IMPORTANT! DO NOT USE "CONVERT" FEATURE WHEN THERE IS A LARGE PREMIUM IN SBD/STEEM

SBD was designed to be pegged to $1 or very close within the $1 range, however from my understanding based on research within Steemland the peg is a "floor" peg meaning that the feature helps prevent a major decline below $1 but doesn't account for an open market increase in price well above a $1 like we are seeing currently. . .As of this writing SBD is trading around $9. . A full $8 above its intended peg price of $1. . Steem is trading at approximately $2. . .

What does this mean for the Steem account holder?

You can trade your 1SBD for approximately 4.5 Steem using the market feature within your wallet.
Doing so is a viable option if you believe SBD is going to decrease back towards its intended peg of $1 and is the only viable choice if you want to take advantage of the SBD/Steem premium.

Why shouldn't I use the Convert feature when there is a large premium in SBD/Steem?

The Convert feature within the wallet does not take into consideration the open market premium in SBD/Steem.

So, what are you saying @rawdawg, why should I care?

Well, if you use the Convert feature to exchange your SBD for Steem you are only going to be receiving $1 worth of Steem for your SBD, when exchanging SBD for Steem on the market you will receive $9 of Steem for every 1SBD.
You are essentially costing yourself money by using a feature that is available to you but not explained well in a scenario where SBD is at a large premium to Steem.

For our experienced users this may seem obvious, but for those that are not crypto traders please pay attention unless you don't care about giving away money.

From the Steem FAQ's

How do Steem Dollar to STEEM conversions work?
If you convert Steem Dollars to STEEM on the Wallet page, the blockchain will process the transaction over a period of 3.5 days. At the end of the 3.5 days, the SBD will be gone and replaced by approximately $1 USD worth of STEEM tokens. The "approximately 1 USD worth of STEEM tokens" is based on the median STEEM price over the 3.5 days, using the price feeds from the Steem witnesses. Depending on price fluctuations during the 3.5 days it is possible to end up with more or less than $1 USD worth of STEEM per SBD at the end of the conversion.

Is there a way for me to convert my Steem Dollars to STEEM without waiting 3.5 days?
You can exchange them. Visit the internal Market, found in the main menu. There you can exchange your SBD for STEEM in real-time at whatever the current market price is.

Depending on market conditions, users may get more STEEM for their SBD by trading them for STEEM on the internal market, rather than using the conversion.

If you have questions, leave them in the comments. Thanks!