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

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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

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As Global Tensions Grow, Bitcoin Price May Go Higher

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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…

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CoinFlip Continues to Dominate the U.S. Cryptocurrency ATM Market

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Although cryptocurrency has brought in a lot of traders seeking the dream of overnight wealth, cryptocurrency is a lot more than just striking it rich.  Cryptocurrency is about creating a new market with companies that are building cutting edge technology in an effort to continue elevating our way of life.  As the crypto market continues to expand, several companies are involved in creating ways for more people to participate.  One such company that appears to be making all the right moves is CoinFlip.

CoinFlip is the world’s leading cryptocurrency ATM operator that currently allows users to buy and sell 10 different cryptocurrencies including BTC, ETH, LTC, DASH, TRX, KMD, LINK, BNB, XLM, and USDC.  Due to the company’s quick growth, CoinFlip has quickly gained a reputation of being the place to go for all crypto ATM transactions.  In addition to its massive geographic coverage, there are four advantages that CoinFlip currently offers over its competitors:

  • Lowest fees of any cryptocurrency ATM in the world
  • Lightning-fast transactions that are typically completed between 10 and 30 minutes
  • Extremely easy customer verification
  • 24/7 customer support through phone, text, and chat

Given the global pandemic currently facing us, many companies have been struggling just to survive.  CoinFlip, on the other hand, is not only surviving but thriving.  The company has had an exciting few months and has even bigger plans…

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Cryptocurrency Fraud is Evolving; Bitcoin ATMs Mitigate Risk 

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Cryptocurrency Fraud is Evolving
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In one of the more overlooked aspects of the crypto ecosystem, it appears that the bulk of illicit activities are shifting from hacks and thefts to cryptocurrency fraud and scams.

CipherTrace, the crypto-surveillance, and analysis firm released a report at the end of Q4 2019 that revealed hacks and thefts had decreased by 66 percent in 2019 while fraud and misappropriation of funds surged by 533 percent. And beneath the COVID-19 hysteria of 2020, hacks in the crypto sector have been eerily isolated. 

Outside of a few exploited flaws in P2P exchanges and DeFi flash loan vulnerabilities, the headline-grabbing hacks of exchanges for hundreds of millions of dollars have been absent so far this year. Is the industry due for another massive hack, or are stringent KYC/AML processes, regulatory crackdowns, better security practices, and blockchain surveillance working? 

KYC/AML Improvements Are Reducing the Appeal of Crypto Exchange Laundering 

2020 is far removed from the no-KYC wild west days of the early-mid 2010s where anonymous altcoin casinos preponderated and the Dark Underbelly of Cryptocurrency Markets thrived. 

Today, bitcoin and the crypto ecosystem is becoming institutionalized with a surfeit of derivatives (e.g., options, futures, perp swaps, etc.) available on…

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