Why I Sold 174 Steem to Buy 232 Steem Dollars
As mentioned in Steem price update post, which I did when Steem was starting to catch momentum today, I wanted to use the price rise to my advantage. That's what I think I have done.
Steem went up to $1.53 today before going down to $1.4 at the moment with an upward run again. Just a few days ago, Steem was priced just $1 or even below that, which is extremely low I think but not impossible to happen due to uncertain Bitcoin market.
The scrollshot below is of my wallet and its recent history. Look at it and I'll explain what I did and why.
You can see that I paid Steem to buy Steem Dollars in multiple orders. I sold a total of 174 available Steem to buy 232 Steem Dollars. It's a bargain that has its risks but I think I know what I am doing.
Why This Trade?
Recently, the equation was; 1 Steem = 1 Steem Dollar. It meant that I could buy 174 Steem by spending 174 Steem Dollars. Now, I've sold 174 Steem to buy 232 Steem Dollars at a rate of nearly 1.35 SBD per Steem. That's 33.33 % more SBDs than previously.
What I really wanted to do was to sell Steem when it's high and buy it back when it is low again. My plan is to spend these 232 Steem Dollars, and the ones I earn from rewards, to buy Steem when it goes back to near 1 SBD/Steem.
That's how I would be able to increase my Steem by 30 % whenever such a price becomes available. I'll put an open order immediately to make sure I get to buy. It needs patience and there's all possibility that Steem may not go back so low ever again.
But it's a risk I wanted to take. What do you say?
Hey. 30% on your money isn't bad at all... ;)
With how volatile everything is, I bet you get your Steem back and then some.
Good luck to you! :)
Thanks a lot. The part where 30 % materializes is still remaining. October is going to be a month of confusion so lets see what it brings to the market. I think I'll at least get the 33 % more Steem that I want. That's the best way to make more Steem in absence of big rewards from posts.
I guess there are 2 sides to this. If the cycle continues it's good for you flipping the interchangeable currencies within Steemit, however it would be nice to see it stabilize and grow at a slow and steady rate ;-)
PS: I did trade my SBD for STEEM back when you posted about them being close to even - thank you for that head's up post.
There are two sides indeed and I did say that it is a risky bargain that I am have decided to undergo. November is a month of confusion and market may crash again leading to the new bitcoin fork issue. If not earlier, then November may be the month the plan materializes. While SBD is pegged to remain close to $1, Steem may go even lower in the $0.80's like it did in July. I hope to make it work.
Most welcome and so happy that you have 30-40 % money right now than you otherwise might have had by keeping SBD.
Yep - I do appreciate your posts on trading.
I have been following along with the price of STEEM since your post - seems to be settling nicely again for your return trade. That's great.
Thanks for your post! Now everything is a bit more clear for me.