Why you should NOT convert your SBD to STEEM. (You really shouldn't, you are losing money)

in steemit •  last year

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We earn 50% Steem Power (same value as Steem) and 50% SBD when our post gets paid out.
So when we look at dollars they should be the same, right? WRONG! There are some wrong calculations and you are losing out on some valuable Steem! @papa-pepper Brought this to our attention a few weeks a go, so big shout-out and thanks to him!

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The Problem:

Look at this picture of a payout:

Screenshot_1.png

It looks fine at first glance but when we look closer and do the math this is what we get.


SBD Price.jpg

4.078 SBD x $1.66 = $6.76

Steem Price.jpg

1.964 SP x $2.00 = $3.92


$3.92 / $6.76

That's not 50/50!

So if it's 50/50 shouldn't the numbers be the same or at least similar? The problem comes in where Steemit calculates the Value of Steem Dollars at around $1.00 each. Not the actual market price.

SBD 1.00.jpg

Let's see if it works out this way: 4.078 SBD x $1.00 = $4.07

$3.92 / $4.07
That is closer to what we would expect from a 50/50 payout.

Test 2.png

The Solution?

Instead of converting your SBD to Steem (this takes 3.5 days) , go sell it on the market (almost instant). Trust me this is easy.
Let me show you.

Step 1:

Go to your wallet, click on Steem Dollar and then Market.

To market.jpg

Step 2:

Enter the amount of Steem Dollars you want to sell. You can change the price you want to sell for, but this might make you wait longer. I suggest just selling at market price. You are still making so much more than actually converting your Steem Dollars to Steem.

Market 1.jpg

When you Steem Dollars get sold, it will automatically be shown in you wallet under Steem.

That was easy right?

So instead of making $7.99 we made $10.68 for that post. That's like 25% more! So go ahead and sell trade on the market.
You will get the hang of it in no time! =)

Update: Price is currently quite low, you will get so much more Steem than when this post was created.

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So many Steemians are not aware of this. You could help them out by resteeming this post and help educate the newer users.

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Hey @scrooger

** Apprecited Your Work.. I am very much impress **

A big Thanks

I would like to request you please keep posting this type of valueable content for the community of steemit as this platform is growing up day by day .. I would request you that you must support new steemer like me and other .

I am in love with one of my post as a senior steemer I need your Honest feedback regadding that . If you get time from your busy life and write your comment upon it . It will be really apprecited ..*

If I missed I do Apoligize for that ...

Lots Of Love For Future Posts

Bitcoin Secrate

Waiting for feedback on post

Regards Sophia Olive

image

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I checked your post! Nicely done! You are doing well and need to keep it up. Only thing I might have some critique on is just a few spelling mistakes here or there. If you use CHROME browser it will spellcheck for you. Other than that, cool post =)

Thank you for making that "easy".
This doesn't have to be rocket science, but quite often I feel as though I need to contact The Rand Corporation for instructions regarding this entire endeavor.

As such, I think I'm taking the track of, "I just love the intelligent people on this platform, and if I make a few coins doing it, all the better."

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If you need any more help let me know.

On another note, I have noticed you are upvoting a lot. I suggest reading this regarding Voting Power. If you vote too many time too fast it has a negative effect on your Voting Strength https://steemit.com/steemit/@scrooger/voting-power-101-how-to-vote-when-to-vote-when-to-stop-simple-and-easy-explanation

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nods
@denmarkguy had a bit of a pow-wow with me and reminded me that it's not quite the same as Crackbook ... erm, Facebook.

I'm not entirely sure what the algorithms are and how the system works at ye ol' steemit central, and I have a sneaking suspicion that I'd like to put to rest (with verification and validation) that there isn't something shady going on with some of the posts that I see in "trending" making loads of cash that are crap in comparison to others.

Sure, I know ... they got in on the shizzy early. They have loads of followers, etc. etc ... but ... still.

I'm skeptical.

