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RE: My Week 1 SBD Conversion Results: 18.615 SBD | 7.446% ROI
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.