I haven’t been posting much in steemit but I was still very active in the platform. STEEMIT is great for posting and curating contents, but trading in it is not at all less impressive.
While there is some pessimism with STEEM price falling down from the all time high $8 to less than $3 in some markets, I was able to find an amazing way to use this in my advantage.
My Trading account:
I prefer separating my trading account from my posting account. If you check my wallet here you won’t find much so you need to take my word for it.
My Little Experiment
Not so long time ago making $2000 in a one hour opportunity would sound impossible to me, but now it’s very much a reality. This started with a simple experiment a few weeks ago when I was checking out the STEEM market. Ever since this little experiment became successful it started consuming my whole time.
My investment was $161 and with it I bought 26.81 STEEM.
By trading it for about 5 hours straight with no rest I was able to make an extra 83.613 STEEM, $525 net profit (The price was then $6.3)
After my little experiment and more than 70 transactions, the profit opportunity closed and would come back only every once in a while.
Arbitrage Trading
Many people came across this idea but few actually tried to apply it.
When I started making my trades I did understand the simple concept but I wasn’t aware of its name. According to investopedia:
Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.
In simple words: You buy from a cheap market and sell in an expensive market. Taking advantage of the price difference which can yield exponential profits.
Example: Let’s say STEEM is $5 in one exchange and $5.3 in another exchange
while this may not seem like a big difference to an average investor it is a huge opportunity to a smart trader. You can theoretically double any investment in only 24 transactions between the two exchanges.
For each 24 transactions in ideal market conditions:
$100 gives $200
$200 gives $400
$400 gives $800
$800 gives $1600
$1600 gives $3200
Fast Transactions:
According to Blocktivity.info, STEEM is the highest used blockchain with an average speed of 0.05 second per transaction.
Considering the lightening speed of transactions, $2000 in one hour doesn’t sound unrealistic!
Zero fee transactions
Trading STEEM and SBD has an advantage over 99% of other coins out there.
Transactions are free and this feature is very desirable in any trading.
Any extra fee or delay in transactions would often be the fault of the exchanges which still wouldn't be that much compared to other cryptos.
Markets & Exchanges for STEEM/SBD:
https://steemit.com/market
https://blocktrades.us/
https://bittrex.com/
https://openledger.io/
https://poloniex.com/
https://hitbtc.com/
https://upbit.com/
While this has worked with STEEM & SBD, it can work very well with other cryptocurrencies. Please note that Arbitrage trading doesn't work all the time. It is not a guaranteed way of making money and it carries some risk associated with the trade and the market. Please do your own research and trade responsibly
When Whales Eat You Eat:
Recently I discovered that this doesn't only apply to upvoting posts but also trading. The most profitable trades can be made on whales orders. when you see large orders in the market, this usually means a fixed price for an extended period of time and it is your chance to find exchanges with a lower price and matched volume.
(Notice the volume difference due to one order
Thanks to large orders in the internal market from:
I and a few traders in the internal market were able to munch on them until they were completely finished. In one hour I made 356.43 STEEM = $2000 (the price then)
Why Am I Sharing This?
I understand that sharing this method will make it more difficult to take advantage of later but I found that having a mentality of abundance and selfless giving does always pay off somehow. I hope you find value in this post and be able to make great profits.
and engage with other members