Greed is good, according to fictional character Gordon Gekko in the iconic film Wall Street. To some extent, greed is indeed good -- the capitalistic drive encourages producers to produce and innovators to innovate. They should be rewarded for their efforts, while those that sit back are entirely worth their due as well.
But in cryptocurrency trading, excessive greed can become a detriment. Due to the fact that blockchain assets -- in particular, altcoins like the Steemit cryptocurrency STEEM -- move so quickly, missing out on an opportunity could potentially mean that the door is shut for quite a lengthy period, if it ever opens at all.
Greed stymieing STEEM trading was fully on display just 48 hours ago. A few days prior, I wrote a post on Steemit discussing the SBD to STEEM ratio. I stated that due to the severe deflationary shock of SBD, more Steem dollars were required to buy one STEEM coin. However, when the ratio hit or approached 1:1, this is historically an ideal time to buy.
cheap as chips."Over the trailing 30 days, STEEM did exactly that in late June and mid-July. For one Steemit dollar (or close to it), I could acquire one STEEM cryptocurrency. To borrow a phrase from my Steemit friend @djohan, STEEM was "
bitcoin soft fork. As of this writing, one Steemit dollar will net you 73% of one STEEM. Just a few hours ago, the STEEM conversion rate was only 67%.Was it ever! After @djohan made those remarks, the Steemit cryptocurrency took a bounce up, then soared upon news that a temporary negotiation was reached with the upcoming
Those that were anticipating an even bigger discount, let's say a conversion rate greater than 100%, might be sorely disappointed. To avoid these scenario in the future, I always like to buy-in in strategic increments.
What does that mean? Before the SBD to STEEM ratio does anything, I already have a target in mind. For example, if the ratio hits 1:1, I will buy 100 STEEM coins, period. I will then keep some SBD in my wallet in case the ratio becomes even more favorable. If it does, I buy more. If it doesn't, at least I am 100 STEEM richer.
This is a much better strategy than waiting for a magic target that may or may not arrive. Those that were hoping to exceed the 100% conversion are now left with nothing. Even worse, they may be emotionally committed to getting it right at the 100% rate, which again, may or may not arrive.
So put aside any Hollywood fantasies -- people rarely get the markets right absolutely spot on. It's far better to win in chunks than to win nothing at all.
Thank you for mentioning me in your blog. I am famous now. lol
Haha, for sure! I'll do it again when I'm actually famous on Steemit! :)
thanx for ur sharing iformations @bullishmoney
You're welcome...thanks for reading! :)
Good Information..
Thank you! :)
I hope I am not that greedy:)) just joking, to the point..Thank you for your work and fresh thoughts.
Greed is good, but sometimes, it can get the best of you in trading! :)
It's great to see the markets rebounding already, prior to August 1st. People are realizing they don't to sell anymore at those low prices... they just want to buy again!
Yeah, I personally think that the August 1 "doomsday" date is overplayed, but we'll see what happens...I'm fairly optimistic!
I'm with ya man...
Great to hear, thank you! :)
He is REAL!
I'm sure there are real people who have his name!
I have this plan...
It's called...
Give it two more weeks... i see a bad day coming on friday for all cryptos :)
Thanks for the advice.