I'm currently powering down... but not for the reasons some might think.
I'm not cashing out!
I've noticed steem trading between a range, and I've already increased my stack by 100 steem from a pot of 500 steem I recently withdrew by trading this range. I was lucky enough to sell my stack at 0.00002140 sats during the spike on Wednesday the 27th of November.
I'm powering down at the minute because I want to take advantage of this range to trade my way to twenty or thirty thousand steem before alt season hits. To achieve this goal I'm going to need more liquid steem as the greater the pot the greater the potential gains.
For now, I'm working in a conservative trading range between around 0.00001500 - 0.00002000 sats, which is a lot easier to profit from than trying to judge/manage support/resistance levels in rising or falling markets. It is literally a game of patience and careful laddering of sells and buys.
But what if Steem moons while you're trading all your powered down steem?
Sorry guys, that ain't gonna happen tomorrow, or this year I think. Also, I am not going to power down all of my steem, only a portion of it!
Ask yourself this question... when Bitcoin blew up to $13000 recently did steem moon?
The answer is no, in fact it fell in value relative to BTC and (less so) against dollar value. The reason why steem didn't rise with the BTC market is simple, there was no perceived demand for steem.
Clever poker players like @theycallmedan can go all in buying huge stacks of steem at the point of (hopefully) least demand, which is a clever move in my opinion. This is the definition of an informed, calculated risk as the developments happening here on the steem blockchain are very real.
The potential is real, it is only the wider perception of that potential that is skewed.
I wish I had large amounts of money to make moves like this, but unfortunately I don't. In fact all I have is debts, so I have to look at other ways to increase my steem holdings.
Steem's utility has unfortunately taken a massive hit to its reputation, due to bidbots, and the advent of #newsteem isn't enough to mitigate against these perceptions in the wider crypto-sphere.
Hang on minute folks...
Try not to shoot the messenger.
Does this mean I'm bearish on steem?
I'm convinced that the release of SMT's, timed well, with a surge in retail interest in cryptocurrencies will catapult steem right back up into the top ten on coinmarketcap.
To my mind, there are three factors that any crypto project needs for massive value increase: utility, application and a hype factor. These observations are based on what I witnessed during the last bull market.
SMT's, with communities, offer both programmable proof of brain and the potential for launching cheap ICO's through steem's feeless blockchain. Coupled with the multitude of dapps on the steem blockchain we are ticking all three boxes... when SMT's are realized.
When SMT's are realized steem has a chance to increase massively in value if web 3.0 does develop in the direction of tokenization of community resources. If web 3.0 is the revolution I would like to see, with people taking back the power (and value of their data) from big tech companies like Fbook/twitter, steem has the potential to become the next Etherium!
It is for all of these reasons that I'm confident that this trading range will hold for a while yet. It looks like SMT's won't be fully tested and released until next year, and honestly, timing their release is a very important decision for the value of the steem token. If they are released right at the beginning of a hype phase and during the speculative drive running up to the Bitcoin halving I think that steem will moon!
That's the 64 million dollar question 😉
One thing is for certain! I'm not being caught out like I was last time powering up all my steem at a $4/steem price, which is part of the reason why I'm powering down some of my stake now to trade this range. Whatever I make during the next 4-5 months trading will be split 80/20 to PU/hold for the advent of alt season and I will learn my lessons from fomo.
All the best everyone... and happy stacking!
This is not financial advice, nor a guarantee or promise in regards to any result that may be obtained from trading steem. The information provided here is for informational and entertainment purposes only. It should not be considered as financial and/or investment advice.<
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