As long as SBD is above the $1 mark, you will lose money when using the Convert to Steem button. Back when it was less than a $1 converting to Steem was a profitable trade. Now the profitable trade is to sell your SBD on external markets. I use Bittrex.
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Thanks, but why is it trading above 1 USD? This just makes no sense to me...
There are mechanisms that are supposed to keep it near $1. Earlier you would have gotten 10% on a Steem Dollar if you held it. That kept the demand up. And for a long time, payouts were in Steem and Steem Power. Now payouts are in Steem Dollars in hopes that there will be selling pressure on them. But it seems speculators are doing a lot of buying. But in the meantime, if people are doing the math, SBD can be very profitable if you know which direction to trade them.
And currently RIGHT NOW, the most profitable thing to do is to sell them on an outside exchange.
When the price goes back down, the strategy will change.
I'd suggest to do a post on this, but, I don't know, it's nice to have the edge on the market, too ;)