I can only buy so many dips

[block-t]

@TenaciousJ

plus you get the bonus of whatever value BTC gains in the same time period

This is wrong in my opinion and that’s a reason I do not understand the whole BTC pairings-trading.

You do net get the ‘bonus of whatever value BTC gains in the same period’, since ADA would have to double it’s price to gain the BTC gains as well.

If, let’s say BTC is at 10k USD and ADABTC is at 3k Satoshi.
BTC goes up to 20k USD and ADABTC goes to 1.5k Satoshi, it still has the same USD value.
It just means BTC is worth more USD but that doesn’t mean ADA is worth less USD.

But, if BTC goes from 10k USD to 20k USD and ADA goes from 3k USD to 6k USD like in your example, you have made a lot more which is very unlikely though (besides USD goes down the drain lol), because of my explained example above and because IMO ADA and BTC won’t go up at the same time. (IMO BTC has to go sideways for Alts to go up)

Furthermore, I can somewhat understand the XXXBTC tradings, but not fully since it is still very risky IMO.
You could have made gains the whole year and then BTC goes down the drain → your gains as well.

This is no financial advise, only my opinion and please correct me if something’s wrong.

Greetings.

[TenaciousJ]

If you look back at 2017, ADA went up WITH BTC. In fact, against BTC, ADA made 2800% gains, even after being flat from October to the end of November. Now… take that investment period, let’s say you bought 100,000 ADA when it launched and sold the top… 300 sats to 8700 sats for 8400 satoshi gains in 2 months (I know that it’s unrealistic to imagine an identical repeat, but this is for example’s sake).

100,000 x 0.00000300 = 0.3 BTC invested - at that time BTC was valued at $4,200 so that’s $1,260 invested.

100,000 x 0.00008700 = 8.7 BTC when sold - at that time, BTC was valued at about $16,000 (Dec. 27th)
so that’s $139,200 USD.

So the value of ADA went up in Satoshis at a faster rate of growth than bitcoin’s price went up. So you’re gaining against bitcoin, AND bitcoin is going up against USD, so that at the end you’ve made $137,940 (109x gain) in 2 months by trading against BTC (assuming you sold the top, which is, again, very difficult to do, but even adjusting 10% for slippage you’re still netting $124,146)

The same $1,260 invested in BTC would have netted you about $4,800 if you sold when ADA peaked.

THAT is why I trade alts against BTC. I hope that’s illustrative.

Once we get actual USD pair trading data from Cardano from a substantial time period, we can then analyze whether trading in USD or BTC actually makes you more or less money, but unfortunately that data doesn’t exist yet… we need to see trading data from a bull run on both USD and BTC from the same time period. Hopefully we’ll get that data soon.

[swoops]

You clearly asked this question in a completely different environment but I decided to answer it like you asked it today.

I’m my opinion it is highly dependent on the development of the chain. IOHK appears to be much more committed to transparency lately. If they can come through on several of the items on the road map by year end 2021 I think you will be very happy you bought the dips over the past year, or next.

[Donnybaseball]

Try the Yoroi wallet from Emurgo.