My Steemit Internal Market Strategy - Seeking Your Comments?
"The markets are always changing, and the successful trader needs to adapt to these changes."
- Michael Steinhardt -
DISCLAIMER:
I really have no market savvy.
If you stopped here looking for trading advice, boy, are you in the wrong place!
Flee!
The Steemit Internal Market (CLICK for an enlarged view)
However, every now and then,
someone or something hits me upside the head with a brickbat and shakes a thought loose.
That happened some months ago when the difference in value between STEEM and SBD had radically diverged. For a short while, you could buy as many as 9 STEEM with a single SBD.
I would never have noticed except that some kind fellow Steemians took note and wrote about it.
So, I took some SBD and bought some STEEM.
Although I missed the peak of the market, I made out fairly well in the exchange.
Part Of My Steemit Wallet (CLICK for an enlarged view)
The internal Steemit market is an amazing thing.
Do I understand it? Not at all. I don't know why it does what it does.
But I have observed the following:
- There are no fees for trading on the internal market
- The market is in constant motion up and down
- Although more often than not, SBD is worth more than STEEM, sometimes the market inverts
Consequently, I've been doing this:
When STEEM is worth less than SBD, I market some of my SBD to buy STEEM.
When SBD is worth less than STEEM, I market some of my STEM to buy SBD.
By see-sawing back and forth in this way, I have been able to gradually increase the aggregate total of SBD and STEEM that I hold. Once in a while, I power up some of the increase in STEEM.
My only costs? Paying a little attention to the internal market moves...
Does this make sense?
Am I missing something here?
I welcome your comments, and Thank You in advance for any insight you may care to share.
~FIN~
P.S. If you have an "in" with anybody at Steemit, Inc. - Would you please ask them to get rid of these damn, extremely annoying "off-website" arrow/boxes? The have, overnight, made Steemit ugly. There are much better solutions.
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Personally, I dont want to hold a lot of SBD, be cause it should be worth 1.00usd...
Hodling Steem is all I need!
Thank you for pointing out one of the risks... Yes, SBD is intended to hover around one...
You are doing exactly the right thing!
Thank you, @meesterboom!
I appreciate your feedback and encouragement... :D
This post is going to help alot of new people, well done. I see you were also wise enough to join in 2016 back when I thought Steemit was too good to be true. Good on you and thanks for sharing! :)
Thank you! Best wishes here on Steemit. ;)
Thanks for the info - I'm a bit scared of this kind of thing but maybe I should be braver :)
You're welcome.
Remember, as I warned at the beginning of this article, I am not a trader, I don't really know what I'm doing, and I wrote this more to get feedback and hear other folks' experiences than anything else.
Having said that, I don't think there's much to be afraid of here... I think the only thing to lose really, with an internal market that has pretty close to zero cost, is opportunity by not trying something.
And, having said that, since writing this, I've been watching the market go further in the "stronger STEEM than SBD" direction than I recall seeing it go...
I've also been thinking about the ability to somewhat automate buy and sell orders, which is an interesting ability the platform gives us... Maybe I'll write an article about that after fiddling a bit. :D
Seems to make sense to me. I guess everyone has different needs at a given time, hence that makes the market. Keep on keeping on!
I think you should help us all out and write a post that says "Ok - now it's time for me to trade my steem for sbd" or vice versa...
then we will follow suit! hehehehehehe
I think you should help us all out. Start a trading fund, make us lots of STEEM/SBD, and charge a modest fee... ;)
Hahahahhahaa ok!!
Step one. Learn how to trade lolol
Interesting, I will look into this!
Pay also attention to the spread, which seems to fluctuate.
I would, if I only knew what that meant...
Could you kindly expound on that advice? :D
Each transaction has a cost. It's called a spread, where the purchase price is slightly higher than the actual price or the selling price is slightly lower than the actual price achieved.
PS:// Pls do check your Discord or Skype.
Thank you for the further explanation.
It was great to talk with you!
I do not concern myself with great matters or things too wonderful for me. I have enough trouble tracking my Visa, lol, but don't let me stop you. Knock yourself out, my friend :)
Hahahahahaha!
I've long thought that I desperately need an amanuensis...
Someone to follow me around, pick up after me, make sure that I'm not overlooking something important or about to do something stupid... I suppose he/she could also manage my finances far better than I can. :D
Nice write up man, I've wondered about this myself, and I always watch out for when you can get lots of Steem for less SBD... I am low on SP, so I Power up a lot.. Some good chat here in your comments as well, which I am learning from..
Fantastic! Glad you're finding some value here, and thankful for all my readers and commenters... :D
Thank you for sharing this because when I would look at the graph that you showed here it was as clear as mud. Now I have a little better understanding of the process. Being a little older (lol) these new markets are difficult to understand. Upvooted and shared.
Thanks so much, Mary. I hope you're doing well. :D
Every day I get a little better. I cannot thank you enough for the way you have blessed me.
I am so glad and thankful to hear that!
I wish you ongoing blessings! :D