Mathematical Equation: Sell Splinterland Card or Convert to DEC?
The Problem: Splinterland cardholders need to decide when it is better to sell a card versus converting a card to DEC.
Possible Trigger Scenarios:
- need fiat
- choose to take gains and invest in other forms of crypto
- want to convert unused/unwanted Splinterland cards to upgrade more desirable cards
The Mathematical Equation
There is a variable that you will need to get first in order to determine if it is better to sell a Splinterland card on the market versus converting directly to DEC: the current price of DEC
To find the market price of DEC, go to Steem-Engine and check the latest USD value.
Now that we know the current price of DEC (the price standard we are going to compare against), we next need to find the price and DEC value of the card that we want to sell.
In this example, I am determining whether or not I should sell an Undead Minotaur. The BCX price for this card runs between $0.013 to $0.015.
The DEC value for an Undead Minotaur is 15 DEC per DCX.
|Comparison Constant||=||Price per BCX||/||DEC Value per BCX|
Once we know the comparison constant for the card we want to sell, we can make a decision as to whether or not selling the card is more beneficial than converting it to DEC.
Things to Consider
- Selling a card can take time
- A card may not sell (especially if it does not competitively price)
- DEC conversions are instantaneous
- DEC conversions are practical if you want to purchase new Splinterland cards or level up
- When converting to DEC you may or may not receive the current market value of the card in USD
- There are fees associated with selling cards (typically 5%)
Going the extra mile
I have not attempted this but consider the following. If the constant comparison value of a card is less than the current price of DEC, it may be advantageous to buy a card with Steem or SBD and then convert the card to DEC.
For Example, if the Undead Minotaur was being sold for $0.01, then the constant comparison value would be 0.000667 (which is below the current value of DEC). This means that I would be able to "buy" 15 DEC (by purchasing the card and converting to DEC) for less money than I could have directly purchasing the DEC.
The decisions we make about selling cards and/or converting cards to DEC are dependent on our short and long-term goals. Regardless, it is important to realize that sometimes converting to DEC can be a better investment decision. Please note that this post is not intended to be financial advice. Always do your own research and only make decisions that match your personal goals. Never invest money you cannot afford to lose.
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