Proof of concept: Day-trading between SBD and Steem
It works!
So, the other day, I wrote a short article about a little experiment I was going to conduct. Steem-backed dollars and Steem can be traded freely on the Steemit market platform. The two assets fluctuate in value, so the potential for a little day-trading is obvious, I suppose, but I never really thought about it before.
What if, say, a person were to buy SBD with Steem when SBD dips, and then buy Steem with SBD when Steem dips? One could continuously flip back and forth between the two assets as the market moves up and down. Now, of course, if one had thousands or millions of dollars worth of SBD or Steem, this could be pretty lucrative.
I decided to test this out with a little bit of Steem (about 40.00). I sold the Steem for SBD when the two were about on par with each other in price. Then, I waited for SBD to rise in price. I followed the movement with the handy little Blockfolio app, so I could see their values versus BTC and USD. When the range between the two grew to a difference of about 15 cents, I pulled the trigger and bought Steem back with my SBD. I repeated this process over the course of a single day.
By the end of the day, I gained about... wait for it... 1 Steem (slightly less than 1, actually). Wow. Now, that's not a huge gain, BUT it was a proof of concept. It works out to about 2-2.5% in gains of the traded Steem asset. Keep in mind, 2% daily gains would actually be a pretty darn high success rate. To put it in perspective, a trader with $10 000 in Steem could be gaining $200 a day just doing these simple trades. I had successfully gained on my portfolio doing nothing but flipping back and forth between the two assets - I think I flipped between them a total of 4 times. Having said that, I did not see any large volume trades of that nature in the order book throughout the day, but I might have just missed them.
The point is, there are whales out there who might have thousands of dollars worth of SBD or Steem who could be switching between the two assets without any trading fees, raking in gains on a constant basis. I don't know if there are bots for trading on the Steemit market automatically at certain thresholds, but I would expect there to be. It does indeed seem to be a way one could make profits relatively easily.
Anyway, I just thought I'd update anyone who happened to read about my thoughts on this the other day.
*This is not professional trading advice - it's just my opinion!
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Thats intresting to know im just starting to learn about alk this might give it a try myself once i figure out how to trade. ill sign up to binance through your link thanks for the info x
Thanks @taznbash. I like to play with a little day-trading on Binance. It's entertaining!
I recommend starting by sending a little Ethereum to Binance and just try little trades. Appcoins, GVT, and Tron are positively moving coins lately with important updates happening at the end of March for all three. With the market so suppressed right now, they could be good buys.
Note: do limit trades to protect against sudden swings in prices.
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