A Mistake in Converting Steem Dollar to Fiat Currency
"I never made the same mistake twice. I make it three, four, five. . ."
Haha. Joke only.
Today I made a mistake converting my Steem Dollar into Bitcoins then into Pesos, through the use of BlockTrades and Coins.ph combo. The mistake is on me. I realized it only when it was already done. Touch move as they said in chess.
I wrote it so it will not happened to you.
Here what's happened:
I made two staggered transactions of converting Steem Dollars (SBD) to Bitcoins (BTC) to a fiat currency i.e., Philippine Pesos (PHP).
1. I cashed-out 1.5 SBD to pesos. 1.5 SBD is 0.00013458BTC. . . and when converted that is PhP75.07.
2. Then I cashed-out another 3.0 SBD. . . 3.0SBD is 0.0059007BTC . . . and that's PhP329.03.
Now here where it all goes wrong:
The amount that I first cashed-out is PhP75.07. The second one is PhP329.03. Add that up and you will got PhP404.10.
Now we assumed that this is OK, right? Because normally when we convert dollars to pesos, we get the same amount whether in a single or multiple transaction.
Like for an example, we go to a money changer and ask them to convert $1 to Pesos, and that's PhP50. Now, we go again to that money changer because maybe the clerk is pretty (or for girls: the guy clerk is a hunk like Empoy) and ask them to convert another $4. 4x50 = and you get 200pesos. Bottom line, you got 250pesos for those two transactions.
But it's different when it comes to cryptocurrencies.
Remember that I got PhP404.10 for my 4.5 SBD, exhanged in two transactions.
But what about converting that 4.5 SBD in one transaction?
Here's what it will be:
582.97 pesos!!! against to what I got that was 404.10.
I don't know what exactly happened behind this. Maybe it's about transaction fees. But that's ok. The important thing is that we all learn from our mistakes. . . or from mistakes of another.
Maybe we can prefer that the strategy is to accumulate Steem Dollars and then exchanging them altogether in one trade. But more importantly, we must take note of the timing for the conversion of cryptocurrencies. The rule of thumb is that when crypto's value is up, it will be converted to fiat that is high too.
Any thoughts please?
Hi Rigormortiz
as i read your post its good to do transation when crypto price is high and fiat price is down u can make good amount of money at that duration so before doing do catculate that part and proceed well I loved your post do visit my post also
https://steemit.com/health/@maujmasti/vitamin-chart-of-different-foods-part-1
Thanks I catched u from Dicord app do catch me also there
Amjad Siddiqui
@maujmasti
yep, thanks.
this makes sense. It is more advisable to convert one time big time than to do it separately with different amt.
Thank you for this. This is helpful :)
Oh btw, when you are transferring SBD to your coin account, what are you using? is it peso wallet add or your BTC wallet add?
Hi. Thanks for reading. :) I'm using Peso wallet add (through Coins.ph).
Can you give me advice if which one is the best to use when converting SBD?
Thank you in advance 😊😊
i use this method:
HOW TO WITHDRAW CASH FROM STEEMIT - PHILIPPINES
https://steemit.com/philippines/@rigormortiz/how-to-withdraw-cash-from-steemit-philippines
I mean, if I will convert my SBD, would you suggest to directly convert it to peso (using peso wallet address) or convert it to BTC (BTC wallet address)? And when will be the best time to convert your SBD to any of those?
Cool Post. Since you got the bitcoin tag do you have a prediction for Bitcoin over the next few days? Also followed you for future posts :)
no one really knows where the market will be good or bad. . but there are markers.
Transaction fee is too high. 1.5 would be 75 pesos only when u buy in blocktrades.
But 1.5 sbd is around 248 pesod when u convert it frm sbd to php. (Coingecko.com) its a converter only.
yep. i found a solution to avoid transaction fees. you may check out my new post. thanks
Ok thanks