As you know, I talk about Steem a lot. There are dozens of posts about opportunities based on price of Steem which I have shared time and again, from so many people earned 30-50 % profit.
What I used to share was the opportunity presented by Steem price in the internal currency market of Steemit. As Steemit posts get rewards in form of Steem Dollars and Steem Power, every account has some Steem Dollar held in account. I usually share the price update when Steem's price is close to 1 SBD so that people can trade their SBDs for Steem.
Why Can It Be Profitable?
Steem is a properly traded cryptocurrency with no pegged price (SBD is pegged against USD and therefore remains close to $1). When Steem's price is low, SBD can be traded for buying Steem but in large quantity. At 1 SBD per Steem, you get, let's say, 100 Steem for 100 SBD.
But, Steem's price rises back to $1.2 to $1.6 usually and may even go past $2 provided there's good buyer support behind Steem. At $1.5 per Steem, your 100 SBD (which were worth about $100) become worth $150 because you traded them for Steem and its price went up. That's easy 50 % gain.
How The 33 % Profit?
What I did last time was quite the opposite. I didn't buy Steem when it was low, I rather sold Steem whem it was high. I had 174 Steem and at average price of 1.35 SBD per Steem, I got 232 Steem Dollars.
But buying and keeping these 232 SBDs was not my ultimate plan. My plan was to repeat what I earlier explained in this post; buy back Steem when it is low.
When Steem will be $1 again, I will buy 232 Steem using the same 232 Steem Dollars that I got by selling my 174 Steem earlier.
So fundamentally, I will be able to increase my 174 Steem to 232 Steem by this trading move right here on the Steemit market.
That is 33 % profit by trading between Steem and Steem Dollar without moving them to any external exchange.
But, Will This Plan Succeed?
For it to succeed, Steem must fall to such a price that 1 SBD becomes worth one Steem. That is possible but not compulsory. Right now, if I buy Steem at the current price, I get 200 Steem. That is still 26 more Steem than I had before; a 15 % profit.
I do hope to see the transaction goes through. I am even anticipating that I may get an even better return but nothing is for sure in the market.
PS: Do not take this post as financial advice. The idea is to share my insights and experiments. If you wish to make financial decisions, please do it after doing your own research.
