Since I opened an account on ecency.com I have been using the convert function, but as the Keychain upgrade happened I discovered the new swapping functionality which I am started to use to buy HBD when it reaches 0.97 and sell them at 1.03
The Hive Keychain Mobile v2.0.15 beta offers users two distinct methods for converting Hive into HBD: through a "Convert" function and a "Swap" feature. Each of these methods serves a different purpose and operates under different mechanisms within the Hive blockchain ecosystem.
Convert Function
The "Convert" function is a direct blockchain operation that allows users to convert their Hive cryptocurrency into HBD (Hive Backed Dollars). This process is slightly technical and involves a waiting period of 3.5 days. The conversion rate is determined by the blockchain based on the median price feed over that period. This method is primarily used by users who want to hedge against market volatility by converting their Hive into a more stable currency, HBD, which is pegged to the US dollar.
Swap Feature
On the other hand, the "Swap" feature operates differently. It allows users to instantly exchange Hive for HBD or vice versa, but this time through the Hive Keychain's integrated swap functionality. This method does not involve a waiting period as it utilizes the liquidity pools available on decentralized exchanges within the Hive ecosystem. The swap feature offers immediacy and convenience for users who wish to quickly adjust their holdings between Hive and HBD based on their immediate needs or market conditions. The rate at which the swap occurs is determined by the current market rate on these decentralized exchanges, which can vary from the official conversion rate set by the blockchain.