Trading HBD For Hive : Time to take out some profits
Hello Hive.
Here comes the opportunity to take out some profit trading HBD for hive.
Times like this are often very rare and only the patient ones can benefit from this.
Precisely if you have been lucky enough to save up some HBD for these times.
The value of hive around $0.6 Cents and below is not a common experience and sometimes you get to see that only once throughout the year.
Earning HBD when the price of hive is around or above a dollar and waiting to convert it at this times bring such large outputs that will make you bite your fingers if these slipped you.
These are truly the times I wish to have saved some HBD to partake in the interest from this conversions.
Make some quick conversion of HBD to hive, get as much hive from this, and then repeat the process when the value of hive gets higher.
This will increase the amount of HBD traded and can be returned safely to savings again.
Although its really okay, you can't be everywhere at the same time with crypto, one had to make a decision about what type of trade to particularly engage in and stick to it.
You can't trade all the crypto token at the same time unless you have plenty bags of dough go go round.
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Aww right time to convert from HBD to hive but my all HBD in savings so can't take this golden opportunity. Happy for you Monica, be more powerful dear 💖
Maybe you can try it with the earnings you’ll be having in the next few day.
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You need to know the difference between converting and the internal market.
The convert process guarantees that HBD will return one dollar in HIVE. The convert process keeps the peg.
Converting HBD to HIVE works as follows. The process takes 3.5 days and charges a 5% fee. The process will start by burning your HBD. 3.5 days later, it will create $1 USD worth of HIVE.
Convert destroys HBD and creates HIVE.
So, lets say you had 10 HBD the price of HBD dropped to $0.90 USD. If you sold the HBD on the market; you would get only $9.00.
If you convert it to HIVE. You would get $10 in HIVE minus the $5.00 fee.
You should only use the convert HBD to HIVE button when the price of HBD is under $0.95.
There is a convert HIVE to HBD. This process is similar. It will destroy HIVE and create HBD for a 5% fee. You should only convert HIVE to HBD when the price of HBD is greater than $1.05.
When HBD is between $0.95 and $1.05, it is best to use the internal market. If the price of HBD was $0.98 and you converted it to HIVE, you would lose some money and waste 3.5 days of interest. Here is the internal market.
https://wallet.hive.blog/market
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Better than encouragement, a little mini class on when to convert vs when to use the internal market.
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The relation between HBD and HIVE is quite complex. I think it is good to occasionally post articles (or comments) about the difference between the market and the conversion process.
Arcange publishes financial stats which show info about the HBD conversions. Ausbit has a page about the HBD peg and the ratio of HBD to HIVE. The creation of stable coins is actually quite complex.
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Oh that's for this, it explains alot and I get the point now.
Thanks for sharing.
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This is nicely explained thanks for sharing this.
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Thanks for the information.
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Thanks for this explanation.
Exactly. The payout for this week can be converted and maybe the price of hive wouldn't have gone so high by next week.
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Sorry, out of BEER, please retry later...
This used to be the way I used to work my HBD - but now I just lock it in savings and leave it alone.
This strategy was my favorite but now I’m trying to stack that HBD.
Good luck.
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Saving HBD is good as well, the 20% interest is a huge return.
Best wishes dear.
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HBD to Hive is very enticing now, am getting tempted to doing the same but knowing me I will power it up!
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This looks like a great idea but that is a fear behind it, what if you need money and it's all in hive and it is still low.
Hi @monica-ene, your post has been upvoted by @bdcommunity courtesy of @rem-steem!
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I just bought some Hive from part of my HBD, hopefully, I will smile at the end 😏🤗