The crypto market grew to a point where I can take profits. Time to buy that new computer! I have 2 Ethereum. My new PC costs... $1964.41. FUDGECAKES! I need a new monitor. Nature blessed me with migraines. That won't be cheap. The price of RAM and GPUs are ridiculous. But I'm committed to getting a PC that will last me 10 years! AKA 3 years. Time to cash out into fiat, USD, the green pyramid.
I go to sell my Ethereum on GDAX. Then I realize they don't accept PayPal. My bank is being pure evil with double charges. I'll be leaving them in a few months. There goes that simple plan. I know! I'll use Coinbase. But Coinbase is to be having trouble with PayPal. They are temporarily pausing services Feb 23rd. FUDGE!!!! I tell people on a crypto chat room, looking for advice. They accuse me of spreading FUD, I list the links to Coinbase's status section and in big red it says, "PayPal Down." I get demoted in the chat room by an Admin. Well, I'm never going back to that crap hole. Time to consult an expert. The expert reminds me you can pay NewEgg with Bitcoin, BTC. Yes! Problem averted. That was an adventure. It's time to crunch the math.
My 2 Ethereum is worth $932. If I cut corners I can buy the new PC. If I HODL I can get everything I need. With money remaining. I need to determine what to do. When I convert my Ethereum into BTC. It must to cover $1964.41. If I sell 2 Ether now, at $1000 x 2 = $2000. But fees will put me at a loss. I can wait for the BTC to grow. NewEgg doesn't accept Ethereum. BTC is at $10,000. How much would it have to grow?
Value $10,000, Value 2 $13,000 = ?% Solve Equation below, click the link to go to the site.
30% increase of $2,000 worth of BTC. Solve Equation below, click the link to go to the site.
$600 + $2000 = $2,600. Easy. But we have a problem. The math won't be that simple. Let's look at a more realistic scenario. See if you line up with my answer.
$932 x 2 = $1,864 BTC is at $11,532.70
Value 1 $11,532.70, Value 2 $12,732.50
9.88% increase of $1,864 = 184.16 + 1,864 = $2048.16 I cut 184.1632 down to $184.16. Why did I chop out anything past .001? It's fractions of a penny of a dollar. I'm dealing with thousands of dollars.
If you did the math right, adding in NewEgg fees, it's not enough money. We want a $300 buffer, $2,300. What if I hold in Ethereum? If I move to BTC, and I know it's not growing too much. I'm better off staying in Ethereum. What would be a good amount? This is really simple.
$1,150 x 2 = $2,300. My range should be $1,150-$1,300 per coin. When it hits that range I move to BTC and buy that new PC.
What was the purpose? I was better off waiting on Ethereum to grow 20%. It helped me determine holding was the safer path. If Ethereum was at $900 and BTC was at $9000. That would be a really good time to sell Ether for BTC. BTC would have hit $11,000 easily. The equation above taught me 10% difference is where I would sell early.
Disclaimer: This calculator is in beta. It needs testing before it can be refined. I do not recommend daily trades, given the way the bots occupy the exchanges. Monthly trades are recommended for practice. When we're in a massive dip cycle January, July, or a massive growth cycle June, December. Use this calculator first to see if it's worth buying or selling. I will be adding in 3 sections that automatically calculate for you. Until that time use the formulas listed above. They are straight forward.
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