Right now our post payouts are in HP and HBD only. So most of us want to convert those HBD to HIVE.
If you are in a hurry and want to convert your HBDs into HIVE immediately then you're probably using an instant exchange that allows you to swap HBD to HIVE at a rate depending on the market values of HIVE and HBD. Or maybe if you're looking for a slightly better rate, you're using a traditional exchange where you sell your HBD to BTC and use BTC to buy HIVE.
At this rate you should ideally get a rate of around 4.8 HIVE per HBD, but taking exchange fees into consideration, you'll actually end up getting 4.4-4.5 HIVE per HBD. So if you wanted to convert say for example, 7 HBD, you would get somewhere between 30-31.5 HIVE.
Another option if you need HIVE immediatley is to Use the HIVE internal trading market and how to use it has been explained very nicely in the post I linked by @rehan12.
So basically, at the current market state, the best deal you can get is HIVE at 22 cents, even though the current market price is 19 cents as you can see in the first image. So, if you wanted to convert 7 HBD to HIVE, you will get around above 31.4 HIVE.
P.S. : Even when the market price of HIVE was around 17 cents earlier today, I checked the internal market, and even the best rate you would get was similar to what it is now. So even when HIVE was priced at 17 cents, you would have to pay around 22 cents per HIVE to convert your HBDs, because no one was sellingHIVE at a cheaper price.
But there's another method that a lot of us aren't aware of. That the convert to HIVE feature of Peakd. First I will show you how to use it and a bit of details of how the rate is calculated and by the time I'm done, you'll automatically know why you should be using this feature if you have time in your hand and don't need the HIVE immediately.
How to use the built-in Convert to HIVE feature?
- Go to your wallet from Peakd.com and then find and click the Convert to HIVE.
- The you just enter the amount of HBD you want to convert and proceed. Note however that, as of now, this feature is not working if you are signed into peakd with HiveKeysigner. I hope this gets fixed, but until then, use peaklock.
This is how they calculate the rate :
What it says is, the price at which HIVE will be at for most of the duration of the 3.5 day after you initiate the conversion request, that is the rate at which your HBD will be converted to HIVE.
I had initiated a conversion request of 7 HBD a few days back when the price of HIVE was around 21 cents. Soon after it dropped and stayed around 19 cents for most of the time and dropped further to around 17 cents at the time my conversion was ending. Because the price of HIVE stayed around 19 cents for most of the time, I was given HIVE at a rate of 19 cents.
As you can see, I got a 36 HIVE for 7 HBD. Compare it to the other methods where I would have gotten around 30-31 HIVE for 7 HBD. But I would have gotten it instantly. Now I had to wait for 3.5 days, but I got a much better exchange rate.
Now if you are converting small amounts of HBD, it doesn't make too much difference, just 5-6 extra HIVE, but if you're converting a larger amount and you have the time to wait 3.5 days, this method makes a significant difference.
I hope this was helpful! If there are more such tricks that you are aware of, do share in the comments or if you have a post talking about more cool features and how to use them, do leave them in the comments!
A great and very complete reading, in very didactic and simple language, ideal for those who do not master this area very much. Thank you for sharing. A hug and my support and reblog here. @simplifylife
Thank you so much! I'm really glad you found this useful! :D
Surprisingly not many people spoke about this wonderful feature. Just goes to show there's still a lot of features we don’t know about. We should keep exploring these and share with the community!
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I requested a convertion on peakd today with Hivesigner? Its not working if you are signed in with keychain.
But really nice review and lots of opnions for people!
Yes, it isn’t working with keychain. I didn’t try with hivesigner though. If you managed to initiate the conversion request then it’s fine.
Wow, very helpful for someone who just started, thank you!
You're welcome! Glad to help!
Oh this is cool!
Thanks for the tips!!
You’re welcome!
Hi @simplifylife, your post has been manually chosen by Hive Supporter and upvoted with 86%.
Keep up the good work and you'll have a lot of success here on Hive for sure. To find out more about the Hive Supporter project check out this post.
So, when you convert, you do it as a contract at the price at the beginning of the conversion? Or is there it changes within those 3.5 days? I suppose the first option but I am not sure yet.
Usually, the amounts are small enough for me and I am happy to see the difference immediately. Not saying this is the best way to invest. Your information was very valuable and it is great to know the pros and cons of all the alternatives.
Cheers!
No it's not a fixed contract on what the price was at the time you request the conversion. The rate depends on the what price HIVE stays at for the majority of the duration of the 3.5 days. It could be lower than the price at the time you start the conversion, it could as well be higher. You can constantly check the price from the price feed of the witnesses over the period of the 3.5 days and you will get an estimate of what price is HIVE being considered to be at most of the time and by most of the witnesses.
Ah, so in this case, we bet on stability or lowering of the price of HIVE in relation to the price of HBD.
Yes the lower the price of HIVE, the more HIVE we get. But not in relation to HBD. Price of HBD is pegged to $1 regardless of it's market price.
Actually, what that message is saying is you get a rate of 1 HBD = $1 using the conversion feature which is great if the price of HBD is below $1 but if it's above $1 then you're better to use the internal market or exchanges.
Yes you are correct.
The Internal market also trades with HBD pegged at $1 regardless of what tge actual price of HBD in the market is (if I'm not mistaken).
Say the price of HBD is $2 and HIVE is $0.2, you should ideally get 10 HIVE per HBD. But that would mean someone on the internal market has to sell HIVE at 10 cents for you to get 10 HIVE per HBD as HBD is still considered to be $1, which is very very unlikely.
