Even though HBD went up, my conversion to Hive was still (very) profitable
I made a post to keep track and show publicly how profitable it would be to convert my HBD to Hive.
The lower HBD is, the lower from the $1 peg it is, the more profitable it would be. I was worried I would be at a loss because yesterday it was at $0.99 so it had a real risk of me taking a loss.
I think what saved my conversion was that today HBD dropped to around $0.92 so it probably helped a lot!!
Originally I thought about buying Hive at spot price using the HBD.
If I did that, I would have 364 Hive.
The prices when I started the conversion were as follows:
But I am happy to see that the conversion was very profitable. I expected it to generate at least 364 Hive to consider it worth it, but I ended up making 372 Hive out of it!
It was 2% better than I expected!
Just be careful, when you do a conversion you are not investing, you are speculating. There is always the risk of HBD going up. If HBD goes up while you are converting you will take a loss.
The amount I was working with was low enough that I would not care about the loss, but was interested and thought it was worth it to write this report.
I am happy, it worked out better than expected, but again, I had some luck that HBD dropped sharply on the last day.
does it profitable to convert it rather than selling it on the market?
I hardly do the conversion and only exchange once to pay my dcrops game pack.
This time it was more profitable than trading the market on spot. If I were to use the market I would have got 364 Hive, but by converting I have got 372 Hive.
However always be mindful that it is a speculative deal, more than normal, if HBD price went above $1 I would be taking losses, and exchanging on spot would be more profitable.
This time it worked for me, but it may not be profitable all the time, it has a bit of luck behind it.
so it depends on the price of HBD against the USD isn't it?
understood. I might do the same when i have more Hbd in the coming future
Yeah you might convert and HBD will just go back up.Anyway nothing is void of risks, even the crypto world.
Just be sure you are willing...
Hey that's good info! I knew about the convertion process but i never tried it. Its good to see the profits you could earn by doing that
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Hi! There is one thing I am not clear about, is the price taken when the conversion starts or when the conversion becomes effective?
It is an average. So swift movements at the end of the conversion can ruin the possible gains. I suppose it is less risky to do it when it is very off the peg so it would take a bigger move to return to the peg
Thank you! I am converting when it is well below 1, but it is impossible to know what is going to happen while converting. I've been lucky so far, but it's still risky.
Oh wow, I never knew it worked like that, thanks for sharing.
I do not expect anything from Hive anymore. That is easier. Most of my posts are earning cents, no matter what I do. It would take me a year (or even more) to earn that amount (300-400 Hive). And most people can say the same (or even worse).
But I am talking about the conversation (like trading) tool, not about author/curator reward. I had 200 dollars and got a good deal buying Hive with that, that is the only point I approach
Yes, I know. I just do not earn much that I would worry about losing money on conversion, nor on trading. I am not going to worry over the few cents I earn, and I do not have money to invest into conversion either. My pension-like income is approximately $250 USD per month, so $200 USD is a lot of money for me. I absolutely/completely understand that you worry over that.
Earlier in the past I traded Steem and Steem Dollars (SBD) on the internal market of the Steem blockchain, so I also know what does it like to earn a few dollars with trading, but I currently do not have much experience with conversion.
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does this mean that the lower the hbd, the more hive can be exchanged?