SBD, STEEM and STEEM POWER made ridiculously simple for newbies and beginners!!

in steemit •  7 years ago 

What is the difference between Steem Dollars (SBD), Steem and Steem Power (SP)?

This question bugged the hell out of me the first few days on steemit and everywhere i tried to find an answer (oh yes, the Internet is filled with answers, I know), it was always made impossible for us beginners to understand with complicated technical term and comparisons and trades and trading platforms and what not!!

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While those information are eventually important and we all should know them eventually, at first, as newbies, we need to understand the very basics of these three terms. Once we get used to these, and understand that these terms should not always be interchangeable, feel free to proceed to and learn the more technical details.

So let's get started. STEEM DOLLARS (SBD) are basically supposed to be equivalent to USD. That is 1 SBD = 1 USD.

STEEM is the actual cryptocurrency (you know, like bitcoin, ripple, litecoin etc) of the platform. This means if you are a cryptocurrency trader, STEEM is what you will be trading. (Will not go into anymore detail about this to avoid making things complicated).

Now, the price of STEEM on the market fluctuates, like every other cryptocurrency around. Say for example, you have 3 Steem Dollars (SBD) in your steemit account and the price of STEEM right now is USD 1.5 in the market, you should be able to convert your 3 SBD (which is essentially equal to USD) into 2 STEEM. Similarly, if the price of STEEM is ** USD 1,** you can convert your 3 SBD to 3 STEEM.

Now that Steem and Steem dollars are out of the way, What is STEEM POWER (SP)?

SP, in the simplest of terms, is STEEM. 1SP = 1 STEEM As simple as that.

What is the difference then? Well, SP is STEEM invested for long term. That means, whatever SP you have in your steemit account, even though they are essentially STEEM, you can not withdraw them whenever you want. After you begin the withdrawal process, it takes takes a long, long time (Thus the term Long Term) for the withdraw to be complete. How is SP an investment? This is very simple. The more SP your account has, the more your votes will be worth and thus the more you will earn from Curation Rewards by upvoting posts. It's like when you have money in the bank and the bank gives you interest, except, on steemit, the interest is you curation reward.

That's it guys. Hope this post helped. Start Upvoting to increase your Curation Rewards. Resteem this post and maybe more people out there might be benefited.

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STEEM and STEEM Dollars are welcome too!!

Peace!!

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Thank you for simplifying life! Finally after a month or so I get the answers that will help me moving forward. I am in it for the long term, this is a community and we need to do all we can to back it up. I try to make good useful posts and have some fun as well. There are some amazing users out there and lots to enjoy and learn. You're among them and I will vote for you as you make sense! JV

Thanks very much for your kind words :)

My new "Made ridiculously simple for newbies and beginners!!" is out now. Make sure to check it out and let me know your thoughts. What my readers think of my posts are invaluable to me.

https://steemit.com/steemit/@simplifylife/difference-between-hot-and-trending-tabs-made-ridiculously-simple-for-newbies-and-beginners

Cheers

Will do that today thank you! JV

Great Post for the noobs on STEEMIT - I've only been on STEEMIT a little over 8 weeks I believe and I consider myself pretty intelligent - Yet the whole STEEM, SBD, SP was a tad confusing at first -

Since this post was written very straightforward and easy to comprehend - I'm going to suggest you write a post about Posting, Curating, Commenting, Upvoting, and how it all comes together -

I thought I finally had it all down 100% yesterday with the payouts and how they are paid, when to Upvote - when not too (especially since there are many conflicting views on the subject)

Back to yesterday - I finally learned that commenting on a post that was 12 days old and already had its payout - could still earn me $. I was certain that after 7 days that was it - but I commented on the old post and was upvoted by the Author " @broncnutz " who is awesome by the way and very helpful, and I happened to check my pending payouts before paying my head down and sure enough - I had a pending payout from my comment to @broncnutz for like $.38

I'm still unsure as to how the older posts payouts - if it's 7 days from leaving the comment or what - but that was a huge oversight that I missed because I had been hesitant to try to engage in a post that was more than 7 days old as I thought it likely would not be read and thought I'd receive no payout.