In the meantime, I shall continue to champion good people such as yourself and "upvote"
"Resteem" and follow.

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Thanks for the resteem and follow! Yes I know some posts aren't always what they are cracked up to be. Some users have been here a really long time though and know how to work the parts of the system that is workable.

There are bots that can vote content. I'm not saying it's a good thing, I'm also not saying it's a bad thing.

Many things to consider and try to understand. Dig deeper mate. It's fun to learn about this interesring platform =)

This post received a 3.3% upvote from @randowhale thanks to @scrooger! For more information, click here!

100% Vote at 86%

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Lol, I am doing an experiment... Thanks for the vote @freshman... Uhm, I kind of need you not to vote on my comment. lol

Testing something. Please don't Upvote this =)

100% Upvote at 70% Voting power

When are they going to simplify this process? When will anyone who knows what the fuck their doing actually sit down in plan simple fucking terms and explain if this is a real deal or some scam were getting involved to steal your ideas? I'm seriously doubting steemit to be a legit site at the moment since it seems people want to use bots and spammers to make a quick buck on here while the rest of the simpletons get a nickel for their efforts with real organic following.

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Steemit is still a young. Scam? No way! Theycare working on it as they go and the people behind it are very respected in the crypto community. Yes, our newbies are having a rough time getting started. Nothing hard work can't take care of. I know there is a lot of development still to be done and when this will happen I am not sure... There are voting bots, some do good and some not so good. Take your time to study more about Steemit and the people involved. There are so much to learn. There are the few out there who post absolute shite and get huge payouts. This will not be a long term strategy though. Keep at it and post quality posts. You will be rewarded in the end.

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Yet they argue its bad for newbies to upvote their comments, posts, etc. Why is that? Why shouldn't I upvote my efforts? Anyone else disagree? You shouldn't upvote your hard work? Because that is what taking advantage of the concept here? But voting bots and vote cliques and people using multi accounts to just pass steem back n forth is perfectly legit ideas that you should go with right?

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Why shouldn't you up vote your own post? I thought that was the default, anytime I post it automatically up votes.

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I know the system is not perfect and there are lots of votes passed around for things that never get read or viewed. Running a massive site like this there are loads of things to control. It's not easy. Slowly but surely they will figure it all out and make it more fair. People will always find a way to make money no matter what...

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@scrooger great post as usual. You are so knowledgeable and a fantastic teacher. Thanks so much for sharing :)

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Always a pleasure! Everything we learn here makes us better and more profitable. Good luck and have fun!

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We are on the bleeding edge of blockchain innovation. Don't fret if things do not fit the designers' plans. The market chaos is constructive, not destructive. Embrace it.

It was very useful guide for me. Thanks.

So we keep the SBD....

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We trade the SBD for STEEM then convert to STEEMPOWER

Amazing post and an eye opener, i'm new on Steemit and would never know this. Thanks again.

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Thanks, i have read it already! i was voting at random and thought it's good though i felt i shouldn't until i saw that post.

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Coolbeans then! =) have a good one mate!

I don't convert my SBD to STEEM. To me, its not worth it. I rather rack up my money.

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Whatevee you like. Remember. Steem is a cryptocurrency that fluctuates. If the recent weeks has shown us anything it's thatcthe market is booming. More steem power means your votes will be worth more. Much much more. Just my 2 cents. The choice is up to you.

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I just earn my Steem power by upvoting other people's posts and comments.

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I guess that's ok. You will earn a lot more if you have more steem power though

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meep

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MEEP!? Meep? Meeeeep =)

MEEP meep meep

Meeeeeeeep.... xoxo

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@ionlysaymeep!!!!!

How about that interview? Say meep here if yes.

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@ionlysaymeep

Say meep here if no go for the interview.

@scrooger thank you for this
I have just learned a new stuff about steemit.
But do yoi think that this can be corrected or is it how the system is designed ?
Thanks

@arizonawise.

