Authors Can Obtain a 30%+ Premium on Steem Backed Dollars (SBD)
Good news, everybody!
For those of you who are new to the cryptotoken, distributed ledger, or blockchain world (these all are nearly synonomous, depending on the implementation, although there are very few non-blockchain tokens), there exists different exchanges where you can CASH OUT your hard earned Steem Backed Dollars (Ticker: SBD).
A simple exchange is run by (current) witness blocktrades at blocktrades.us.
Ignoring OpenLedger options (sorry, guys! you can find out more about OL if you are interested), the other two options that exist are two popular cryptocurrency exchanges: poloniex and bittrex.
Premium Prices on SBD
As of the time of this writing, there exists a shortage of SBD which has inadvertently allowed for the speculators (traders and the like) to drive the price of 1 SBD beyond its peg.
Currently, the price of SBD is somewhere around 1.30 - 1.40 USD, a premium of 30-40%!
Wow! That means you can receive more on your post than you expected.
In fact, there are two different ways that you can achieve a premium. I will describe both and show you how to calculate which way is best via (semi-contrived, but currently close to real world) examples.
- Sell SBD directly on Poloniex or Bittrex, OR
- Buy STEEM on internal exchange and sell on Poloniex or Bittrex.
We will assume, as of now, a price of 675 USD / bitcoin.
Selling SBD directly
As of the time of this post, there is approximate 15 bitcoin supporting a price of .002 btc / SBD (approximately 7600 SBD worth), which is approximately a 34.6% premium on your SBD.
Similarly, Bittrex has 1.5114 btc support (around 800 sbd) to .002 btc (once more, 34.6% premium).
Instead of choosing the 'convert SBD to STEEM' option (which, incidentally uses the median price feed for conversion rate, which is currently much lower), one could consider either of these two exchanges as options instead.
However, there is an additional alternative ...
Buying STEEM Directly on Internal Market and Selling on External Exchanges
Right now, due to the high premium of SBD, users have been selling STEEM for SBD on the internal market, forcing the STEEM internal market to be way down in comparison to the external market.
This means that there is a premium going the other way, as well.
One could buy 4000 STEEM for about 12400 SBD all the way up to 3.170 SBD / steem (average around the prices of 3.10 SBD / STEEM). This could then be sold on either Poloniex or Bittrex.
Note that current prices of STEEM on the two external exchanges is approximately .0068 at the time of this writing. That means that 1000 STEEM could be purchased for about 3100 SBD and then sold for 6.8 btc, or approximately 4590 USD. This is an increase of 48% on the value of your SBD! Note that 4590/3100 is approximately 1.48.
Conclusion
How do you determine which is best for you? Unfortunately, this takes a little bit of mathematics (but not too much!) and is a matter of simple ratios (i.e. fractions) and multiplication. Nothing more, nothing less.
All you do, in order to determine the best option, is multiply the amount of SBD by the best rate on either of the
two exchanges (possibly a combination of both) and compare this with how much STEEM you can buy on the internal exchange and then sell on either Poloniex or Bittrex.
Once you compare the ratios of your gains, you can see which one is best.
Keep on Steemin'.
buy and hold !
Hodl it!
HODOR!
Amen.
We have a social platform that has shown huge rewards to individuals posting great content.... And some that is met skeptically. If there is interest in buying steem dollars above retail value...... I would say it's an interest in steems future beyond today's value. I know the sbd is a rewardable portion that can be cashed out, and that is a great avenue you've posted out to maximize that opportunity. I would think they're seeing the opportunities of tomorrow. I held onto my bits like a miser. they had value to me beyond money.... Within hours of discovering steam I converted them. It wasn't a ton.... My up vote won't buy you a pizza yet..... But everything I get for quite some time goes back into this. Your voice has value.... How about your opinion on the subjects?
Well, there is a 10% APR interest (current) on SBD. I don't think that justified the higher rates we've seen on the markets. In fact, I think 10% APR would indicate a lower trading value than approximately 1 USD / bitcoin.
It could be the case that traders speculated on Poloniex and Bittrex do not understand that this is a pegged currency and that the premium prices (at least in my opinion) are unjustified. If they do not realize / understand these mechanics, then the current market valuation makes sense.
I can't see any other reason for it otherwise. Naturally, people will want to move out of SBD to pay for bills, lock in gains, etc. With the total amount of SBD that is created per day, I would expect that these prices should reach parity much closer.
However, it is important to note that there is no arbitrage opportunity, or nearly none, in buying sbd or steem off an external market, selling on the internal exchange for the other token, and then selling the new token on the external exchange.
The very same remarks and compliments I just expressed towards @clevecross
apply to this comment of yours, and I'm sure after posting this reply and looking
through your posts/comments I will maintain that stance and follow you as well,
always granting my endorsement where appropriate, and upvotes every chance I can.
Thank you for this comment, and thank you again for proving that there can be
much more to this entire platform than a literal #circlejerk of posts redundantly
stating nothing more than how great steemit it, just for the sake of money-mongering
by idiots spamming the very same content, for the very same goals.
My apologies for effectively all of this reply's content being off-topic, but there is never
too little time to honestly thank the damn few people on this site right now for doing
exactly what we all should be, and for the purpose and sake of furthering eachother's
understanding and/or knowledge, and not in the hopes of it reaping rewards for ourselves.
