I haven’t been posting much in steemit but I was still very active in the platform. STEEMIT is great for posting and curating contents, but trading in it is not at all less impressive.
While there is some pessimism with STEEM price falling down from the all time high $8 to less than $3 in some markets, I was able to find an amazing way to use this in my advantage.
My Trading account:
I prefer separating my trading account from my posting account. If you check my wallet here you won’t find much so you need to take my word for it.
My Little Experiment
Not so long time ago making $2000 in a one hour opportunity would sound impossible to me, but now it’s very much a reality. This started with a simple experiment a few weeks ago when I was checking out the STEEM market. Ever since this little experiment became successful it started consuming my whole time.
My investment was $161 and with it I bought 26.81 STEEM.
By trading it for about 5 hours straight with no rest I was able to make an extra 83.613 STEEM, $525 net profit (The price was then $6.3)
After my little experiment and more than 70 transactions, the profit opportunity closed and would come back only every once in a while.
Arbitrage Trading
Many people came across this idea but few actually tried to apply it.
When I started making my trades I did understand the simple concept but I wasn’t aware of its name. According to investopedia:
Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.
[source]
In simple words: You buy from a cheap market and sell in an expensive market. Taking advantage of the price difference which can yield exponential profits.
Example: Let’s say STEEM is $5 in one exchange and $5.3 in another exchange
while this may not seem like a big difference to an average investor it is a huge opportunity to a smart trader. You can theoretically double any investment in only 24 transactions between the two exchanges.
For each 24 transactions in ideal market conditions:
$100 gives $200
$200 gives $400
$400 gives $800
$800 gives $1600
$1600 gives $3200
Fast Transactions:
According to Blocktivity.info, STEEM is the highest used blockchain with an average speed of 0.05 second per transaction.
Considering the lightening speed of transactions, $2000 in one hour doesn’t sound unrealistic!
Zero fee transactions
Trading STEEM and SBD has an advantage over 99% of other coins out there.
Transactions are free and this feature is very desirable in any trading.
Any extra fee or delay in transactions would often be the fault of the exchanges which still wouldn't be that much compared to other cryptos.
Markets & Exchanges for STEEM/SBD:
https://steemit.com/market
https://blocktrades.us/
https://bittrex.com/
https://openledger.io/
https://poloniex.com/
https://hitbtc.com/
https://upbit.com/
While this has worked with STEEM & SBD, it can work very well with other cryptocurrencies. Please note that Arbitrage trading doesn't work all the time. It is not a guaranteed way of making money and it carries some risk associated with the trade and the market. Please do your own research and trade responsibly
When Whales Eat You Eat:
Recently I discovered that this doesn't only apply to upvoting posts but also trading. The most profitable trades can be made on whales orders. when you see large orders in the market, this usually means a fixed price for an extended period of time and it is your chance to find exchanges with a lower price and matched volume.
(Notice the volume difference due to one order
Thanks to large orders in the internal market from:
@freedom
@peaceandlove
@leemikyung
@berniesanders
I and a few traders in the internal market were able to munch on them until they were completely finished. In one hour I made 356.43 STEEM = $2000 (the price then)
Why Am I Sharing This?
I understand that sharing this method will make it more difficult to take advantage of later but I found that having a mentality of abundance and selfless giving does always pay off somehow. I hope you find value in this post and be able to make great profits.
I wonder if trading SBD and Steem when one or the other is worth more would work in a similar fashion. Seems like having a bit of both on hand would be needed. I'm sure people are already doing this.
It would work actually, you have to pick either one as your goal and find a good loop. Sometimes the loop reverses but it's definitely possible.
You have to check the price of SBD in STEEM in both exchanges
Thanks @tammymc I hope you can make some profit doing this but try it first with very small amount
This will work no problem as long as you can move steem and SBD between them exchanges but if for some reasons transfer interface does not work (this has happened no so long time ago with Openledger - those [beep beep beep] just switched the gateway off) then you might get your fingers burned 😉
That's true, it's quite risky and very dependant on those exchanges not f**ing things up. Openledger is supposed to be a decentralised exchange, I wonder why they switched it off then.
In my opinion the real reason was to stop arbitrage - do not have much of the track record with them, but the problem is that while "exchange" is decentralized, the gateway is not and at any moment somebody can just pull the plug. So "decentralization" is still controlled in arbitrary manner and may be abused at any time to generate an advantage to the one controlling it.
