Step-by-step illustrated instructions for buying Bitcoin and converting it to Steem Power. There is also a great deal (disguised as a social experiment) for those new to Coinbase (at the bottom of this post).

NOTE: Please do NOT flag me until I have had a chance to respond to any complaints by editing this. I am a newbie as well (and have unintentionally transgressed) and would appreciate a chance to correct any errors before getting hammered for them. Thank you very much.

Requirements: drivers license (or national ID card) and a credit card (step-by-step instructions for using a bank account will be posted later but most users should be able to figure it out from the credit card instructions).

Steem Power is exactly what you have vested in the Steem community. Since you can only cash-out ~1%/week, it is a great indicator of how much you care about the long-term health of the community. Therefore, your voting power in the community is directly related to your Steem Power (moderated by your reputation).

The base voting power of a typical newbie is currently about 1/5000th of a US dollar (you can check yours at http://steemdollar.com/dollar_per_vote.php). It will vary with the size of the community and the value of Steem, but currently (Aug 8, 2016) it can be estimated in USD by dividing your Steem Power by ~19,000. Dolphins and whales can immediately get on the trending lists merely by up-voting their own posts.

Equally, if not more important, is the fact that curation rewards are directly proportional to your Steem Power (as a percentage of the Steem Power of all other up-voters) heavily modified by the timeliness of your vote. If you get in early before several whales hit, you can get some serious curation rewards -- if you have the Steem Power to take advantage of it (see https://steemit.com/steem-help/@liberosist/mind-your-votes-an-investigation-and-guide-to-maximizing-your-curation-rewards). If you have very little Steem Power, you are unlikely to ever see any curation rewards.

Powering up is easy if you've been noticed and are making bank with your posts and comments. Half your rewards are already in Steem Power and you can invest the other half by converting your Steem Dollars to Steem Power via either the internal market (immediate) or conversion (has a one week delay). If you're having trouble being noticed or wish to invest more quickly, the rest of this article is for you.

Coinbase (https://www.coinbase.com/) is one of the larger, older and user-friendlier of the crypto-currency players. They also have a great deal where you can get $110 worth of bitcoin for $100 and, if you follow our instructions, up to 9 Steem Dollars.

57a36e81ae4b98503f8b08b9

You will see a screen like the following (Note: an invitation is necessary to get the extra $10 of BTC and I must invite you for you to get up to 9 SBD).

2. Click on Sign Up in the upper right corner, fill out the form and click on Create Account

3. Go to your e-mail, open the verification email from Coinbase and click on the Verify Email Address link.

4. Click on Next

5. Link/verify your mobile phone by entering your mobile number, clicking on Next, entering the 2-step verification code that is sent to your mobile phone and then clicking on Next again.

6. Click on Credit/Debit Card.

7. Click on Upload ID. Click on Start verification.

8. Select your country and then select your ID type.

It's interesting to see the IDs for each country. Since passports are accepted from many countries, I'm surprised that they aren't implemented for the United States . . . .

9. Click on the allow button above the dancing arrow in order to allow webcam access.

10. Follow the instructions and use your webcam to photograph the front and back of your ID.

IMPORTANT! Make sure that you can see the edges of your ID in the cropped images that you are asked to verify.

11. Wait about a minute for the upload and verification process to complete.

12. Enter your Credit Card information and click on next

Note that the standard credit card fee (plus a little more) is passed on to you . . . . ($3.75 of that $10 sign-up bonus is effectively lost here -- but wiring from you bank will generally cost around $15 so, unless you intend to buy more than $400, this is the better option and faster)

13. Click on Buy Digital Currency

14. Fill out your buy order and click on Buy Bitcoin Instantly

You can always reach this screen by clicking on Trade in the left menu.

15. Click on Confirm Buy

16. In a new browser tab, navigate to steemit, click on Buy Steem Power (at the top of the right column) and copy the address in gray (highlighted by a red arrow below)

17. Return to your Coinbase tab and click on Send Request in the left menu

18. Click on Confirm

19. Return to your Steemit tab and watch your Steem Power arrive

Note: Bitcoin is slow to confirm transactions. This will take anywhere from ten minutes to over an hour.

20. If you want to take advantage of Coinbase's $10 offer, repeat steps 14-19 tomorrow.

21. If you wish to take part in our social experiment (regardless of whether you used my invite), send an e-mail titled "Steemit Social Experiment #1" to [email protected] and answer the following as if you were able to and did use my invite:
1) How much of the 10$ worth of the bitcoin I receive for referrals do you believe I deserve?
2) How much do you actually wish for me to send back to you?

To those who used my invite and powered up their Steem account with $90 or more, I will send the answer to #2 (max 9 SBD upon receipt of coins from Coinbase).

To those who used my invite and did not power up their Steem account with $90 or more, I will send the half the answer to #2 (max 5 SBD upon receipt of coins from Coinbase).

To those who didn't use my invite, I will be sending some SBD (to encourage participation in future social experiments) -- the exact amount will be proportional to the answer to #2.

===========================================================================

REQUEST FOR ASSISTANCE: D161T4L W15D0M is attempting to compile a complete Newbies Guide for the Steem Community. Suggestions as to how to improve the above are greatly appreciated. We would also appreciate any pointers to really good existing guides -- or, even better, new ones that you would write and let us include (contact us if you need suggestions).

Thanks to Keira Li (august-newbie) for many of the screenshots.

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raiderredjd (36) · 8 years ago (edited)

Great guide, very helpful for us newbies. I use the Circle app to buy bitcoin with my debit card, I can't believe how easy it is compared to a few years ago. I can then send the BTC straight to my Steem wallet from the Circle app.

$0.00

mark-waser (56) · 8 years ago

Thank you! Do you believe that Circle is an easier method than the above? What were the fees like? Is it worthwhile to switch to that after the $10 + SBD offer?

The next thing that I'm somewhat tempted to do is a Kraken guide for large deposits -- except that I don't see many newbies dropping as much in as D161T4L W15D0M is.

1 vote

raiderredjd (36) · 8 years ago

I used to use Coinbase until they took away the Instant funding option. I don't believe there are any fees with Circle. I only use circle now, but your mileage may vary!

The credit card is instant funding. The only problem is the ridiculously low $60/day limit (although maybe that will go up once my credit card company pays them).

There have to be some fees with Circle. How are you getting money into it? Credit cards charge merchants up to 4% which Circle has to pass on. Also, are you sure that Circle isn't charging basis points on conversion (that's what Coinbase is doing as well).

If you use your debit card, it is free. I think the CC charge is 3.5% or so. I'm sure with the BTC, they are making a profit on the buy/sell spread. It works almost exactly the same as the square cash app.

Hit depth limit, replying to you next highest message (is that the correct social protocol?)

Ah. I didn't think about debit cards . . . . I wonder why Coinbase doesn't allow debit cards. They can't be making that much on the spread between what the credit card charges and their convenience fee, can they? And it seems like they shouldn't need as tight a daily limit for the debit card either.

Yeah, Coinbase was allowing instant funding from bank accounts, as long as there was a credit card on file. My limit was $2000/day. Then, one day I couldn't do it. Really messed some stuff up for me. I was very happy with Coinbase until then.

Newbies Guide to Powering Up