Was It Profitable To Convert HIVE>HBD In The Last Pump?
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TL;DR Yes!
In fact I am quite shocked how much profitable it was. Let's first have a look what happened.
HBD pumped to over $3 and then dumped in a matter of 24 hours back to $1. In other words, the rally lasted only for a very short time with HBD quickly stabilizing again.
Converting Hive>HBD is a profitable action when HBD is above $1.05 (as there is a 5% fee). But since HBD was only briefly significantly above $1, the profitability of converting Hive into HBD was largely dependent on when this conversion took place since the conversion itself takes 3.5 days to complete.
The black box in the chart above was the time frame when I made the conversion. I got lucky since I started the conversion almost immediately after the pump at around $2.6. But since I expected HBD to dump hard I also didn't convert too much since I didn't know if it was going to be very much profitable. In the chart you can also see on the vertical axis where I think the average price for HBD was in that time frame (by eye balling the chart). I think it might be around $1.3. So the conversion should have been profitable. Note, I actually don't know if it would always be a profitable action when one starts the conversion at a price above $1.05 or what happens when the price only briefly goes above this threshold and for example stays 99% of the time at $1 or under it for the remaining conversion time window (if you know let me know :)
Since one gets 50% of the amount of the conversion back instantly in HBD one can redo this process until the HBD received is too low. I started with 185 Hive for which I immediately received 38.5 HBD. I then sold this HBD on the internal market for 132 Hive.
I continued this process until my HBD was at around 3. So I got 7 conversions in total form my original 185 Hive.
You can see it here in my wallet as well
So the big question: I started with 185 Hive; with how much Hive did I end up with after 3.5 days?
When we add the amount of Hive received from the end of the 3.5 days conversion period we end up with...
~323 Hive!
This means I got a 138 Hive profit from this. Pretty good I would say, since this is a 75% profit in a matter of 3.5 days! If HBD was often above $1.05 this would be the most profitable thing to do in the Hive ecosystem by far. The APR would be off the charts!
Tagging @edicted here since he questioned in one of his posts whether it would be profitable to do the conversion for this pump.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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Trades made in heaven, goddamn 😎😎.
For me, I found out about the pump only when it was over, but anyways even if I found out early enough I wouldn't have made much.
Great one .... I think I'm around the same level .... havent looked in details yet :)
I tried to look at mine but it is not easy to add it up as I had some extra HIVE coming from other places, ie. not just the HBD conversions (that have their details buried 3.5 days back). I wish I could tell without spending an hour on going through the logs.
However, for a lower bound, dCity Fund did a separate account that ran 1000 into 1176 doing only two conversions reasonably late into the event so most people who noticed in time should beat that 17.6% super easily.
I also convert hive to hbd and hbd to hive. Small amount profit.
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TLDR: It is still OK, mostly.
Well, I did something like that too but I had liquid hive and put orders to sell at $1,2$ and 34 and all of them cleared out with a profit of about 200%
800 hive to 2500 hive there about
I missed this opportunity because I didn't have hbd and hive as at that moment which was very annoying
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I started my conversions around 1pm when price of HBD hoovered around $1.5. Last night I check my balance, even being as lagging as that I got solid 30% more of $HIVE at the end. Only trap here is HIVE going lower which seems to be unlikely in that case since there is incentive to buy more HIVE for profitable conversions. Perfect stabilizing mechanism.
Can't wait to see stats on conversions from this day.
This was a good method, the conversion was really a nice idea, Looking at the total number of Hive you received, it was worth converting.
Nice one 🤗
Interesting
So great!
Thanks for sharing and explaining in detail how it works.
I will learn from it and apply it next time if HBD pump :)
A long time ago (about 3yrs), I was trading Hive-HBD in the internal market... was lucky enough to earn some profits even though I don't have technical skills to day trade. Back then HBD(SBD) was fluctuating like crazy and the opportunity to earn is very obvious.
Nowadays, HBD was stable enough that I can't see how I can profit by simply trading between Hive.
Right after reading your post, I got excited again to try to learn how to earn with the currently fluctuating prices of HBD & Hive. Thanks for this idea... and big congrats on almost doubling your Hive on your trades, cheers!
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