Should you wait to convert your SBD to Steem Power?

One of the most common Noob questions on Steemit, is how do I convert my SBD to Steem Power?

Of course, you first need to ask yourself if you really want to lock up your SBD as Steem Power?

You see, when you write content, you may have noticed you can select a 50% SBD and 50% SP or 100% STEEM Power payouts.

If you select the first option your payout amount will be split between SBD and SP, and sometimes STEEM. And for now, this is the best option although this won't always be true.

Did you know SBD is supposed to be pegged at $1?

Yeah, that's why it's called the Steem Backed Dollar or SBD for short.

And, this pegging mechanism is built into the code base but the developers didn't expect it would trade higher than $1 so we've just been waiting for it come back down.

So what does this mean for you?

Well as you can see SBD is on a steady downward trend and if BTC keeps falling the way it has been lately you can expect SBD to fall below a dollar really soon. And when it does reach this level the system code will try to keep it pegged at $1 whilst the value of STEEM could continue to fall.

Of course, there's a lot of 'if's' in that last paragraph but if SBD does reach a dollar and STEEM falls below this level it will be a great time to convert your SBD to STEEM and then ultimately to STEEM Power if you choose this path.

In fact, any time the price of SBD is higher than the price of STEEM is a great time to convert your SBD because the ratio of SBD/STEEM would be better than one-to-one.

But it's more likely this will happen after SBD reaches $1.

However, in the meantime, you can use that SBD to use the bid-bots to upvote your content to give you a little more exposure.

All the big accounts on the trending page do it so why shouldn't the minnows do it too?

Upvoting is always an ethical dilemma around here, but it's becoming more common practice, so do what you're comfortable with.

And as a result, you'll convert some of that SBD into SP naturally during the rewards payout and also receive most of that SBD back as a content rewards.

The downside is it's locked away as SP but you can always power down to turn it into liquid STEEM but this just takes a while.

So the best time to convert your SBD into Steem Power is when the price of SBD is higher than the price of STEEM.

And the higher it is the more Steem Power you'll make.

If you need a tutorial on how to convert and power-up your SBD, then check out this Steemit tutorial by the @sndbox team.

It goes into more detail about trading SBD for STEEM using the internal market and then how to power up your STEEM.

Just remember to wait until the price of SBD is higher than STEEM to maximize your Steem Power.

Rule of Thumb:
SBD Price > STEEM Price = more SP when converting.