Seems like there's money to be made here...
The other day I was checking things out on the Steemit market, trading a little bit of SBD for Steem, when it occurred to me that a little bit of day-trading, just between these two currencies, could be quite profitable with enough volume.
Now, me, I'm just trading small quantities, but I could imagine someone trading large numbers of SBD for Steem and vice-versa, could make a tidy profit.
So I'm going to conduct a little experiment. Feel free to tell me what you think. With a little bit of Steem-backed dollars, being that they currently stand at around a value that is around 6 or 7% greater than Steem, I can buy some Steem. Then, I can wait a little while for the margin between the two to close, or even for Steem to supersede SBD. Then I can simply trade back into SBD. Wait for SBD to rise, rinse and repeat. Ultimately this is what day-traders are doing, just with a bunch more coins.
Being that the two coins don't move in strict unison with each other, you would think larger scale traders could make a significant sum doing this. What do you think? Waste of time? Or is this a no-brainer and everyone has been doing this and I've just now realised this could be profitable? Share your thoughts.
As far as I understood SBD should be at 1 US$ theoretically. So if SBD has a value above 1 US$ you should sell SBD. On the other hand SBD won‘t go much below 1 US$. STEEM in contrast can have every value. To find the right value for trading SBD back and force is probably difficult and I don‘t know so much about trading. I‘ll stay with posting my nip-peeks for you 😊 @peekbit
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See that's the thing. SBD does not have $1 value. Right now, it's around $2.25 USD, but Steem is worth $2.09.
Now, Steem and SBD fluctuate in value. Say, tomorrow, Steem recovers more quickly than SBD and goes to $3 while SBD gets to $2.80. I can now buy SBD with my Steem for a profit. Then I just wait for SBD to leap-frog Steem and trade back again. You see what I'm getting at?
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What make the expirement worth wile is that you are not loosing anything on fees.
Very interested in the results!
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but maybe - you have sold your STEEM to buy SBD and SBD goes back to the ‚theoretically‘ 1 US$ (and could stay about 1$) and STEEM rises further.
But the idea is nice... 🤗
@peekbit
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I don’t know. I’ve tried day trading and it is really hard. I did some on binance, where fees are very low, and still lost money.
But I would definitely recommend swing trading, buying and selling every day, but no intraday. I did a few simulators where I swing traded and was able to get 6% gains in a month in the stock market.
I have been thinking about trading Steem and SBD, and will definitely do so with a small amount.
But trading is difficult, as I cannot find a price chart anywhere for SBD/STEEM.
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You can compare their prices on Blockfolio, relative to BTC and USD.
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