Introducing a Newbie to Steemit and Explaining the Basics: Understanding Your Steemit Wallet

The Steemit Wallet is place where every Steem User checks how much value their STEEM POWER, STEEM DOLLAR, and STEEM is worth. A lot of people mix things up when it has to do with this Steem jargon especially newbies, and I will be explaining the jargon in this post.

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Balances

With the Steem wallet, account owners can check the account balance of the steem coins as well as the estimated value of the account. The Balances comprises of the STEEM, STEEM POWER and STEEM BACKED DOLLAR

STEEM

STEEM is the liquid tradable token that users buy, or earn. It may be transferred from one wallet to another and from one user to another, it may also be traded on exchanges like Poloniex, Binance, Bittrex, Huobi, Bithumb and so on, for other cryptocurrency or for fiat. STEEM can be powered up as STEEM POWER and also be traded on Steemit internal market for SBD.

STEEM BACKED DOLLAR (SBD)

SBD was designed to be a stable coin pegged to the U.S Dollar. It may be traded for STEEM, and other cryptocurrency, and may also be transferred from one wallet to another. SBD is meant to be pegged at $1 but it experienced it first peg break when it hit its all high of $16.03 for the first time in December 2017. Ever since, it has been revolving around $0.97 and $1 but on the 18th of November 2020, it jumped to $1.86 but returned back to $1.27 where it is as at the time of writing.

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STEEM POWER

I will refer to this as the influence token. With STEEM POWER, Steem users can vote on peoples' post and reward them according to the value their power possesses. The STEEM POWER is the Vesting power that shows that a user is a stakeholder in the Steem ecosystem. The more the STEEM POWER, the more the influence and the more the user can reward posts.

Users can power up STEEM to become STEEM POWER so they can have a larger influence and stake in the Steem platform or users can power down to the STEEM POWER to get liquid STEEM as well as delegate your STEEM POWER to other users giving them influence while they have the delegation. When users power up STEEM, the get and average APR of approximately 4.33%.

Savings

On the Steem wallet there is a place for savings where users can save STEEM and STEEM BACKED DOLLAR (SBD). A lot of people do not understand the reason why they have to keep their unused STEEM and SBD in savings. The savings is like a bank to keep your coins from easy access of scammers in case your account get compromised. If there is a case of keys being compromised and coins kept in savings, it would be difficult for the scammer to access funds as savings take 3 days to withdraw which is enough time to recover back the stolen account.

Keys and Permission

The Keys and Permission section is where all keys related to the account can be found , the Owner key, Active key, Posting key and Memo key. This keys are stored in Wallet Import Format (WIF), and users are advised to keep the keys properly.

The owner key is also regarded as the master key and can be used to change the entire key. It is advisable to keep a copy of this key offline securely.

The active key is the key that allows the transfer of tokens from one wallet to another. It can be called the financial pass to the account.

The posting key is used to post, comment, and vote on steemit. Also, it is used to perform any other activity including gaming on the blockchain provided it doesn't have to do with the coins.

The memo keyis used to send encoded memo while sending coins to other accounts.

Change Password

This is the place where users can change their keys. When a password is changed, all keys are affected. On this section, there is the seven rules of your steemit keys which are;

• The first rule of Steemit is: Do not lose your password.
• The second rule of Steemit is: Do not lose your password.
• The third rule of Steemit is: We cannot recover your password.
• The fourth rule: If you can remember the password, it's not secure.
• The fifth rule: Use only randomly-generated passwords.
• The sixth rule: Do not tell anyone your password.
• The seventh rule: Always back up your password.

Communities

With Steemit bringing the community feature in 2019, users can now create their own community and manage their community properly.

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To be continued...

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