Here's How To Take Advantage Of The Steem Dollars (SBD) Run Right Now - Global Coin Report
Connect with us

Bitcoin

Here’s How To Take Advantage Of The Steem Dollars (SBD) Run Right Now

Published

on

steemit image

Between November 20 and December 8, 2017, the price of Steem Dollars (SBD) rose from around $0.96 a piece to $7.36. That’s a close to 670% increase in what essentially amounts to a couple of weeks.

Here at Global Coin Report we’ve taken a look at many of these sorts of moves over the past few months and, as part of our coverage, have outlined what we deem as being the driver behind the action we have seen and, in turn, what we expect to come next from the tokens that are moving.

This time around, however, things are a little bit different.

Before we explain why it’s worth noting exactly what SBD is and how it relates to the platform Steemit and the cryptocurrency Steem (STEEM).

As many reading will likely already be aware, Steemit is a sort of social media, content curation type platform over which content creators get paid for the content they create. This payment is made in STEEM and SBD is a sort of sister currency to STEEM that’s designed to track the US dollar and offer a quick and easy way of figuring out exactly how much each Steemit user is getting paid for the content they create.

As such, inherently, SBD should always trade in and around the one-dollar mark. Take a look at action over the last three months, as illustrated on the chart below, and this becomes apparent.

SBD Chart

SBD Chart

Of course, pegging something like this to the US dollar is going to have its inefficiencies and the latest run is one such example of this potential for inefficiency. The thing to realize, however, is that this isn’t like a normal cryptocurrency – it’s not running to the moon. It will return to one dollar as the blockchain mechanisms on which Steemit rests adapt to the increased price and, in turn, push it back down.

So that all seems pretty boring – we can’t really short sell SBD so that means that there’s no real opportunity to take a profit from the market on this action – right?

Well, not necessarily.

The link between STEEM and SBD is a liquid one in the sense that when the price of SBD goes up, the dollar or bitcoin exchange rate is favorable which, in turn, means that if you cash out your SBD for BTC now and then use that BTC to buy STEEM, you’re going to get much more STEEM for your SBD than you would’ve done just a couple of weeks ago.

You can then hold that STEEM and convert it back into SBD once things settle down again and the profit you’ve made is the difference between the value of the STEEM you pick up now against the SBD you sell to acquire it and the number of SBD you get for your STEEM once you convert it back into BTC to buy SBD when SBD falls back down to its inherent value of one US dollar.

Of course, there is a certain degree of risk rooted in the exchange rates for the US dollar and bitcoin as compares to STEEM across the period of time it takes between now and SBD to return back down to one dollar a coin but, the higher SBD rises, the lower this risk becomes based on the fact that you got more leeway on the arbitrage trade.

As ever, keep in mind that this is a very volatile market and even these sorts of positions can never be guaranteed. With that said, however, as far as quick and easy opportunities go in the market and, especially, in this market, this is one that doesn’t come around too often.

We will be updating our subscribers as soon as we know more. For the latest on SBD, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Steemit

Altcoins

3 Reasons Why WISE Token Could Be a Massive Winner in 2021

Published

on

WISE token

After working in proprietary trading for over a decade, I decided to transition to crypto in early 2017.  Although crypto is significantly different from traditional capital markets, I managed to successfully find a niche for successful and opportunistic trading.  While 2017 was the perfect time to get involved, the past few years have proven to be a bit more challenging as far as generating ROI.

Cryptocurrency traders have spent the past several years searching far and wide for the next big winner.  While the market as a whole hasn’t been very bull friendly, one specific area that appears to be gaining traction is decentralized finance, more commonly known as DeFi.  This area generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum.  The reason why so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside the meddlesome control of foreign governments.

One extremely popular DeFi project is Chainlink (LINK) which is a decentralized oracle network that provides real-world data to smart contracts on the blockchain.  Chainlink has seen its token price increase by more than 300% year-to-date.    Another impressive project in the space is Kyber Network (KNC) which has seen its token soar from $0.20 at the start of the year to more than $1.60 at present.  Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be…

Continue Reading

Bitcoin

The Pros And Cons Of Cryptocurrency

Published

on

cryptocurrency

Many facets of our lives are now digitized––money is no exception. 

Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card? 

Not to mention, cash carries germs, as we’ve heard lots about during the pandemic. Many businesses have turned to card only options in light of this. 

But what about cryptocurrency?

You probably heard everyone raving about it a few years ago, but the excitement’s calmed down quite a bit. That doesn’t mean that it’s not a viable option you should keep in mind. 

What’s Cryptocurrency? 

Let’s start with the basic definition of cryptocurrency so we’re all on the same page. Cryptocurrency utilizes cryptographic methods and complex coding systems to encrypt sensitive information during data transfers. This protects your funds and personal information on a whole different level. 

These transactions are virtually impenetrable due to the combination of mathematical and technological protocols created and put in place. This aspect of cryptocurrency is what makes it safer. Also, the details of transactions are kept private. No one can see who sent what, etc., because those rigorous mathematical and technological protocols protect it.

The Pros: 

Different From Traditional Banking Transactions

One thing people hate about traditional banks is the fact that they can…

Continue Reading

Bitcoin

As Global Tensions Grow, Bitcoin Price May Go Higher

Published

on

BTC Surged Again as A Safe Haven Asset During Global Tensions

  • India – China Border Conflict

After weeks of squabbling and brawling along their long-disputed border, hundreds of Indian and Chinese soldiers engaged in a deadly clash Monday in a river valley that’s part of the region of Ladakh last week. Troops had massed on both sides of the border in recent months in the northern India region of Ladakh and the southwestern Chinese region of Aksai Chin, causing global concerns of a potential escalation between the two.

  • North and South Korea Clash

Last Tuesday, North Korea destroyed the liaison office it jointly operates with South Korea in the city of Kaesong, just north of the demilitarized zone that separates the two countries. 

North Korea also said it would send troops to now-shuttered joint cooperation sites on its territory, reinstall guard posts and resume military drills at front-line areas in a violation of separate 2018 deals with South Korea. Jeong said South Korea will take “immediate, swift and corresponding” steps to any North Korean provocation.

The tensions grown in Asia and the potential “second wave” of coronavirus in the United States may add more difficulties to the global economic recovery. Thus, Bitcoin, as a safe haven asset, attracts more investors to buy and hold. 

Continue Reading

Press Release