ADA paired with BTC and ETH, noob question


#1

Hey I think this a bit of a noob question but I have been wondering how it works. I guess this is a general crypto question.

Since ADA is paired with ETH and BTC does this mean if the value of etherium and bitcoin goes down the value of ADA goes down too? Or does it readjust by itself to the going price of ADA?

So if the price of etherium is shooting up, the price of ada to eth seems like its going down on the charts, but its actually readjusting to remain at the going price of ADA, right ?

Thanks ^^’


#2

Following - sometimes the English Major in me has a hard time wrapping her brain around this. Urgh…


#3

It’s paired on exchanges because those are the biggest most used cryptos so it’s easy to pair with. Price will go up and down depending on their price , they tend to be same price of fiat but can change quickly if all of a sudden bitcoin loses half its value on that exchange . You can either look at fiat prices or you can look at how many units of Satoshi it is worth , they will mostly fine common ground on fiat price but will differ on Satoshi relation to how well or not bitcoin is doing . Just expect when bitcoin starts its bull run altcoins will take a beating and when it looks extended that’s when people get into alts, long term Cardano will be great project it seems.


#4

When two currencies are “paired” it just means you can directly exchange one for the other. If they’re not paired you have to go via another, most often BTC or ETH, because they’re paired with all (nearly all?) others.


#5

I guess what your question is “Does ADA price in dollars change as price of BTC and ETH?” Most accurate answer, imo, is CURRENTLY YES.

ADA should have its own price, but since it’s paired with BTC and ETH, its value in dollars is derived from current ETH/ and BTC/.

Since ADA/ETH is stable atm, but it’s price in dollars changes, in same way as ETH/USD, you can say that yes, it indeed changes.

Also bear in mind that this all might change once ADA gets paired with USD, but doesn’t have to (I bet on that it won’t).

Hope this helps.