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I know it was designed like this at 1st but I am sure there are corrections that they are working on

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okay..thanks

Very good information @scrooger , I will keep it in mind

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You are welcome mate!

I never thought of it. Thanks for sharing

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Most welcome! Glad it can help out a bit

Awesome man thanks for the tip! Very useful

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Sure thing. Have to help out where we can =)

Very good pointers for the new crowd just getting hang of things!

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Thanks mate! Looks like am gathering a following of newbies and starting a bootcamp =P

Helpful, I'm getting my first pay from my firstt 2 posts about $150+, but I'm kinda lost lol. Doing the internal market thing, hopefull I won't lose money.

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Promise you won't lose. You will make more for sure! Just follow the steps =)

This is the kind of articles that make this platform so beautiful! Keep it up!

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Thanks. It's not extremely new news but I like taking what I have learned and sharing with my followers. Glad it helped =)

But why is the current price the 1.52 on the internal market? Seems like you would be better off transferring your SBD out to local currency and then buying Steem. Right now Steem is $2usd and sbd is $1.77.

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That is definitely an option. I know many users do it like that. For the sake of this post I was trying to keep it as simple as possible.

I was wondering about this so very timely and helpful post. Big Thanks!

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Most welcome friend! Glad it could be of help

More steem to us :)

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Yes! Pay it forward. Let your friends know =)

Great post @scrooger, thank you! It's important to point out details like this for the community. By the way, isn't there a warning when you try to convert SDB to Steem instead of selling them on the market?

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Yes there is a warning, don't think it states that the conversion will be as low as it is though... Thanks for the kind words mate! Have a great day!

Thanks for the tip, man.

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You are most welcome mate!

Interesting. Thanks for sharing this!

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Always a pleasure and happy to help =)

A very valuable tip! Thanks.

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Always mate! Glad you found it useful =)

Oh my god! Million thanks for your post, I have never noticed about it. At the begining I just simply make it 100% steem power. But just now change to 50/50. So, it seems like to waste a lot before..But that's fine, just treat it as a experience..Anyway, thanks a lot!

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I did exactly the same. Was neat when I heard about this. Just had to share!

i am totally lost with the intent of this post, since you are talking about selling the steem dollars instead of converting them to steem.. but the only difference I am aware of between those two options is that the 'conversion' just uses the average price of steem over 3 days, rather than using the current market price when valuing the steem.
"Instead of converting your SBD to Steem (this takes 3.5 days) , go sell it on the market (almost instant)."
isn't the outcome here basically the same in both cases? in that you started out with some SBD and ended up with steem?

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When converting it normally converts to a lot lower amount of steem. The outcome is the same. It's the end result and quantity that's the same. Trading on the market vs converting is faster and more profitable.

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Isn't the price from the conversion process just an average of the price of steem over 3 days? It could theoretically result in a higher or lower price than the current price at any given moment. That said, I agree that it is better to sell it in the market instead of using a conversion, since you have more ability to decide on the end price.

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As far as I know and what other users said, you always get more fro mthe market. You can test if you want =) could be interesting

Now, everyone should know about this ;)

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I agree! Makes a big difference in profits. Spread the word!

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Resteemed! :)

So I didn't get this from the post - is it better to own SBD or Steem in the long run? Is the SBD rate likely to go down?

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Taking steem and converting it to steempower is best for long term curation and upvote rewards.

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I know but if you want your steem or SBD ready available to withdraw, which is it best to keep it in, Steem or SBD?

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I would go for Steem.

Thanks... this is super helpful!!!

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Happy to help mate!

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I followed your advice and went to the market and converted My SBD for Steem for the very first time. And it was quite easy. Thanks again 👍🏻

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I know right!? Awesome mate! Now you can make more Steem! Good luck!

Really good post! Helped me a lot! @damiradrovic check it out :)

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Always a pleasure! =)

Just tried following your instructions but get a "Transactions broadcast error" message. It could just be that I can't follow simple instructions so I've attached a screenshot showing what I was attempting to do.

