If there's one thing I LOVE about the Steem platform, it's this:
the ability to hold Steem AND Steem Dollars
This is perfect for hedging the wavy nature of crypto, especially on a young platform like Steem.
Whenever I get awards in Steem Dollars, I tend to convert directly to Steem via the Internal Market. This is great when the currency is on an upward trend, as 12 STEEM might be worth $14.50 in Steem Dollars one moment, only for the same amount to be worth $18.90.
...but what about dips?
This is why if it seems to me like it's about to dip, I would not only hold new Steem Dollars I get, I'd even buy "steem dollars" with some of the amount I currently got (but not all, and it would be a gradual process based on where the markets are going in terms of trading volume and how fast the value of STEEM is increasing vs. Steem Dollars)
Then if the price of STEEM goes down, I'd BUY!
Think I'm missing something here but I'm new here and this whole conversion thing but recently did my first Market buying of steem , from Dollars, which cost more than got in return so how exactly are you making money on the exchange?
You make money off the exchange by watching the buy/sell ratio + the trajectory of where prices are gonna go. (I also like to do auto-orders that sell/buy when the market conditions are right for it)
Tnx, so it's by selling at the right time , as I thought, from your post thought perhaps u auto make money just by converting.
I'm probably doing it wrong but i'm using the "Convert to STEEM" option. That means getting a 3-day average price instead of the current market price right?
yeah that's pretty much what you get. I never use that tho ;P