The Following is Happening Live...

In case you hadn't noticed, the price of Steem has been very volatile today. There was a great post on the technical analysis of what's happening right now that was posted earlier.

The rapid movement in pricing has created an opportunity for traders to profit - or those who are willing to temporarily invest Bitcoin in the Steem ecosystem to cost-effectively boost their Steem Power and/or earn a profit with some smart trades.

Note: I am not a regular trader, so please excuse the lack of technical jargon in this post. I just saw an opportunity to earn a profit on some large market distortions described below.

Equilibrium of the Market

If you trust that one Steem Dollar is really worth approximately 1 US Dollar, and that the internal blockchain market will ultimately trend towards reflecting the "real world" open market, there is an easy opportunity for you to profit right now.

The requirement is that you may have to be a little patient - but, if the Steem experiment works as intended, you'll be earning 10% interest on your investment while you wait.

Why do you need to be patient?

You need to wait for the market to return to equilibrium, where the spread between the internal Blockchain market and the open market is minimal.

That way, you can cash out your SteemDollars to Steem, and then Steem to Bitcoin. (Of course, you can cash out your Bitcoin to your local currency of choice, if you so choose.)

Right now, the market is NOT at equilibrium...which means we are awash in opportunity.

How To Profit Big - Right Now

Right now there are about $9,976.54 worth of open buy orders on the Steem Internal Blockchain Market that are priced ABOVE the $3.077 buy price that I just purchased Steem at from the open external market, Blocktrades.

(Note: The open market buy price may be even lower now - if it is, that really just means there is more opportunity for more people to profit. Or a big whale or two.)

If you look in the upper left-hand corner in the image above, you'll see the "Last Price" is $3.374 from the Steem Internal Blockchain Market. In other words, buyers are willing to pay you $3.37 Steem Dollars per Steem that you have to sell.

Yet...you can purchase Steem on the open market via Blocktrades for only $3.077 each.

If you do the math, it's pretty easy to see...

You can make a profit of $3.374 - $3.077 = $0.297 per Steem

You just need to wait for the internal Blockchain market and the open market to return to equilibrium, when market pricing is more stable!

YES. YOU NEED TO BE PATIENT! It might take a few hours...it might take a few days, it might even take a few weeks. But it will happen, and when it does, you can cash out your entire investment, if you so choose.

To be crystal clear, here's how to do it...

Step-By-Step Instructions

1.) Follow my instructions on this post to make your first purchase of Steem using Bitcoin. Be sure you purchase Steem, NOT Steem Power. Wait for one confirmation for your deposit to be confirmed.

2.) Click the 3 lines in the upper right-hand corner and click "Market."

3.) Sell all of your available Steem to the highest available bidder on the internal Blockchain market - as long as the price on the Blockchain is still higher than the price of Steem on the external market, of course.

4.) Be patient and wait for the market price on the Blockchain to return to equilibrium with the market price on the open market.

5.) Once the open market price and internal Blockchain market price for Steem are roughly equal, use your Steem Dollars to buy Steem back on the internal Blockchain market.

6.) Sell your Steem for Bitcoin to pocket your profits - or - Reinvest your profits back in the system by Powering Up your Steem Power (SP).

I Put My Money Where My Mouth Is

As you can see from my profile, I invested 0.5 Bitcoin into this opportunity to purchase 108.429 STEEM. Next, I sold all of it on the Steem Blockchain Market in exchange for about $365.84 in Steem Dollars.

In summary - I spent $328.02 worth of Bitcoin to purchase $365.84 in Steem Dollars. Now I sit on my holdings and for the market to stabilize - and I get to earn interest while I wait. Once it does, I can cash out (if I so choose...) and decide what I want to do with my $37.82 in profit.

Pretty easy money if you're willing to be a little patient, right? But here's the kicker...

You Can Do This Again...And Again...

You know what? I'll absolutely scale up even and contribute far more Bitcoin next time there's volatility if this trade works as well as I expect. In a nanosecond.

The trade I just made was nothing novel - it's all predicted in the Steem White Paper. It's an easy way for me to invest in the ecosystem I've become addicted to, and hopefully earn a small profit.

I'm genuinely blown away by how amazing this platform is. Bravo!

Disclaimer: Please trade at your own risk and only invest what you can afford to lose. I am not responsible for any losses!