Ahh... the official reason provided at that time was "technical" just strangely enough this "technical" difficulties appeared at certain very convenient (or inconvenient for some) time 😉
This does make sense, Poloniex has also recently also disabled bitshare, STEEM and SBD with the same excuse "network problems".
I guess they are afraid of losing some volume from arbitrage.
Thanks for the insight regarding DEX
Just read your post on arbitrage trading. Will give it a go with a few SBD.. Tell me.. How well would this work with BTS orders and Bitstamp? I have also seen a difference in price around 3% when moving Steem through blocktrades when picking ether,over LTC and BCH depending on the day.
You need to have live conversion of prices from the exchange you're buying from and the exchange you're selling to in the (two coins you're using) selling price of BTS/ buying price of LTC ... buying price of LTC/selling price of BTS
and you need to make sure the volume is enough for your trade. I'm not sure if Bitshare is on bitstamp. You could try binance, openledger, and poloniex using LTC, BTS or other coins. Just be careful that many people have arbitrage bots setup and it's hard to compete with them.
The STEEM internal market is not filled with bots yet, so it has a better chance for arbitrage
grats with good profit and thanks for sharing with us
Thank you very much @kobusu ... more to come for sure :D
Well done @lifeaef ... You've laid it out very clear and simple and this is a very useful step-by-step guide for the rest of us who'd like to delve in such an opportunity to make some extra income while trading. Thanks for sharing.
No problem at all @nuridin I appreciate your comment and glad to know you found it clear and simple
I've really wanted to learn the trading game, but everytime I try to make a 'smart' move, I ether make very little or even loose some. It takes time and patience. Also alot of attention, to see how the market is going at any given time. Someday, when I can pay it more attention. @ironshield
I had my share of low success and losses but I kept at it until I succeeded in some other big ones. It may not be for everyone but if you put your mind into it I'm sure you can master it
Thanks @ironshield
congratulations thats some good trades you made
Thanks a lot @tattoodjay I was quite lucky with these trades
Yes luck is a big factor
2000$ in one hour. Wow man, that is amazing. I wish I knew how to do that. Your trading technique makes sense, but I am sure it takes some skill to anticipate the price and have a good timing when to buy and sell. I am looking to invest into something like this and your post gives me an idea on how to actually do it. :)
Thank you for sharing and again congratulations on 2000$ in one day. Some people work entire month for that money. :)
@awakentolife it does require constant checking and a fisherman's patience. Plus being able to quickly know the potential price gap ... Some just use trading bots
I'm glad you found some value in my post and I'm really grateful for this trade. Indeed it takes a lot of work to gain it and I was able to gain that with only simple trading technique.
Thank you for your thoughtful comment
I actually know a lot about fishing and the patience it takes. But, my "casting" for trading and how to "catch a fish" like you did on the crypto market is lacking.. hehe. I will have to start working on it. :)
I think It's something to be learnt while applying ... I have come across some difficulties that I can post about in the future but everyone start somewhere and I'm still no where near an expert in trading.
Wishing you luck and success in your trading journey
Wow, I had wondered about this but never tied it. Now I will !
Arbi-trade with caution :D
I wish you great success
been playing with thoughts of trying something like this, well it was more like a question mark, like "what if...?" Now with this knowledge, I actually just might try it. thanks :)
It's something to do small experiments with and if they work then that's fantastic .. I hope you find good crypto gains
Greta to know that you are on top of your game with the trading of steem. That is something I need to get up to speed on, hope you the best and will look forward to more of your trading successes.
$2,000 in an hour could get my attention, and did.
I sure hope there are more successes to be shared
Thank you for your wishes @sultnpapper and glad to have had your attention :D
This is an interessting way to trade. Gave me a good read and some ideas. Many thanks @lifeaef
I appreciate it. I hope you also find it profitable :D
Very well done! Great work. I would love to set up a terminal at my new place and do something similar to help boost my powering up project! Thank you for the tips! I must follow now, lol. Cheers!
Good luck in your project @mental-extract
Thank you!!
Thank you for sharing your trading tips. Maybe @haejin may get some competition. I understand your post more than I do his posts.
That'll be nice but I'd rather not get involved in steemit wars :D
His posts are a bit more technical and you have to do some learning before .. Thanks @sgt-dan
@lifeaef trading non-liquid markets will burn your ass sooner or later. They are for longterm speculation only. But well done on pulling it off this time :). Thanks for sharing what you did.
That's true .. it's a risky business and every trade is a bet that enough liquidity will be there
This post has received a 8.77 % upvote from @booster thanks to: @lifeaef.
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