Great info, resteemed. My favorite is Tether because it has the better stability with 1 USD.
SBD will trade down to 90 cents, or like 80 cents on poloniex. This sort of behavior happens during market declines. This means people buying "stable SBD" could face a 10% to 20% decline in value if they try to rebuy other cryptos when the market is tanking. Once the price of STEEM begins to recover, SBD will trade back up near $1 again, but so long as the market is declining SBD value is not safe due to how the mechanism works for holding SBD prices at $1 USD.
That said, if I am holding Tether USD, and I see SBD trading down to 90 cents or lower, I buy SBD instead, and then when STEEM recovers, you get a free 10% ride higher! SBD at or below $0.90 is quite safe, safer than Tether really. SBD also has little to no risk of their system failing, where as with Tether, it has more of that risk of total failure.
Totally agree.
I'm always refining my strategy, but in this last move to safety I have used Tether as I anticipated the falter of BTC $5K and got out ahead of the downturn. I am thinking that SBD might be a better option when the market is already falling and I am late to exit. In that scenario SBD may already be showing weakness and a bargain can be had (before this latest selloff SBD was over $1 US)
The volume of trade on SBD is a bit low though. According to CMC the turnover on Bittrex is only $46K in the last 24 hours, which is not a lot and it wont take much to move the market there. I wouldn't buy SBD on Poloniex because you can't get it out. Deposits and withdrawals of SBD has been down for a long time now and there's no promise of a fix in sight.