Trading between SBD and STEEM
Seems like there's money to be made here...
The other day I was checking things out on the Steemit market, trading a little bit of SBD for Steem, when it occurred to me that a little bit of day-trading, just between these two currencies, could be quite profitable with enough volume.
Now, me, I'm just trading small quantities, but I could imagine someone trading large numbers of SBD for Steem and vice-versa, could make a tidy profit.
So I'm going to conduct a little experiment. Feel free to tell me what you think. With a little bit of Steem-backed dollars, being that they currently stand at around a value that is around 6 or 7% greater than Steem, I can buy some Steem. Then, I can wait a little while for the margin between the two to close, or even for Steem to supersede SBD. Then I can simply trade back into SBD. Wait for SBD to rise, rinse and repeat. Ultimately this is what day-traders are doing, just with a bunch more coins.
Being that the two coins don't move in strict unison with each other, you would think larger scale traders could make a significant sum doing this. What do you think? Waste of time? Or is this a no-brainer and everyone has been doing this and I've just now realised this could be profitable? Share your thoughts.
As far as I understood SBD should be at 1 US$ theoretically. So if SBD has a value above 1 US$ you should sell SBD. On the other hand SBD won‘t go much below 1 US$. STEEM in contrast can have every value. To find the right value for trading SBD back and force is probably difficult and I don‘t know so much about trading. I‘ll stay with posting my nip-peeks for you 😊 @peekbit
See that's the thing. SBD does not have $1 value. Right now, it's around $2.25 USD, but Steem is worth $2.09.
Now, Steem and SBD fluctuate in value. Say, tomorrow, Steem recovers more quickly than SBD and goes to $3 while SBD gets to $2.80. I can now buy SBD with my Steem for a profit. Then I just wait for SBD to leap-frog Steem and trade back again. You see what I'm getting at?
What make the expirement worth wile is that you are not loosing anything on fees.
Very interested in the results!
but maybe - you have sold your STEEM to buy SBD and SBD goes back to the ‚theoretically‘ 1 US$ (and could stay about 1$) and STEEM rises further.
But the idea is nice... 🤗
@peekbit
I don’t know. I’ve tried day trading and it is really hard. I did some on binance, where fees are very low, and still lost money.
But I would definitely recommend swing trading, buying and selling every day, but no intraday. I did a few simulators where I swing traded and was able to get 6% gains in a month in the stock market.
I have been thinking about trading Steem and SBD, and will definitely do so with a small amount.
But trading is difficult, as I cannot find a price chart anywhere for SBD/STEEM.
You can compare their prices on Blockfolio, relative to BTC and USD.