think about it like this. If you have a coin that is worth $0.01, and it doubles to $0.02, but Bitcoin also doubles, then you have not gained anything.
If it has grown percentage wise more than Bitcoin, then the difference in percentages is your earnings.
Your choice when investing.
Do you want to focus on USD or accumulating more Bitcoin?
I personally am trying to accumulate Bitcoin. I see Bitcoin continuing to rise in price, so the more I have the better. But this is up to you individually.
Many other people simply make an increase in USD and then cash out.
But if you are like me and trying to accumulate Bitcoin, STOP paying attention to the USD price. Don’t look at it when buying or selling.
Only pay attention to Bitcoin, or whatever coin you are using to purchase alt coins with.