#unitofaccount
unitofaccount
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Why traders count in USDT, not in coinsA unit of account is what you measure value in. For most people that is their local currency: a salary, a rent and a coffee all get compared in the same unit. Money earns the name partly by doing this job well.
Crypto has an awkward problem here. Measuring results in bitcoin is clean for a long-term holder, but someone paying rent in dirhams needs a yardstick that does not move. That is why most pairs are quoted against USDT: a trade today can be compared with one last month without the ruler itself changing length. Choose your unit consciously - a gain in coins can be a loss in dirhams, and the other way round.
💬 When you say you're "up" on a trade, which unit do you mean?
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/unit-of-account
Next lesson: A CBDC is not a stablecoin - and not bitcoin either
Trading crypto from Dubai since 2019.
$USDT $BTC $SOL
#UnitOfAccount #Stablecoins #CryptoEducation
Why traders count in USDT, not in coins
A unit of account is what you measure value in. For most people that is their local currency: a salary, a rent and a coffee all get compared in the same unit. Money earns the name partly by doing this job well.
Crypto has an awkward problem here. Measuring results in bitcoin is clean for a long-term holder, but someone paying rent in dirhams needs a yardstick that does not move. That is why most pairs are quoted against USDT: a trade today can be compared with one last month without the ruler itself changing length. Choose your unit consciously - a gain in coins can be a loss in dirhams, and the other way round.
💬 When you say you're "up" on a trade, which unit do you mean?
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/unit-of-account
Next lesson: A CBDC is not a stablecoin - and not bitcoin either
Trading crypto from Dubai since 2019.
$USDT $BTC $SOL
#UnitOfAccount #Stablecoins #CryptoEducation
Crypto has an awkward problem here. Measuring results in bitcoin is clean for a long-term holder, but someone paying rent in dirhams needs a yardstick that does not move. That is why most pairs are quoted against USDT: a trade today can be compared with one last month without the ruler itself changing length. Choose your unit consciously - a gain in coins can be a loss in dirhams, and the other way round.
💬 When you say you're "up" on a trade, which unit do you mean?
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/unit-of-account
Next lesson: A CBDC is not a stablecoin - and not bitcoin either
Trading crypto from Dubai since 2019.
$USDT $BTC $SOL
#UnitOfAccount #Stablecoins #CryptoEducation
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