Signed,obfuscate-meVisiting my family and not reading responses deeply for interpretation. I hope I didn't hijack content of your post. Was not intent, just a thought at the time from an enthusiastic guy
I'm selling Steem Dollars for Steem on the internal market and then using it to power up!
@complexring Hey. I was thinking the same thing a couple days ago. Do you know how to calculate how many SBD's are being created? Also, does the price of SBD going up affect how many SBD's are rewarded to content creators?
Ok so let me get this straight...
If I buy steem with steam dollars, then sell it for steam dollars on an exchange, I can come back here and buy more steem and rinse and repeat?
How does the proceas work exactly? I am going to check these exchanges now and run soem numbers. You rock for posting this intel!
Thank you for posting. QUESTION: should steemit let us steemers advertise using steem? Be sure to tell everyone you know to come vote here at: https://steemit.com/steemit/@kingtylervvs/if-steemit-ever-does-decide-to-advertise-there-is-only-1-way-it-could-work-in-my-opinion-debate
This is a democratic community decision.
Upvote the #steemengine for in house steemit poster ads!
THIS.
This is why I follow you, verging on stalking you, haha.
Always great insight and/or information, wrapped up in fully explanatory, yet easily
understandable manner to anyone with a decent grasp of the English language.
Signed,obfuscate-meUnfortunately, cryptocurrency traders are much more shrewd than that. You'll find that they are guys that would trade on futures markets and stock exchanges if regulation didn't make their practices illegal.
Read this post for an understanding of what's happening.
I agree with you. Anything I earn on Steem I keep in Steem. I am in it for the long run. I only invest in tokens i see long term value and use in. I am not a speculative trader at all. I buy/earn and hold. Now if I could only get my stolen Steem back from the hack I'd be dandy.
first official STEEM LOTTERY https://steemit.com/lottery/@willytrader/first-official-steem-lottery
Wish I had had some insider information on when Poloniex was gonna add Steem. That's the beauty of crypto, wouldn't even be illegal.
People could have easily surmised this from the blockchain and the transfer of keys several days ago.
https://steemit.com/steemit/@liondani/speculation-i-have-strong-indications-that-we-will-trade-our-steems-on-poloniex-the-next-days-maybe-the-next-hours#@liondani/re-splus-re-liondani-speculation-i-have-strong-indications-that-we-will-trade-our-steems-on-poloniex-the-next-days-maybe-the-next-hours-20160715t115816002z
That post was a nice scoop
I ask please that you see my post https://steemit.com/crowdfunding/@webocel/58kd3g-my-dream-needs-your-vote-crowdfunding, with your vote I can put my business and thus have a job and be able to feed my children. With just a few clicks you can change my life. Thanks in advance. Nicolas
I think that as indicates the following information, Poloniex will operate soon with steem
The rich list of steem
STEEM
1 steemit 1184119.770 STEEM
2 bittrex 548986.873 STEEM
3 poloniex 337331.245 STEEM
DÓLLARS
1 poloniex $158417.246
2 bittrex $61024.792
You can find this information in the link here:
https://steemit.com/steemit/@kirtash85/top-10-richlist-users
Poloniex is a pretty fair exchange if you ask me! It would be legal but they truly have respect for their users.
#Poloniex truly is the most honest, reliable, and respectable #exchange by far,
and without question. Both to have ever existed, and AFAIC, to ever exist.
Signed,obfuscate-meTrue
And that's why people continously get SFYL'd with fake volume and spoofed bid walls.
i would have love to jump on it if i knew too. that is why an oracle is really needed for this game
Hold some and sell some.
Have to sell SBD for now and buy it back later. Because SBD always should be around the one dollar level.
its time to HODL (but thanks for the info anyways)
Wow, $414.41...
you words are like spun gold
Either a bullshit pumper or a bagholder, I've written a lengthy post about it, no one cares. Up to them. In the 8 years since crypto began nothing changed.
the problem of making community is that if you do not have enough money to prove it works, do not believe.
Several people are trying to bring people to steemit, but as we have little steempower little steemdolar and have no pay stubs, people ignore us, other whales, not usually give up vote to anyone.
Even if one were generous enough, I assure you, the community would increase from us considerably.
Sorry for my bad english, i speak spanish and portugues
I think you'll find that many people are interested in helping to increase the community. Unfortunately, I do not know Spanish, but there are plenty of people who are bilingual and can help with translations and expressing the ideas that non-native speakers have in order to grow our community. Find them out and seek collaborations! Most here are quite friendly.
You speak Spanish and Portuguese? Please tell your friends that the post you just made got you $9.47. The issue right now is the interface to Steemit isn't very good. It's hard to find quality posts through the noise.
this is a good moment, i have now 24 steemdolars, it work with this.
I Believe the persons, they will believe
thank you for writing. STEEM is trending up right now, so its win win!
Good luck! Looks very promising!
BTW, should steemit let us steemers advertise using steem?
Be sure to tell everyone you know to come vote here at: https://steemit.com/steemit/@kingtylervvs/if-steemit-ever-does-decide-to-advertise-there-is-only-1-way-it-could-work-in-my-opinion-debate
This is a democratic community decision.
Some hater on your blog goes around downvoting people comments for no reason lol.
The internal market is a hidden gem. Thank you for opening my eyes to it. That's where I'll be selling my SBD from now on. :)
SBD can also be exchanged on http://www.bitsquare.io "The decentralised bitcoin exchange."
SBD liquidity is low.
Try Bitsquare today!