As mentioned in Steem price update post, which I did when Steem was starting to catch momentum today, I wanted to use the price rise to my advantage. That's what I think I have done.
Steem went up to $1.53 today before going down to $1.4 at the moment with an upward run again. Just a few days ago, Steem was priced just $1 or even below that, which is extremely low I think but not impossible to happen due to uncertain Bitcoin market.
The scrollshot below is of my wallet and its recent history. Look at it and I'll explain what I did and why.
You can see that I paid Steem to buy Steem Dollars in multiple orders. I sold a total of 174 available Steem to buy 232 Steem Dollars. It's a bargain that has its risks but I think I know what I am doing.
Why This Trade?
Recently, the equation was; 1 Steem = 1 Steem Dollar. It meant that I could buy 174 Steem by spending 174 Steem Dollars. Now, I've sold 174 Steem to buy 232 Steem Dollars at a rate of nearly 1.35 SBD per Steem. That's 33.33 % more SBDs than previously.
What I really wanted to do was to sell Steem when it's high and buy it back when it is low again. My plan is to spend these 232 Steem Dollars, and the ones I earn from rewards, to buy Steem when it goes back to near 1 SBD/Steem.
That's how I would be able to increase my Steem by 30 % whenever such a price becomes available. I'll put an open order immediately to make sure I get to buy. It needs patience and there's all possibility that Steem may not go back so low ever again.
But it's a risk I wanted to take. What do you say?
