How To Convert HBD To HIVE
I have been asked on multiple occasions about when is the best time to convert Hive Backed Dollars (HBD) and it can be quite a confusing one! At the moment, you only really get HBD from post or comment rewards on Hive posts after 7 days from posting but what you do with it after that is an open playing field.
The idea of HBD is to be a stable coin pegged to $1 USD but it seems to fluctuate around depending on a variety of factors. If you wanted to play the game, you can always buy HBD from an exchange or on HIVE's internal market below $1 and wait for it to go higher seeing as it's designed to be $1 always. However, I would rather convert it to HIVE, power it up and put it to work myself so this my approach to HBD.
PeakD's Conversion Tool
When you log in to to PeakD, you can find the conversion tool in the "Hive Backed Dollar" section of your HIVE wallet. If you don't have any HBD, the dropdown box will be greyed out but if you do, then click on "Convert to Hive".
Then you will see a dialogue box pop up which will tell you more about it, how much you want to convert to HIVE and away you go!
What It Does
Once you have started the conversion, it's all done by the blockchain and takes 3.5 days, after which, you'll get about $1 USD worth of HIVE for every 1 HBD you converted. This is all based on what the witnesses HIVE price feeds are over that 3.5 days and the median value is taken as the conversion factor between HBD and HIVE. You can read more about it as you are doing the conversion.
When To Convert?
As always, it's up to you but I usually keep my HBD until the price of it goes below $0.90 before activating the conversion. If the aim of HBD is to always be $1 then you'll likely get a bit more HIVE by converting than by using the internal market. When HBD goes above $1.05, I go to the market and exchange it in to HIVE which is a bit faster than converting and I think I get a bit more HIVE for my HBD!
Daily Posting
If you can get in to a habit of posting or commenting daily (which isn't always easy) then it's possible you'll have a constant stream of HBD coming from post/comment rewards so converting can be a nice way to increase your HIVE stake. This is what I do to make the most of the compound interest effect!
What's your approach to converting HBD or do you have another method? Did you know about this feature in PeakD? Let me know in the comments below!
Take Care
Nicky
P.S. you can bookmark this post @traciyork :P
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I give this post 2 THUDs up! 😂
Lol, THUDs for checking it out P2P!
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I either do the automatic convert or I just trade in the market
Yeah, that's it really. Guess it depends on how quickly you want the HIVE!
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If only we could get Hive backed donuts 🍩 now that’s something I could happily convert my HIVE into
That makes my American fat-soaked heart happy!
Lol American runs on dunkin’ right?
Its funny, here in Bawston everyone calls it 'Dunks but for some reason they didn't like that and called it Dunkin. I think that's a stupid name, Dunks sounds way more catchy lol
LOL! Truthfully I read all your comments with that accent, it’s like rewatching the movie “the departed” Everytime I see your comment
I do like Dunks better or dunkies, I can picture getting a core fee at the corner dunkies being a thing
THE DEPAHTED lol
Maybe we are just used to Dunks but it's annoying they didn't listen to us. I guess they actually just got sold to some other fast food chain, maybe red lobsta or something I forget but I was surprised, the cheap donuts and coffee apparently isn't as profitable as it seems.
LOL! I’d love to see dudes from Boston and Ireland having an argument that should be hella entertaining!
they tried launching dunkin here my dad had shares in it, it lasted about 2 years before it shit the bed and left along with baskin and Robbins
We do have Krispy Kreme but only a few stores! I never tried any of it though
We actually have a pretty decent amount of people straight from Ireland working as bartenders in the city, or probably did work, given these snowflake restrictions can't let them work anymore. A lot of them said they loved Boston because of how similar it is for them lol
Look what I found today 😛 giving it a try for the first time
Lol, you really would be stacking those sat...urated fats then!
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I guess I never thought about waiting for the price to dip below .90$ before converting. I was wasting a fair amount of HBD for a while by not converting, rather I would sell it on the market regardless of the price. Now I save it all and wait for the days where it goes above 1$ which seems to happen once or twice a month lately, then I unload all of it! Cool tidbits here though. Posting often certainly helps keep the stream flowing lol
Yeah that bit about the $0.90 is something I found after digging deeper and speaking to others that have been converting HBD for a while and it makes sense actually. Like you, I was just going to the market and getting some HIVE but was actually losing a little bit each time. Not that we're talking hundreds or even tens of HBD at a time but I guess it adds up over time!
Agree about posting often, I'll probably be taking it easy after the end of this month. Have been taking part in @traciyork's hiveblopomo challenge where you post every day for a month. It turns out I also posted every day in October too and it will be time for a rest I think haha!
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Wait, does this mean you want me to stop
pesteringasking you about this every month or so? Say it ain't so, NH - say it ain't so! 😲 😉 🤣And thanks for the
ninety ninth millionexplanation. I think I've got it now. Maybe. 😂Hahaha! Not at all TY, you can ask me any time (but I'll probably point you to this thudding blog from now on)! XD
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Before now, I just convert my HBD to give straight from the hive market. the option provided by peakd frontend is also inviting but waiting for 3.5 days seems far especially if you need the hive on an urgent basis.
Also about the timing, I think it's a cool and nice way of getting more. Waiting for when it's a bit above 1 dollar seems cool and will make one get more..
Thanks for the insight, I am sure it will come in handle
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Yes, that's the good and bad side of converting, the 3.5 days wait but I guess it really depends on situation. If you're converting HBD every day then you'll have a constant stream of HIVE anyway but if you need it instantly then use the market.
No worries mate, glad you found it helpful!
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