My suggestion for you to post another post on "phase 2" learning on STEEMIT is just a suggestion because I like the way you wrote this post and explained things to the noobs - that is all - do as you wish and consider it a compliment if you decide to write another learning post or not - STEEM ON!

My new "Made ridiculously simple for newbies and beginners!!" is out now. Make sure to check it out and let me know your thoughts. What my readers think of my posts are invaluable to me.

https://steemit.com/steemit/@simplifylife/difference-between-hot-and-trending-tabs-made-ridiculously-simple-for-newbies-and-beginners

Cheers

Aweome - I'm on it brother!! Actually can't wait to read it :)

Thanks very much for this input. I will definitely post on it once i simplify it down!!

Here's a little bit about you 7 day confusion : The original post was more than 7 days old and has paid out, so even if you upvoted on that you wouldn't get any curation reward. BUT...BUT BUT BUT.....But you did not upvote, you COMMENTED. Your comment is a NEW POST now!! The authou upvoted on your COMMENT which is an active post now (for the next 7 days). So any upvotes you receive on that COMMENT you will receive author rewards on that, and the people who upvotes on that comment will receive curator reward because, even though the original post has paid out and not active anymore, you comment which is a fresh post, is technically active.

This is how I understand this situation. I'm not an expert, but i'm just trying to be logical here. Hope this answered your question!!

Thanks man - That actually makes a lot of sense - As a comment is actually considered a post - thanks so much for clarifying that for me man - Much appreciated!

Glad i could help!!

I think you captured the informations great! Resteemed so more people can see :)

Thank you very much!! Really appreciate it!!

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This post received a 3% upvote from @randowhale thanks to @simplifylife! For more information, click here!

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SBD is tradable on markets now as well

Yes, thanks :)

I didn't wanna put too much info on trading in the post to keep it as simple as i can for beginners haha!! But thanks for your comment!!

Cheers!!

Great post...followed and upvoted.

This helped a great deal.

Do I want to move my steem to my steempower?

If you're not looking to start trading with your steem, I think you can use some of it to power up your steem power. How much of your steem you want to power up is entirely up to you. But if you are in it for the long term and NOT looking to trade with your steem anytime soon to try and make some quick money, i would suggest convert abou 50-60% of your steem to Steem Power. But in the end, it's a decision you have to make for yourself.

Cheers!!

Thanks for the 411...appreciate the guidance.

Glad to help :) I myself am learning and try to share whatever i learn with my followers. At the end of the day, I try to make this a better community!!

I agree.....for now I am pecking my way through....doing what I can with what little I have picked up. I try to follow as many as I can while also posting as many comments are time will allow.

I upvote the hell out of this site but I keep running out of upvote power. I didnt know that could happen so I have to cool it for set periods of time until it recharges.

Yeah i do that every day. I have about a 10-12 hour period everyday when i don't upvote.

Thanks for the information....I read a post liberosist that really helped out....I didnt understand it until I read what he wrote.

Votes are a precious thing.

Yes especially for beginners like us, not merely because of the curation rewards, but for building long lasting relationships with other authors and that's how Steemit has been running and i don't see this changing!!

My new "Made ridiculously simple for newbies and beginners!!" is out now. Make sure to check it out and let me know your thoughts. What my readers think of my posts are invaluable to me.

https://steemit.com/steemit/@simplifylife/difference-between-hot-and-trending-tabs-made-ridiculously-simple-for-newbies-and-beginners

Cheers

Thank you for your comment and i have checked out your post. Now please kindly remove this link from the comment. This is not a post promotion platform.

I do intend to help newcomers with their post promotion soon, maybe once i reach about 300 followers. But this is not that kind of post. So i request you again, please remove the link from the comment.

Thank you very much for understanding. I wish you good luck and welcome to steemit.

Hi this is the last time i am requesting you please remove this link. i really don't want to flag a post of a newbie because i know this might hurt your reputation. But if you do not remove this link soon, i will have to flag it.

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