Using Satoshi Instead of USD to Judge Your Trade In BTC

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Hello dear Steemians!

Someone asked me to explain why many good traders always advise that you can only judge if a trade is successful or not by comparing it to BTC, using Satoshis instead of USD.

1 bitcoin is made up of 100 million satoshshi's...named after bitcoin inventor satoshi nakamoto (probably fake name).

If you had 1 bitcoin and 455606 satoshis, it would be written like this...

1.00455606

The reason we all talk in terms of satoshi instead of USD terms is because satoshis are the trading pair for almost all crypto. You sell BTC (satoshi) for whatever alt coin...let's use NEO as the pair.

So, you trade some BTC for NEO...you spent 455606 satoshis and got 1 NEO coin as that is the current price...now you own 1 NEO coin.

At the point you bought that 1 NEO coin, it was worth 20 dollars (made up USD number for example). A day later, that NEO coin is worth 22 dollars.

Was that a good trade? Did you make a smart move by trading .00455606 satoshis for that NEO?

You don't know. Because you're using USD to determine the strength of your trade.

What if I told you your 1 NEO is worth 22 dollars today...a 2 dollar improvement.... but it's only worth. 00453033 satoshi? IS that a good trade? The NEO coin is worth MORE in USD, but it's worth LESS in BTC value...was it a good trade?

The answer is No. The .00455606 satoshis you traded for that 1 NEO coin is now worth 30 dollars (pretend numbers). The 1 NEO coin you now own is only worth 22 dollars.

The reason we gauge all our trades in satoshi is so we know if we are making smart trades or not...using USD doesn't tell the story because the NEO only went up in USD because BTC went up in USD.

You can only judge the strength of your trades by using Satoshis.

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