Is there a chance to return all of the lost money invested when the chart goes back up?

Let say, for example, I invested $3 to buy 21 TRX (Tron Tokens), usually a token under Ethereum platform but still working the same as other altcoins when the value goes high, where the price is around approximately $0.14 per TRX. A week later, the token price is raised to $0.21. the following days later it dropped back to $0.14 and later $0.13 which is below the total amount of money I've invested.

Here's the worst case scenario: the price of TRX dropped to $0.001 after several days and definitely all of my investments are gone (30 TRX is equivalent of $0 instead of higher than $3 in return). Take note that this token/altcoin is legit and while taking better changes to improve while the investors are still counting on it. Now, the price of 1 TRX is now suddenly jumped to $1 after another few days.

The question is this: is my $3 invested after couple of weeks will be dropped to $0 and still $0 even after when the price of token drops to $0.001 and raised it back to $1 or not?

David Dimalanta

Posted 2018-01-10T02:56:20.063

Reputation: 103

Your math doesn't make sense - if the price of TRX is $0.001 then the value of 30 TRX is $0.03, not $0. But regardless, unless this token works in some very unusual way, you still have 30 TRX, no matter what their value is at any given moment. If the value later goes up then you can sell them for whatever you can get, and maybe turn a profit. (Big "if", of course.) – Nate Eldredge – 2018-01-10T05:05:45.633

@NateEldredge I see. What I'm thinking is that...let say you invest 30 TRX since the price of 1 TRX is $0.14. Next, the price of 1 TRX drops to flat $0, then the total no. of amount is 30 TRX = $0. When it raised the price per 1 TRX is $1, is 30 TRX is still equal to $0 or not? What is the way to prevent form losing your money you've invested when preparing to fly to the moon? – David Dimalanta – 2018-01-10T06:22:09.493

1haven't seen any currency falling to flat 0, but if this happens, your math is correct, then your 30 TRX will be 0. However, if at a later time the price goes to 1 dollar per TRX, then you can offer your 30 TRX, and get the 30 Dollars for it. Leave the conversion rate of dollars aside, think only in the TRX as such. – pebwindkraft – 2018-01-10T13:20:07.693

2As @NateEldredge pointed out, you still have 30 TRX, no matter what their value is at any given moment. If a cryptcurrency drops to flat $0, then it has gone bankrupt, and is unlikely it will be revived. – Chak – 2018-01-10T21:43:06.377

@pebwindkraft " Leave the conversion rate of dollars aside, think only in the TRX as such " Then nothing to worry while hodling. The value is still equivalent. – David Dimalanta – 2018-01-16T03:08:37.273

5I believe this question should be closed because it is about basic arithmetic and finance, not specific to cryptocurrencies. – Pieter Wuille – 2018-03-10T14:38:02.403

Answers

The value of TRX relative to the dollar fluctuates, as do all cryptocurrencies. Whatever the price of TRX relative to the dollar when you sell TRX is the dollar amount you receive no matter what happens to the price between when you acquired TRX and when you sell it.

Dr.Plastics

Posted 2018-01-10T02:56:20.063

Reputation: 249

Is that mean that if 1 TRX drops to $0, then it is $0; and when the 1 TRX raised back from $0 to $1, then the value of 1 TRX is now $1? Just relative, no permanent losses. – David Dimalanta – 2018-01-16T02:52:08.313

1Correct. If you don’t sell your TRX when it’s value is $0, then you haven’t lost any money. This is an unrealized capital loss. If you wait for it to climb back up to $1 and then sell it, you have $1. If you paid $0.14 for 1 TRX initially, you made a profit of $0.86 known as a realized capital gain. – Dr.Plastics – 2018-01-16T03:09:53.103

Say you buy 1 TRX for $0.20 on monday and on tuesday the value of 1 TRX drops to $0.01. If you sell that 1 TRX on tuesday, you will receive $0.01 in return. So you lost $0.19.

Let's say you choose NOT to sell on tuesday and hold on to that 1 TRX you bought on monday for $0.20. Suddenly the price goes up to $1 for 1 TRX on wednesday. You make your move and sell that 1 TRX and receive $1 in return. Your profit is $0.80.

The price in the middle (tuesday) doesn't matter. It's just the buy price (monday) and the sell price (wednesday).

Lexus123

Posted 2018-01-10T02:56:20.063

Reputation: 58

So there's no loss, even if set to flat $0 before raising it back to higer? Only equivalent whenever it changes before selling? – David Dimalanta – 2018-01-16T02:59:00.407

How old are you, David? You shouldn't be in this crypto space. – Lexus123 – 2018-01-19T23:18:35.950

I'm 27. I started crypto gaming since 4 months ago. – David Dimalanta – 2018-01-21T08:34:49.600