DON'T CONVERT SBD to STEEM, BUY IT ON THE STEEMIT MARKET!
I recently noticed a fellow steemian using the SBD "convert to steem" feature. While this may be fine (and possibly even advantageous) to do when SBD is trading at a discount, you're literally throwing away money if you do it while SBD's trading at a premium, as it is currently.
Based on the conversion rates he was receiving for SBD he already owned, he was paying almost 29 cents worth of SBD per STEEM, whereas he could have purchased that same STEEM using the internal STEEMIT market at https://steemit.com/market for 21 cents SBD per STEEM. That would imply he was overpaying for his extra STEEM by nearly 40%!
And if you consider he could have attempted to BID for a better price on the market as well, versus outright taking the offer, the savings would be even higher. Furthermore, if he were to continue using the conversion feature since yesterday's continued STEEM run-up from around 21 cents, he'd likely be overpaying by around 50% (since SBD has also become more valuable versus actual US $dollars)! You can calculate this yourself by converting Poloniex's SBD/BTC price back to dollars ( 0.00096949 x 1575 = $1.53 ).
While I'm by no means suggesting anyone to buy into more STEEM at these elevated prices just after such a quick run-up, some people seem to use the feature to convert their extra SBD to STEEM without realizing how much of their hard-earned crypto cash they're just tossing away. And nonetheless, it's important for all steemians to understand this regardless of the current STEEM and SBD price.
Once you've converted your extra SBD to STEEM, you can also easily power it up (if you choose to do so) by going to your Wallet, clicking the little down arrow next to your STEEM balance, and clicking Power Up. Then, just complete the form and you're good to go!
Buy from the market easy and quick.Thank you for your explanation
Yes, you can send SBD to bittrex and convert sbd to btc. Then you can bid for a good price.
Thanks for the post of explaining converting SBD to steem.
Wanted to drop a line saying thank you for this post. It was the most helpful from my quick search on how do to this. Even with this post being beyond it's payout period, wanted to let you know!
thank you @gerenacrehome, glad to know you found it so helpful!
And while were on the subject, if you trade on Poloniex, DO NOT buy steem there! Price is always higher@Polo. Instead, convert Btc into SBD then transfer SBD on over to Steemit to then use the built-in internal market ;)
Personally I find this all to complicated. Why are there two ways of converting. With such a significant difference in value. Who is ripping who off. In my mind this is a part of the sham of banks we are trying to eliminate.
This is an excellent guide that explains the differences between STEEM the crypto-currency, versus its associated "smart contracts", STEEM POWER, and SBD (STEEM-BACKED DOLLARS):
Link: Steemit Financial Instruments: Steem, Steem Power & Steem Dollar Explained
I am really getting a lot out of such amazing advice. Thanks!!
for a bit more on this topic, I just happened to stumble onto this post as well...
Link: Attention SBD Converters: Please Read - Important Information about SBD -> STEEM Conversions
I do remember reading this article and took his advice understanding better how it all works
I like your personal financial advice, that is sound...
However, a person converting sbd to steem, at the value of $1 worth of steem and during a time that sbd is worth more than $1, is infusing value into the steem network.
But the steem network no longer has this option available on the website, so I suppose both our points are moot at this time.