Analysis: Is It Good or Wrong Investment Advice To Convert "Small Balances" Into BNB?

in LeoFinance2 months ago

If you have been or are a regular Binance.com user then you must have come across the "convert small balances to BNB" message!!

I know most of us have always clicked on it and done the conversion without putting so much thought into it.

Analysis Is It Good or Wrong Investment Advice To Convert Small Balances Into BNB.png
I was talking to some friend a few days ago and he bluntly told me that he regrets converting some of his "small" balances to BNB!!!

He said this because he has seen some of those small balances by then mooned insanely had he not converted them to BNB.

This reminded me of some tokens I also had in plenty back then that have now mooned.

In this post, I want us to analyze whether it is a good or bad idea to convert small balances into BNB.

I am going to use my previous converted transactions as a case study, I will state the total price the token was at the time of conversion and also the price of the converted BNB at that time.

The first pic below is taken from my account on 2020-01-31 as you can see from the screenshot

bnbconvert.PNG

Analsyis

I will ignore the small balances and use the whole number balances like ONE, STEEM, MITH and XRP.
I will be using the prices from coingecko

So from the screenshot, I converted 500.59622645 ONE into 0.14128828BNB, 16 XRP into 0.2052512BNB, 90.1622 MITH into 0.03631553BNB.

These 3 tokens gave us a total of 0.38285493BNB
Let me now break it down below with the prices of Coingecko as at 2020/01/31, I will be using the close prices of the day.

1.Analysing Harmony ONE

Let us begin analyzing Harmony ONE, the close price on 2020/01/31 was $0.00517640

That means that my 500.59622645 when I made the conversion was $2.59128630659578.

Let us also convert the price of the converted BNB into dollars as of that day.

So 500.59622645 ONE was converted into 0.14128828BNB, at the BNB close price of 18.10 as of 2020/01/31 that was $2.557317868

Now let us also convert our Harmony into the current prices and see how we would have faired if we had held on until now!!

The current price of ONE at the time of this writing is $0.140037 meaning I would now have a whopping $70.04792937092205 if I not converted into BNB back then.
one.PNG

Now let us also convert our 0.14128828BNB that was converted from our 500 ONE tokens.

Again we are going to use today's price of BNB of $568 we now have $80.371838078!!!
BNB.PNG

So our verdict is that my conversion of my 500ONE was a good decision back then!!
If I had maintained my 500 ONE, I would now have $70 and since I converted it to BNB, that converted BNB from the 500ONE is now worth $80!!!!

2. Analyzing Mithril

We are going to repeat the procedure we did above with Harmony.
The close price of Mithril on 2020/01/31 was $0.00773174.

That means that the value of my 90.1622 MITH was a mere $0.00773174!!!!

Let us also convert the price of the converted BNB into dollars as of that day.

So 90.1622 MITH was converted into 0.03631553BNB at the BNB close price of $18.10 as of 2020/01/31 was $0.657311093

Now let us also convert our Mithril into the current prices and see how we would have faired if we had held on until now!!

The current price of Mith at the time of this writing is $0.105815 and I would now have $9.540513193!!
mith.PNG

Now let us also convert our 0.03631553BNB that was converted from our 90MITH tokens.

We are going to use today's price of BNB of $575 at the time of this writing, we now have a whopping $20!!!
mithbnb.PNG

Again our verdict is that my 90 Mithril conversion to BNB was a good decision back then!!

We have seen through the calculations that, holding my 90Mith would be now worth only $9.5 and converting it back then to BNB is now worth $20.

3.Analyzing XRP

The close price of XRP on 2020/01/31 the day I converted it to BNB was $0.238427.

That means that the value of 16 XRP when I converted it to BNB was $3.814832.

Also, our 16 XRP was converted into 0.2052512BNB, so the 0.2052512BNB at the BNB Close price of 18.10 on 2020/01/31 was $3.71504672

Let us now calculate the price of XRP if we had not converted it to BNB back then.

We are taking the current price of $1.41 and that would give us now $22.56.
xrp.PNG

Now let us also again convert our 0.2052512BNB that was converted from the 16XRP and we see how we stand!!

We are going to use today's BNB price of $575 and our converted BNB is now worth $118!!!
xrpbnb.PNG

So for the consecutive coin, converting small balances to BNB is a better investment idea, I am really shocked though!

We saw that holding our 16 xrp would now be only $22 and converting it to BNB would now be $118!!!

Let me look through my other conversions and see another token that I can analyze before we conclude.

I looked through and almost all the tokens I always convert are really really small.

Is it Good to convert Small balance BTC into BNB?

I just found out that I once even converted some small balance of Bitcoin into BNB, Holy Fuck!!

Okay, let us see if the bitcoin conversion was good or bad since all the above conversions were good.

So on 2019/05/30, I converted 0.00054506BTC into 0.13777632
BNB, Let us do the analysis together again.
btc.PNG

We are going to check the value of 0.00054506BTC at the close price of Bitcoin on 2019/05/30 at the price of $8,310.89.

So the value of 0.00054506BTC was $4.5299337034 only as I converted it to BNB.

Also, our 0.00054506BTC got converted into 0.13777632BNB which was $4.3757759232 at the BNB close price of 31.76 on 2019/05/30

Now let us calculate the value our 0.00054506BTC would be now if we had not converted it into BNB.

At the current price of $54,671.06, that would now be worth $29.799007963599998
BTC1.PNG

So finally let us also convert the 0.13777632BNB that was converted from our Bitcoin and see how much worth it is now.

We are using the current BNB price of 563.02 and that would be a whopping $77.5708236864
btcxrp.PNG

So again we see that converting even my small balance BTC to BNB was a good investment idea.

If I had held my 0.0005BTC it would be $29 and my converted BNB is now worth a whopping $77!!!

I really thought that maybe Bitcoin would do better, but I have been proved wrong by the analysis.

I do not think there is any token listed on Binance that has performed better than BNB in the last last years or months, this calculation says it all folks.

And I also think that no coin listed on Binance will ever surpass BNB performance.

Final Verdict

It is a good investment idea to always convert your small balances on Binance into BNB, at least according to my analysis here above..

If you have a token that you think has outperformed BNB and is listed on Binance, comment below.

I will snow show my friend this post so that he can be at peace for converting his small balances into BNB!!

I also think that this analysis says something about BNB....it is was a good investment back then, not sure if the past can predict the future, that decision rests on you.

Disclaimer: This post was written for educational purposes only and should not be taken as investment advice!
Always consult your financial advisor before engaging in any investment-related activities

So are you going to now convert those idle small balances into BNB haha or not??

If you loved my analysis, upvote and share with your networks.

Love
Jarau Moses

Posted Using LeoFinance Beta

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You just relieved me, i have always converted the tokens to bnb without thinking much about the valuations. But your post makes me feel that its good decision as no currency listed on binance can surpass performance of bnb.


Posted via proofofbrain.io

I also thought that maybe it was a bad decision before personally doing this analysis hehehe.

I will not also think twice from now on when converting those small balances into BNB!

Thanks for reading my post, do you think BNB will continue rising and even maybe beat Ethereum sometime ahead?

Posted Using LeoFinance Beta