In this scenario, where the price if HBD is significantly above $1, you would get the best rate on one of the larger exchanges, blocktrades, bittrex etc.
Probably best to check the median history price in relation to market price before you start converting:
median history price in red, hive volume in green and HBD/HIVE (close) in blue for the last couple of hours. Some of the market dips are beating the median history price.
Okay so here's one thing i'm not entirely sure about : during the conversion do they take the median price history for the last few days into consideration or do they take the median price after the conversion is initiated till the conversion is completed, i.e. the median price for the 3.5 days after requesting the conversion.
From what their message said, I think it’s the latter. And if it is the latter, checking the median price prior to initiating conversion won't be too helpful as the median price for the coming 3.5 days might be very different to the current median price. Am I correct or did I miss something?
But yes, it’s a good way to get an idea of where the market stood for the past few days or hours.
It is the latter. The median price moves a bit but it isn't that volatile you can put reasonable estimates on it. In the last two days it has moved by about +- 0.002
Anyway if I can now get a better or same price on the market than the current median price why would I want to gamble?
If you can get a better price on the market instantly then definitely I would go for that. But I have checked this for a while now, since we were on the steem blockchain and always I got a better rate by converting than either the internal market or on exchanges.
On the internal market people are always selling at 3-4 cents higher. And on exchanges they take exact value of HBD. But the conversion feature takes hbd as $1 even if HBD is actually 60-70-80-90 cents on the market. The only situation un which exchanges might give a better rate is,if the HBD price is significantly above $1. This is just from what I've observed over the,past couple of months.
See the dips in my earlier graph. Manually this is hard but you can automise it with a bit of beem :o)
Thanks for that
You’re welcome :)
I used this feature only twice when I got to steemit and I was advised not to convert as it is a slow way and often not the best way since price jumps are inevitable with the fluid market of hbd
Unless the price of HBD stays significantly above $1 I think you’re not losing. As below $1 whatever price fluctuations there is in price, HBD is considered to be at $1 so you’re getting a better rate anyways. But yes, if say the price of HBD is $1.3 or something, it’s wise to look at and weigh out other options too.
Great information, thank you for sharing!
You're welcome! :)
Thank you so much for this useful information, many of us are finding ourselves in difficult financial situations since the pandemic hit!
You’re welcome!
Yes this pandemic has hit the economy hard. We hope and pray everyone is able to fight through and get back up stronger when this is all over.
Best wishes!
Yes, I've used this a couple of times and been pleased with the result! Also it is quite nice because you kind of forget about it and then you suddenly have a lovely gift of Hive! Have a great day and a wonderful weekend! :)
Yes it's a nice surprise when all of a sudden you a few extra HIVE in your wallet :D
Have great weekend!
Thank you very much for the easy to follow, detailed "how-to" explanation! @simplifylife
You're welcome Nina! Glad you found this helpful 😃
Thank you for all the great information, @simplifylife. I've bookmarked this for future reference!
You're welcome! Glad to be of help to the community.
Thanks for information, nice step by step explanation.
You're welcome! I try to make these kind of posts as simple as possible for everyone to understand easily 😊
Thanks for the explanation on why CONVERT is better in the long run @simplifylife. I was hesitant to use this feature because didn't understand it. I will use it next time to convert to Hive.
Appreciate you taking the time to put this tutorial together.
You’re welcome! Yes it is kinda confusing as no one talks about it. At the beginning I was quite hesitant to use it myself.
i tried the convert to hive option and it didn’t work. I traded on the market with success but paid more for hive- around 21.
Were you logged into peakd with hive keysigner?
Try logging in with praklock next time and it should work. Hive keysigner isn’t working for this feature and I don’t know why. But I was told by someone from the peakd team that hivekeysigner devs have been informed and they are working on a fix. But that was a few days ago
Thanks @simplifylife. Actually i had a hard time logging in to the site last evening (to peakd).I don’t have keychain and it kept asking me for it. Anyway I got in this morning.
Congratulations, your post has been upvoted by @dsc-r2cornell, which is the curating account for @R2cornell's Discord Community.
This was very helpful. 👍
Thanks :)
That's really helpful. Thanks :)
You’re welcome! :)
This is very useful information. Thanks
Glad it helped! :D
Some great information here and thank you!
Blessings to all of your efforts!
You're welcome! I'm glad this helped so many of us in the community!
Thank you so much for the info!
Upped and reposted
!tip
Thank you so much! Glad to help!
Excellent information - thanks for sharing the explanation!
You’re welcome :)
Post shared on Twitter :
🎁 Hi @simplifylife! You have received 0.1 HIVE tip from @dswigle!
@dswigle wrote lately about: Masking Market Friday: A Tale Of Sewing Masks Feel free to follow @dswigle if you like it :)
Sending tips with @tipU - how to guide.
🎁 Hi @simplifylife! You have received 0.1 HIVE tip from @dswigle!
@dswigle wrote lately about: Masking Market Friday: A Tale Of Sewing Masks Feel free to follow @dswigle if you like it :)
Sending tips with @tipU - how to guide.
This is great information @simplifylife, I wish I'd seen it 8 days ago, but I've reblogged it so I can reference back to it.
Thanks
It’s cool but it takes a lot of time to complete! I had to do it from hive.blog to complete a transfer since this one is still pending :(