BuySteem.jpg

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You have to put the 11 amount in SBD. Then it will work out how much steem you will get

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I thought it might have been something as simple as that. Like I said, can't follow simple instructions. Thanks for replying so quickly.

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Sure thing mate. Cycling at the gym and commenting as I go. Good luck and have fun!

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It worked !!!
Paid 11.746 SBD for 8.326 STEEM
Sitting in my wallet now !
Thanks again. Enjoy the workout.

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You are most welcome! So much faster right? Thanks mate!

Thank you for the information

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Welcome! Glad it could be of use! =)

Resteemed it. This should be for all to see.

I already converted some sbd to steem by selling it on the internal market and then power it up. Good to see a confirmation that I did the right way :)

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Awesome sauce! Thanks for the resteem!

If I'm taking my sbd and buying steem on the internal market, is that the right thing to be doing?

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Depends on what your plans are. For a long term investment I would HIGHLY recommend powering up. To power up you need Steem so yes trade that SBD for Steem

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Yeah that's what I've been doing, taking the sbds and buying steem on the internal market then powering most of it up

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Smart move =) I'm doing the same!

What is the best way to convert SBD to steem power?

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There are few ways. I like the internal market because it's fast and easy.

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I will try it next time

In my understanding it is good, as you have shown, to convert them in the internal market. The problem you have shown on first step is that converting them (using the convert option) gives you 1 dollar of Steem for every SBD.

Thanks for helping the community with showing this.

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@okean123 I try my best. Things I learn and pick up along the way . My other post of helping the newer users to understanding voting power has received great feedback and I know many benefited from from it. So I'll keep at it. Thanks.

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Thank you mate, for this valuable information, worth reading post as always.

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Much appreciated! Thank you =) High five to you!

This is a great post @scrooger ... this isn't something I knew about and it's definitely good advice with some posts of mine being paid out soon!

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Whoohoo! I love helping Steemians! One for all and all for one! You are welcome mate!

Congratulations! This post has been upvoted from the communal account, @minnowsupport, by scrooger from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, and someguy123. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.

If you like what we're doing please upvote this comment so we can continue to build the community account that's supporting all members.

Welcome to Steemit @scrooger!
I'm a bot-helper, and I'm created to help. Congratulations on the registration on Steem - you really like it here! If you like me, make an upvote of my comment and follow me. Your upvote will allow you to give more money to new users, such as you. Let's make Steem better together!
I follow you, and to get more upvote and resteem - follow me!
All the money I earn will be donated to charity.
Steem on!

We should never convert SBD to STEEM. We will loose money.
Initial day's of mine, I did that.
Later did the math and came up of what you just explained above :)
Lots of users still might not know, given new people are flooding into this amazing platform. This might help them.

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Good for you for figuring it out earlier! Thanks mate! Have a good one!

thanks for the info, I am still a newbee and trying to grasp all of this in a few days is almost impossible.

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Slow is fast and fast is smooth. Learn at your own pace. Just remember to keep educating yourself for the sake of yourvown success. Good luck and have fun. Thanks mate

Thanks, I'm saving this for when I make any moves, in your post you say "vote, follow resteem and live", are you running for a witness slot or do you mean upvote? I'm trying to sort out the witness stuff...

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I need to update that. Hehe. Not anywhwere near witness voting yet. Just means upvote =)

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Maybe running for a council position in Minnowton? okay glad you cleared that up --I upvoted with the full weight of my 10cents!!! (oops 9cents now)

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Ah thanks. Appreciate it. Maybe down the line in the distant future =) thanks for your kind words. Really appteciate it

thank you for the post it help educate me .

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You are most welcome! It's what I like doing =)

I didn't notice that but I always sell on the market instead of converting from SBD to STEEM. Thanks for bringing this up so more people will be aware of this and increase their chances of not getting hurt from the price fluctuation.

