What’s up, guys? This is Tai Zen. In this exciting video tutorial, I want to share with you how to read the price of each cryptocurrency.
I get many questions such as What these numbers mean and Why there are 8 decimal places from you guys and my friends. I understand that it is confusing as hell when people say millibit, micro bit or Satoshi.
Therefore, I decided to make this video to explain, once and for all, how to understand the way that you read the prices of a cryptocurrency.
In front of me, on the left side of my screen, here are the current prices from Poloniex exchange. I just pulled up some of the cryptocurrencies that are well-known and some of the ones that I have invested in the past or in the present. On the right side, I have an explanation of what these numbers mean.
When I first got into cryptocurrency investment several years ago, my buddy LeonFu.com and I were always stressed out about how to read these numbers.
For that reason, I’m going to show you a very very simple methodology so that you know how much the price goes up and goes down whenever there is a change.
Let’s start from the basics and from the beginning. When you hear the term Bitcoin or BTC, the unit of measure for a Bitcoin is usually 1 Bitcoin. One Bitcoin can be split up into 8 decimal places like these numbers I have down here.
If you go out to 3 decimal places like this one here, this is called a millibit. Sometimes you hear me say it and that’s what’s called millibit. If it goes out to six decimal places, this is called a micro bit.
Now there are names for the 2, 4 and 5 decimal places as well, but I’m not going to focus on that. In your Bitcoin wallet, these are the two common denominations that you have. You can set your wallet to indicate Bitcoin or display in terms of millibit or in display in terms of the micro bit.
On the other hand, Satoshi is a little bit different. A Satoshi goes out to 8 decimal places like this. So that’s how a Satoshi is written.
That was coined to honor the inventor of Bitcoin, Satoshi Nakamoto. The smallest unit of a Bitcoin is called a Satoshi. Because of that, all of the other cryptocurrencies are also named Satoshi.
This is kind of funny because if you think about it, the smallest unit inside Ethereum should be called a Vitalik or Buterin because Vitalik Buterin is the one who invented it.
The Litecoin smallest unit should be called a Charlie because it was invented by Charlie Lee. The Factoid smallest unit should be called Paul. And Lisk should be called a Max.
But for some reasons, everyone calls it Satoshi, so I’m going to stick with it until that changes. I propose that the smallest unit should be named after the inventor of that coin. However, in this particular case, it’s common for everyone to use the term Satoshi.
Now, on the left side, I’m going to give you several examples so you understand how to read the prices in your head. Before I started recording this video, I copied the current prices of all these cryptocurrencies over here. So the prices over here are slightly different from the prices on the right side.
Let’s start from the most expensive to the cheapest cryptocurrency. For example, we have Ethereum here and it is 02,272,200 Satoshi or I would just call it 2.2 million Satoshi.
Litecoin is worth 863,000 Satoshi. You can round these numbers off. When I talk to my friends LeonFu.com about it, I usually round it off to the nearest hundreds of thousands.
In the case of Litecoin, I would just say 864,000 Satoshi. The same way of reading is applied for the following cryptocurrencies: Factor is 151,000 Satoshi; Lisk is 75,000 Satoshi; DAO hub is 21,000 Satoshi; Maidsafe is at 11,400 Satoshi or 11,500 Satoshi depending on how you want to round it; NXT is 1,100 Satoshi.
New Economy Movement, which is XEM, is 300 Satoshi. The cheapest one I have found so far that is recognizable and popular is Dogecoin, which is 43 Satoshi. I lost about 2,000,000 Dogecoin at Christy when they were hacked so that was the last time I invested into Dogecoin.
These are the numbers that I use as examples to show you how to read the prices. Let’s use Lisk as another example to analyze deeper. At first, Lisk started out at 18,220 Satoshi. Now, take the current price of this now, which is 75,000, and divide it by the 18,000 that you paid for the Lisk during the ICO and you will have 4.16%. It means a 4x return or 400% profit. So that’s how you can tell how much money you made or how much money you lost.
Hopefully, this video helps you guys understand better. I was struggling for a long time then to figure out how to read those 8 decimal places. I wish that they put a comma every 3 decimal places like the way that I have here so that it’s easy for the human eyes to read.
It’s very annoying because if you look at Poloniex, you will see 5 decimal places on the price axis, then 8 decimal places at the top and at other places as well.
I hope that you were able to eliminate some of the confusion from this tutorial. If you like these type of videos, give me a thumbs up and I’ll continue making more video like this. If not, give me a thumbs down and I’ll stop making them.
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From now on, to make things simple, I will just talk about all the prices in the form of Satoshi only because it is easy and consistent.
When we talk about different cryptocurrencies across the board whether Ethereum or Lisk, we can all have an idea in our head of what we are talking. Because when I say something is worth 5 Bitcoins, 23 millibit or 100 micro-bits. It’s just way too confusing so I’m going to stick with Satoshi.
Another reason why I stick with Satoshi is the term millibit. As you can see the amount of Ethereum right here, it makes sense to call millibit. It’s at 22 millibit.
However, the problem we run into is when something like Lisk is not at the millibit stage yet, then calling it seven-tenths of millibit that’s just too confusing for the public. It confuses the hell out of me too.
I’m not one of those Asian guys that are good in math and science like my buddy LeonFu.com. So I want to make sure that I keep things simple so that this caveman brain here can understand it.
So thanks for watching this video guys. I’ll see you guys in the future videos. I had fun while making this and I hope you guys have fun watching it.