Altcoins, at least for now, can only be purchased using BTC or ETH. Bittrex plans to change that, but they have not done it yet. So the question is, when looking to buy altcoins, are you concerned with their price in USD or in bitcoin?
I have seen on Youtube people claiming that they only use one or the other method. To me that is limiting and incorrect.
The one to use is the one that gives the relevant information for your action. Thus, the answer is dependent on two possible scenarios:
1 – Buying altcoins with NEW CASH.
If this is what you are trying to do, then the USD value of the coin is the primary concern. If you think you have a good entry point or you do dollar cost averaging, it doesn’t matter. Buy the BTC regardless of cost and then use it to buy the alt you wanted. Due to the transitory use of BTC, its price is irrelevant. Of course if you wait a while, things could change. But that is scenario #2
2 – Buying alts with BTC you already own
If you have BTC, and have had it for a while, and want to buy altcoins, then the price in BTC is what matters, regardless of the USD price of the altcoins. Looking at the altcoin versus the BTC chart is important here. Also, what did the BCT price do over the short term versus the altcoin. If the BTC price dropped then it is a better buy. A great buy is when the BTC price dropped hard versus the USD price of the alt, on 7 day chart.
When selling altcoins back into BTC, the reverse holds true. It could get a bit more complicated if you sell only to get into another altcoin and use the BTC only as an intermediary. Atomic swaps will allow bypassing this intermediary step. I look forward to the day when we can swap any cryptos for each other AND, THIS BEING VERY IMPORTANT, when we can look at a chart pricing each alt into any alt.
Coinmarketcap.com appears to have realized this and it is not showing prices in several coins including LTC and XRP. It’s a beginning but there is a long way to go.
There are more things to consider when you use altcoins for short term trades.
How do you look at prices for your entry points?