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You are most welcome! =) I try to help where I can, with so many new users there are some basics they need to know

Thank you so much for clarifying this! Since I'm new here, I only just got my first payout and now I'll act on this knowledge. Cheers!

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Just a heads up price is low now! Buy buy buy! You're welcome!

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Thank's for the advice! I will! :)

Thanks a lot I resteemed very clear discription.

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Thanks for the resteem. Just a quick tip: price is quitr low now so buying now will benefit you a lot!

Saved! Haha thank you for this info!

Highly appreciate the tricks for maximising the revenues from the same post ! Keep posting

Resteemed

This is how I've been doing it to "Power Up" a little faster than the 50/50 split. I still keep some of my investment in SBD to "cash out" because my wife won't let me keep doing this if it doesn't start paying a few bills.

Keep that engine pumping!
history-314608_960_720.jpg

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HAHAHAHA! I love it mate! Oh, yes the wife dilemma. I am not married yet but my girlfriend also gives me a bit of a hard time... Soon, when we buy them cool stuff they will appreciate it. Patience.

How long should it take as I have tried but getting nothing as yet

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If this is the case your order has not been filled. Price probably went up. Cancel your order and try again, or wait for price to hit the level you decided to sell at. This might not happen soon. So I suggest you cancel and place your order again. Will be faster and you still make more than converting.

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How do I cancel. Sorry for being a pain

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No worries, in the market if you scroll down it should be at the very bottom. Click cancel.

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I keep getting a message saying transaction broadcast error?

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When you try to cancel? Remember to put the SBD you want to trade for STEEM in the SBD slot.

Screenshot_1.png

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There's nothing to cancel as nothing is going through :(

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If there is nothing to cancel then your order went through and you should have received the STEEM. Double check! The cancel will be under "open orders"

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A very useful post, thank you, @scrooger! That’s how I did it last time I had to power up: sold my SBD on the inner market for STEEM. Definitely more value for the money than 100% SP posts or the built-in SBD => STEEM conversion.

As a new user this confuses me... everyone can cash out on their steem dollars, which they do, which should drive its price down; and isn't Steem the currency investors would buy? driving the price of Steem up. Steem should hold more value, relatively to steem dollars in that case. Yet the opposite is happening. What am I missing?

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Currently a lot of users are selling their steem. Not really investing, thiscis because of thw update where a lot of posts had massive spikes in payouts. So many are selling. Driving the price of steem down. If the price of steemcis going down it's a good time to use SBD to buy more steem

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hmm I see, my premiss concerning Steem was incorrect. Thanks for the clarification

but what we get after we sell sbd ?

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You get Steem. Way more than you would have if you converted.

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and then we can redeem steem ?

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We redeem Steem Power and SBD. The SBD needs to be traded for Steem on the market

Thank you for the post. As I am quite new, I had no idea about this. I will try out to sell my SBD now.

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Hope your sale went well! Glad I coild help a bit

So I do understand that by selling on the market you get more steem then by just converting internally. What I am wondering is, if I go to https://coinmarketcap.com/currencies/steem-dollars/
it seems that it's somewhere worth even more than in the market here on steemit. And I alos can buy SBD on bittrex! So if I just want to be invested, should I invest in steem or in steem dollar?

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I would be investing in Steem and then converting into steem power. On the steemit platform steem power offers you a lot of rewards in the long run

SBD is worth more than Steem at the moment, but not if you trade it on the market here. I got 40 Steem for 50 SBD. I'm not that bothered

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Yeah steem has been taking some heavy dips. Let's hope it recovers soon. OMG mate 10k followers! If you resteem a post does it simply explode into flames? Must be really cool habing that many followers! Congrats mate!

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It's taken a while to get here. I get great responses now

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That's really awesome mate! I have been getting most of my followers by helping out the new people. So much they don't know. Just like me when I first started. Will one day be as awesome as you are though. One day... 10k... Drool...

