If At First You Don't Succeed: Buy More Steem!

This title may sound odd, but I'm sure all of my loyal followers, who start to slowly grow, know that I'm a huge advocate for the "Power Up" feature.

Well, today I'm going to give you the specifics of why "Power Up" is the best feature you can use to succeed financially in this platform - and no, I'm not going to speak about the basics and the advantages that this brings, I'm sure my followers know that by now.
What's I'm going to discuss is:

Why you should NEVER hold SBD;
Why your SBD will buy you less and less STEEM
How to Properly Manage your Wallet Decisions

...and some other variables.
If you want to learn more about these topics, then this post I've written right now is just the post for you, so grab a cup of coffee and read me out.

Don't forget that everyone can disagree on these things, and if you think I'm wrong I'd love to read about it down in the comments section.
Here we go...

Why Should You NEVER Hold SBD: Depreciating Currency

To understand why Steem Backed Dollars are a currency that will depreciate with time we have to look at the laws of the market.
In trading, and in markets in general, an asset appreciates in price if the demand is higher than the offer. On the other hand, if people want to dump the asset more than others want to buy it, it will depreciate.
So, let us check the incentives you have to keep SBD:

Think about them... you can pay bots with it, and use it for a transfer or another, and that's about it.

Now, the reason the price of SBD is increasing is that people are getting them at a faster rate than the rewards can produce it, and they do so because they experienced an initial climb which triggered the Fear of Missing Out (just learned this today, up to today I just couldn't see why it rose).
On the other hand, let's take a look at the incentives you get to keep STEEM:

It is the main token, available on exchanges;

You can use it to Power Up and increase your power;

You don't get it in rewards as much as SBD, so it's rarer;

It is what people focus their investing on.

Now, as you can see, you have a lot more reasons to keep STEEM. Finally, I just want to add that you are always selling Steem Backed Dollars (SBD) to buy Steem to either power up or cash out.
Having said that, it is there for all to see that STEEM has all the reason to climb in time, while Steem Backed Dollars has more reasons to decrease in value, rather than increase.

How To Manage Your Steemit Wallet: Decisions, Decisions!

On the other hand, you also have another variable to consider. If you want to properly manage your wallet and if you consider what I stated in the post above, then you have to know that as time goes by, STEEM will increase with value, and as STEEM increases with value, SBDs will buy less of it.
Think about the following:

Steem has all the reasons to grow;
SBDs, even if experiencing a parallel increase (which is unlikely for the reasons stated above), won't accompany the growth of the main token;

So this means that we'll reach a time in which 1 SBD buys 0.20 STEEM and so on.
This makes it pretty worthless to hold SBD and wait for a better ration, you should Power Up as soon as possible. FOMO doesn't last forever.
On the other hand, when should you take profit?
Well, from my point of view, you should take profit regularly to ensure you pay yourself. For instances, try to take 20% of your incoming rewards into BitShares and trade with it, or store it in a pegged crypto.
I don't think you should convert the tokens to FIAT though, unless you really need to.

This post served more to give you guys an idea on how SBD and STEEM differ not only in the fact that they both have very different incentives to hold but also in the fact that while STEEM is undervalued, SBD isn't... and it may even be overvalued.
If SBD climbs, and I wouldn't be surprised if we see a little surge, it is merely speculation and won't last.
So, if I were you, I'd give more love to the token of the platform rather than to this parallel token.
Finally, if you don't succeed financially in Steemit... buy more Steem.
It will rise, so even if you have little by today's standards, you may have a lot on your hand by the end of the year.
Cheers