Sharing Knowledge
Every now and again, I see common questions that pop up as I browse through my feed on @peakd and as I've occasionally shared some of my experience and knowledge over the last 2.5 years of being here, I try to help where I can. Some of my friends have been asking me about HBD conversions and how they work so I thought, instead of repeating myself multiple times in various comments across many users posts and DMs, I might as well just write a post about it and share what I do when it comes to converting HBD via PeakD. Here goes!
What Is An HBD Conversion?
It really is as it sounds, you're converting HBD to HIVE but instead of using a market or exchange to do it, you're using the Hive blockchain itself to process this and it will take 3.5 days to do it. Here, the blockchain will take the median average of the price of HIVE over the 3.5 days from the price feeds given by the Hive witnesses. There is more information on your PeakD wallet page about this but this is the basic principle of what an HBD conversion is.
How Do I Do An HBD Conversion?
Thankfully, PeakD has made this very simple as all you need to do is go to your PeakD wallet by clicking your profile in the top right of the screen and then "wallet". When you're in your wallet, click the drop down box (this will be greyed out if you have no HBD to convert), then click "convert to HIVE".
You will then see a second screen which will ask you the amount you wish to convert with a little more information about how the process. Once you have put in the amount of HBD, click continue and then that's it! Put your feet up, relax and wait for 3.5 days for the conversion request to complete. In the meantime, why not write another post or read someone else's 😃
Why Would I Want To Do An HBD Conversion?
Well, this depends really on what you want to do! For me, I want to power up HIVE and just build my holdings seeing as HIVE Power can really work for you here in so many ways. So converting from HBD to HIVE is a no brainer for me but you may have your own goals to achieve, or you want to have something a bit more variable as HBD is (supposed to be) stable at $1 USD (besides, you can't do much else with HBD at the moment).
How Do I Get HBD?
HBD is generally given as rewards for posting content on PeakD when the price of HIVE is about $0.17 or above, assuming you have set post payouts to 50/50 in your settings at the bottom of the post editor (see my previous guide to setting post payout options. Otherwise, you can buy HBD from certain exchanges that offer it but you'll need to be wary of the price fluctuations and work out what's best for you.
When Should I Convert HBD?
Generally, I go by the rule that if the price of HBD goes below $0.95 then I just start converting via Peakd, if HBD is above $1, I go to the internal market, which you can access via your wallet by clicking the down arrow next to "send" as below. Otherwise, I just hold HBD until it goes below $0.95 or above $1 (or unless I really need it or am impatient)!
I used to wait until HBD was below $0.90 but that doesn't happen as much these days, things to be a bit more stable but always keep your eyes on the price feed in PeakD's wallet! Others may do things slightly differently but after I've read a few people posting about their approach and trying things out myself, this has been what I've been doing - happy to read other approaches in the comments section!
Conclusion
PeakD's HBD Conversion is a pretty useful tool if you want to wait 3.5 days and potentially make the most of price fluctuations in HBD and get more HIVE. I'm always looking for ways to grow my HIVE Power and converting to HIVE for HIVE Power is one of my routes to do it but if you need that HBD to live then for goodness sake, exchange to your local currency! Nothing wrong with that either!
What about you? What's your approach to HBD conversion? Do you even use it? Did you know about it? Let me know in the comments below and hope you found this helpful!
Nicky
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Here's one for Stellar Lumens (XLM) - 4 referrals available:
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Enjoy!