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Dream it and be it!

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That's the plan! One follower at a time!

Nice post.

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Thank you

I've been following this trick myself. As long as SBD is valued above $1, then buying Steem on the internal market will always give a nice bonus to your payouts. But you should never use the convert function. I don't know why that feature is even included, what it should really do is just place a market order on the internal market as a convenient shortcut. Plus, if everyone is buying Steem with SBD, then it helps support the price of Steem. It's a win-win!

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It truly is a win-win all around. Trying to let as many new users know because why lose money on psts that you worked really hard on right?

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Exactly, spread the word far and wide, everybody needs to know about this!

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Yes I agree, old and new users. Especially because the price is so low now ;-)

Thanks for the upvote mate!

Thanks @scrooger. That's really helpful!

Thank you for this one. atleast I know what to do when i got my first steem lols.

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Cool. Check out I have similar posts that arr great for new users

@aeryn this is what you might be looking for.

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Yeah @aeryn, this is the motherload, trust @sumsum.

Good post, I think I came across another post with similar idea, but the wording was very different. In that post, it suggested us to turn SBD to Steem (Not Steem Power), and do it in Internal Market.
You're doing the same thing, but the title is "Why you should not convert your SBD to STEEM?", I am little bit confused.
And also, your tutorial said to sell SBD in Market, but the diagram shows buying STEEM from the Market using SBD.... so more confusion....
Would be good if you can clarify for me. Thanks a lot.

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Steem and SBD is not the same. We have two options. We can convert SBD to Steem (less effective) or we can use our SBD to buy steem (thus selling our SBD for STEEM) this way we get way more value out of it. Hope this helps. Let me know if you have more questions

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Thanks for the clarification. Now it makes sense to me.

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Glad it makes sense! Good luck with it! =)

Good post, I did this. It seemed better off and faster too.

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Indeed faster and better! Thanks mate, I will add that it's faster in the post. Thanks for that

And congratulations on your 400 followers, mate!! Let’s see how long it takes us to reach the next milestone! ;)

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Yeah! Saw I just hit it! Thanks mate! Won't make a post about it though. Maybe at 500 again. Don't wan't to spam my followers with those posts the whole time =P thanks a lot mate!

Or maybe I should... hmmm... hehe

WHERE WERE YOU A WEEK AGO, thank goodness for the discord.However this how to is awesome, so don't stop doing them. :)

I am still confused @scrooger! How do I know the last steem price? It's not shown in my wallet and still I cannot figure out why I then should have more Steem, instead of Steem Power? And third, at the base I want to sell my steem dollars to get cash, if I always reinvest in steem, when is the best moment to withdraw cash?! Also keeping in mind the call to invest cash in steem, now that the price ist good, as @mindhunter did last week. There's so much to learn about Steemit, still!

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For steem price simply search on google "steem price" will show you what it is currently worth.

Steem power is for long term investing and good for when you are curating (upvoting good content) because you will get rewards for it. The more steem power you have, the bigger your rewards. Do you want to convert your steem to cash and withdraw it or do you want to re-invest in steem?

If you van to re-invest in steem then I suggest simply selling your Steem dollars on internal market for steem.

As for best times, keep track of the prices for SBD and Steem. If Steem goes down, buy steem. If SBD goes up, sell it for steem,

Thank you, @scrooger.
So how to increase steem power more and more.
Make a post, comment and vote...?

Thanks! I'm replying to bookmark this, hopefully I'll be able to find it later (can't resteem) :)

Just the information I was looking for. Thank you. I think I am to late to resteem but I'm going to attempt to share. Here goes :)

I realise that this post is ages old. Ijust stumbled across it and found it very helpful. Thanks!

This post has been ranked within the top 25 most undervalued posts in the first half of Jun 26. We estimate that this post is undervalued by $69.15 as compared to a scenario in which every voter had an equal say.

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