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!
You still (usually) need to convert back to bitcoin to cash out.
So if the alt rises and bitcoin goes down, you need to wait until bitcoin stops going down before you cash out. So you either keep the money in the alt and wait, or you convert to Tether and wait. And then once bitcoin is stable, you convert to bitcoin and cash out.