This is possible because the platform, Steemit is built on a new type of digital currency called Steem. (Think Bitcoin, which is a type of digital currency that has existed before before any steemit.)

Everyday, the new currency unit is created by the network and distributed to its users, which can redeem this unit of digital currency with real real money. And it's completely free to start.

How does Steemit work?
In some ways, Steemit is similar to other digital currencies. Steemit currency units can also be traded, bought, and sold on the open market like any other digital currency.

With other cryptools like Bitcoin, the actual currency units created every day are distributed to people who run special bitcoin software programs on their computers that perform a process called Bitcoin Mining. The amount of computing power you have determines the amount of money you get, as well as the Steemit.

Steemit allows the mining of currency as well, but not the main way to earn money. Everyday, a new Steemit currency unit created by the network and distributed to the people involved with this site. The more you get involved, the more you get.

People who make content appreciated for their content. People whose upvote content is appreciated for helping to curate the best content available on the site. Comments that add to the discussion are also paid.

The 3 Steemit Currency Units:

One big difference between Steem and other digital currencies is that there are three types of units of the Steemit

By keeping your currency as a Steem Power Unit, you will be able to earn more money in the long run because you basically have ownership in the network. As the network grows, so does your piece of cake.

And you will be greatly appreciated along the way. How to set it now, 90% of the new Steem Currency generated daily is distributed to people who already hold Steem Power Units in the form of additional Steem Power Units. (The other 10% goes to creators and curators).

Half of the salary you receive for your content will be in the Steem Power Unit.

In addition, the

1. You can hold Steem Dollars, which save money on the network and pay you 10% interest. You can sell it anytime. If you think the value will go up and want to sell at some point in the near future, this is your best choice.

2. You can swap your Steem Dollars for Steem Power. If you want to invest in the future of the currency and reap the greatest rewards, here's how to do it.

How does the newly created Steem be distributed daily?

Everyday 90% of the new Steem units are rewarded by those holding the Steem Power Unit.

10% of new Steem units are paid to creators, curators and commentators.
When you create content that actually makes money, 50% is paid to you in the Steem Unit Dollar which can be exchanged for real money immediately (or converted into Steem Power). The other 50% is paid at Steem Power. Steem Power Units are locked for 2 years.