Exchange Rate Basics - Fiat/Crypto & Crypto/Crypto
Hey all, I have a question to pose about exchange rates: If you're looking at a pair of crypto-crypto, does the fiat price chart matter, or only the crypto-crypto pair chart, or both?
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Example: GNT does not have a USD fiat pair, so to trade it you have to go USD -> ETH (or BTC) -> GNT. Now you're involving (2) separate exchange rates together, USD/ETH and ETH/GNT.
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How do you track those to prove you've made a profit or loss?
On Bittrex, ETH/GNT is 0.0020 meaning 1.00 GNT = 0.00200 ETH, and on Coinbase ETH is trading for ~$225.49. So that means the fiat price of 1.0 GNT should be ~$0.45098 ($225.49 * 0.00200).
Is this the correct way? The charts for ETH/GNT and USD/GNT are so different. A high on one could be a low on another.
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