August 2, 2016 Market Trading Opportunities:

An 18% discount on STEEM is currently available by purchasing through the internal market. There are several hundred dollars worth of opportunity available for trade right now on the internal market for savvy traders. For instructions about how to take advantage, continue reading below.

Let me lead this article with the caveat that if you're a 100% passive investor, and you don't ever want to look at the markets, then this method is not for you. Pull a @berniesanders and just pump it all into STEEM power, move on, and don't look back. I totally get it.

However, if you enjoy actively trading the markets with some level of assurance that you can make a profit on your investment, I suggest you take a just a minute to keep reading.

How To Use Your BTC/STEEM Liquidity To Profit

Do you have liquid Bitcoin or STEEM in hand and you want to get the most out of it? Here's how to profit with your STEEM if you're interested in taking a modest risk.

SMD Is Available at a 10%+ Discount on the Internal Market

If the price of STEEM on the internal market is substantially higher than the price on the open market (when it is 10%+ as it is right now) then I'll sell my STEEM to get a discount on SMDs ($).

I'll then immediately use the built-in conversion feature to lock in my margin of safety on some or all of my available SMDs over the 7-day waiting period. The amount of discount between the market value of 1 STEEM in the open market vs. 1 STEEM in the blockchain market is the margin of safety.

The higher your margin of safety, the higher the probability that converting over the 7-day period will be a net gain. There is a modest risk.

If the price of STEEM has risen substantially (more than 10%) over the conversion period, my margin of safety is wiped out and I'm either breaking even or taking a paper loss on the conversion I just made.

Even then, there's no guarantee of a long-term loss.

If I decide to sell out of my STEEM balance at that time for Bitcoin, I'll likely be able to mitigate my losses by purchasing more STEEM at a lower price after it fluctuates back down. (This is making what I believe to be a very reasonable assumption - that the price of STEEM will occasionally descend, as all markets do, even if the long-term trend is likely upwards.)

Here's an example of how this works with a screenshot:

TL;DR:

An 18% margin of safety on a purchase is a Trader's dream. Actively trading your liquid Bitcoin for STEEM/SMD when there's a reasonable margin of safety (a 10%+ discount on the price of STEEM in the open market vs. the internal on-chain market) can help increase your share of the SP stake and weekly payouts over the long haul.

Here's what @biophil said about this strategy:

This is actually a pretty important service you're providing for the Steem system, because what you're specifically doing is taking SMD out of circulation (buying them) when they're undervalued, and destroying them (converting to STEEM), which will help bring their price up.

Profiting by providing a service to the STEEM ecosystem is hard to beat. You should strongly consider it if you want to take a more active role in boosting your SP and net worth!

If you found this useful, please upvote. And please don't hesitate to ask any questions you have. Thank you!