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| comment | | "parent_author":"",<br>"parent_permlink":"hive-167922",<br>"author":"davidke20",<br>"permlink":"steem-talk-understanding-crypto-trading-episode-3",<br>"title":"[Steem talk Understanding Crypto Trading - Episode 3",<br>"body":"https:\/\/i.pinimg.com\/564x\/ed\/ef\/e4\/edefe480e264985077e352ad5df865e9.jpg\nSource from [pinterest (https:\/\/www.pinterest.com\/pin\/224335625164717286\/)\n\nToday,<br> I would like to discuss with you why is it important to denominate the trading pairs. If you have not read the previous episode,<br> please proceed to the bottom of this post and find out the link. It's important for your to understand episode 2 before you proceed with the following information,<br> or your brain will explode.\n\n# Concept of BUYING with denominator in FIAT world\nWe live in one country,<br> we're bound to \"think\" of our own currency at one denomination. We just don't give a flying fish about how much it worth when the product we're buying are worth in other denomination currency,<br> will you? You live in Canada,<br> you earn Canadian dollar,<br> you go to McDondal's and buy a BigMac meal,<br> you paid with your Canadian Dollar,<br> will you think of how much does it cost if you pay in USD? Probably not,<br> unless you stay around that border line,<br> working on another country,<br> like you earn USD but you spend CAD. However,<br> that does not change the perception of buying with denominator. Take the picture above for example,<br> if you put the BigMac as numerator,<br> and the amount of cash you spent is denominator,<br> is it so hard to understand now? Which means,<br> if you wanted to buy 1 BigMac meal,<br> you will have to pay 4 dollars regardless. If you do not pay 4 dollars,<br> you pay 2 dollar,<br> you only get half a meal. If you only pay 1 dollar,<br> you will only get a quarter meal. We're just so programmed by the education system,<br> by the society we live in,<br> where everything has a 1unit as a numerator,<br> but we uses the denominator(fiat currency) to buy. It's time to break that conventional thinking. We do not limit to a physical product that has a 1 unit price tag anymore!\n\n# Screw the conventional thinking,<br> time to unleash the numerator\nIt the modern era,<br> you don't need to understand the concept anymore. You will just need to remember one thing,<br> when there's nothing to referred to,<br> refer to the denominator. And the denominator does not need to be on the left or on the right,<br> make sure it's at the bottom. Once again,<br> we need to look at our #steem wallet.\n![image.png (https:\/\/cdn.steemitimages.com\/DQmeR88MkQjK5sZmmWye9rF1uBecjYp7TkYffZVCr1wefWi\/image.png)\nIt's always BUY STEEM or SELL STEEM in the context. If you put the STEEM into the denominator,<br> and SBD into the numerator,<br> automatically you will be able to see the idea of where the digits came from.\n>![MG5aEqKFcQi7V5gYDHZmv4k3eyosSPTm1kJw9Ybr32MaEjKkpoYEMpbMX22xkfBqRVFqr1Htbr2PVdRdx8dBxgN7NP1zNChvW.jpg (https:\/\/cdn.steemitimages.com\/DQmS5v75AFkapb7ahv4y1e5WfeCD1AnkVjLAsvFdiQ242DA\/MG5aEqKFcQi7V5gYDHZmv4k3eyosSPTm1kJw9Ybr32MaEjKkpoYEMpbMX22xkfBqRVFqr1Htbr2PVdRdx8dBxgN7NP1zNChvW.jpg)\nhttps:\/\/static.coingecko.com\/s\/coingecko-logo-white-3f2aeb48e13428b7199395259dbb96280bf47ea05b2940ef7d3e87c61e4d8408.png\nPrice feed brought to you by [@coingecko (https:\/\/www.coingecko.com\/en\/coins\/hive_dollar)\n\nLooking at the above mind fuck chart,<br> if you have 1 of SBD,<br> how much STEEM can you buy? In this case 0.860614 \/ 0.180708 = 4.762456STEEM you're getting back. If you have 5SBD? Which means 5*0.860614\/0.180708 = 23.812282STEEM.\n\n# Summary\nSo far,<br> we have been covering numerator and denominator for 3 episode already. I am trying to share with you how to break yourself free from the conventional fiat way of spending,<br> which is the price tag. In crypto world,<br> both consumer are seller has a price tag by themselve,<br> do not ever stuck with the 1 unit price tag. Read the trade board,<br> put in your denominator,<br> and start to earn by VOLUME. How many BTC do you want? If you tell me $100 worth of BTC,<br> fine I will get to the exchange,<br> throw in 100 bucks and you get your 0.005BTC. But if you tell me,<br> your denominator is BTC and you require 0.005unit,<br> then I will have to pay regardless of spending 150 bucks or 200 bucks. If you still have question about it,<br> kindly leave me a message at the comment section so I know what do explain on the next episode. I do not wanna go to the moon all by myself. I wish to bring as many people as possible.\n\n---\nPrevious Episodes\nPart 2 [here (https:\/\/steemit.com\/hive-167922\/@davidke20\/steem-talk-understanding-crypto-trading-episode-2)\nPart 1 [here (https:\/\/steemit.com\/hive-167922\/@davidke20\/understanding-crypto-trading-episode-1)",<br>"json_metadata":" \"tags\":[\"steem\",<br>\"crypto\",<br>\"cryptocurrency\",<br>\"teammalaysia\",<br>\"coingecko\",<br>\"investment\",<br>\"trading\" ,<br>\"image\":[\"https:\/\/i.pinimg.com\/564x\/ed\/ef\/e4\/edefe480e264985077e352ad5df865e9.jpg\",<br>\"https:\/\/cdn.steemitimages.com\/DQmeR88MkQjK5sZmmWye9rF1uBecjYp7TkYffZVCr1wefWi\/image.png\",<br>\"https:\/\/cdn.steemitimages.com\/DQmS5v75AFkapb7ahv4y1e5WfeCD1AnkVjLAsvFdiQ242DA\/MG5aEqKFcQi7V5gYDHZmv4k3eyosSPTm1kJw9Ybr32MaEjKkpoYEMpbMX22xkfBqRVFqr1Htbr2PVdRdx8dBxgN7NP1zNChvW.jpg\",<br>\"https:\/\/static.coingecko.com\/s\/coingecko-logo-white-3f2aeb48e13428b7199395259dbb96280bf47ea05b2940ef7d3e87c61e4d8408.png\" ,<br>\"links\":[\"https:\/\/www.pinterest.com\/pin\/224335625164717286\/\",<br>\"https:\/\/www.coingecko.com\/en\/coins\/hive_dollar\",<br>\"https:\/\/steemit.com\/hive-167922\/@davidke20\/steem-talk-understanding-crypto-trading-episode-2\",<br>\"https:\/\/steemit.com\/hive-167922\/@davidke20\/understanding-crypto-trading-episode-1\" ,<br>\"app\":\"steemit\/0.2\",<br>\"format\":\"markdown\" " |
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