Ok, Im new to cryptocurrencies and markets in general. Ive invested in a few different alt coins and have got what may be a really stupid question and hope someone could clear it up for me.
Say youve invested $500 in bitcoin at the latest rate, and purchased an altcoin at a price which is very appealing. What happens if (over time obviously) Bitcoin deflates massively but the altcoin value rockets? How could you get what is effectively a handsome profit to a fiat currency without losing?
Thank in advance!
It would either be remaining on the same value if you base it in dollars or even diminished. However, if the growth of your altcoin is so huge that it will overcome the price dump of Bitcoin, you might still end up with a gain all in all. What I've noticed though is that if Bitcoin goes too low, even of the altcoin I am holding is gaining, the overall value is still lower.