My Week 1 SBD Conversion Results: 18.615 SBD | 7.446% ROI
Week 1 Results Are In
I'm calling this a huge SUCCESS
The conversion of $250 Steem Dollars resulted in 120.889 STEEM.
I took that to the internal market, and sold it for 268.615 SBD.
That's a profit of 18.615 SBD. Not a bad return on the investment. 7.446% in just 7 days.
I decided to increase the amount of my conversion this time. I added another 250 SBD and converted a short while ago.
And now, it's time for a little celebration! We might not be in champagne territory, but maybe The Champagne of Beers.
At what rate are your steem dollars converted? how does that work? i have always gone to market and taken the loss..
They're converted at the median average rate over the course of the 7 day waiting period.
This is something everyone on Steemit needs to read. This method can save a lot of authors on the losses currently suffered during conversion and spread the selling pressure at the same time. A+++
Yes and no. This method can produce a profit, but also can (and has in the past) produced losses, or can also produce no gain relative to trading while tying up your money for a week and exposing you to risk. YMMV. Good to be aware of the option and understand correctly how it works in any case.
It does have risks of small differences during crashes or rallies. But risks also exist in having 500k usd worth of Steem and SBD in one hot wallet for polo or trex. I think the benefit of not putting all of the Steemit users "eggs" in two baskets is something worth considering. Also @smooth thanks for replying to me frequently. I have enjoyed our ongoing conversating.
The differences need not be small. If the price of STEEM drops rapidly over the course of the week, or potentially worse first rises and then falls, the results of conversion may be much worse than trading. Also conversion gets you STEEM. If the goal is to cash out then you haven't solved the problem by converting; you still need to trade STEEM for BTC and those markets also have spreads and liquidity issues. I'm not saying it is bad to do by any means, just that it isn't an automatic win over trading. Trading using the internal exchange is another option which avoids any issues with exchanges and their wallets. Currently the liquidity on the internal exchange is rather poor, but I think it will improve.
Hi Smooth, sorry to bother you in this thread,
You might be interested in my new exposing conartists post:
https://steemit.com/scam/@earnest/exposing-conartists-posers-and-liars-the-case-of-lauralemons
Yes @smooth, I agree with what you have said here especially regarding the liquidity. I think that if more people were aware of how easy and fee free the market was to use, liquidity would certainly improve.
Cheers to that!
You get my 2 cents dude, nice going!! I haven't even though about that loop to run. And it already build in a week of waiting, so you can't panic sell 😜
Well done! congratulations
That's awesome. Hopefully one day I'll get some Steem dollars to convert!
Interesting. It seems VESTS are returning around 4.5% per week in Steem Power also, which is another potential way to look at this equation. If you're in it for the long haul, selling on the market and powering up might make the most sense. As for this being a good return on investment, isn't that just a matter of when you sell on the market? If the price had gone the other way over those 7 days, you could have lost money too, right?
I worked on a post tonight which I'm excited to share tomorrow. I wrote a script to analyze the monies flowing around Steemit. I'll be sure to run it by you @bacchist :) :) :)
@lukestokes Exciting, I love data extrapolations. Bookmarked with activity monitor your profile to read it the second it posts :)
If it had gone the other way, I would have lost money, but it would have had to go down rather sharply. The way the market has been undervaluing SBD, there is a 10-20% cushion.
i am hopping to get some SBD to buy steem thanks for your article
cheers