Remember to Convert Your SBD!
For those who are new, or perhaps not remember what its like when the sky falls like this in regards to the price of STEEM, remember that now is the time to be CONVERTING not TRADING your Steem-Backed Dollars.
How to do so:
https://steemit.com/sbd/@timcliff/how-to-convert-sbd-into-steem-using-steemconnect
It's a shame that Steemit got rid of the convert button that formerly allowed for this process to be conducted with ease, but at the time of that decision too many people were getting screwed because SBD prices had risen above $1 and most people had no idea what they were doing.
But now with SBD prices trending around $0.80 as of the time of writing this, it only makes sense to endure the lengthy process of converting SBD into STEEM in order to capture the extra 20% that traders are willing to part with.
That said, bear in mind that there is still risk. The 3.5 day process does leave one vulnerable to a spike in STEEM prices which could offset some of the potential arbitrage gains.
Nevertheless what one should be doing at this point is the following:
- Sell STEEM for SBD on the internal market to get favorable pricing on SBD.
- Convert SBD for STEEM via the aforementioned process.
- Wait 3.5 days.
- Rinse and repeat.
This arbitrage process should allow for optimization of STEEM gains barring a spike in STEEM prices. Only do this when SBD is priced BELOW $1. Ideally, do this in tranches to commit to a rolling average down/up to smooth out price shocks.
