How to Make Money 101 Part 2 (Steemit)
Steemit is incredible and super easy. The only thing is that it works with a cryptocurrency coin known as: Steem. You can post articles about nearly anything and people will upvote/downvote it depending on the content. The upvotes and downvotes pay you in what is called STEEM DOLLARS.
1. Sign up on Steemit, create an account and begin writing stories. Become active, you get upvotes for posting articles and for responding comments on other people’s articles. Write about ANYTHING!
2. As you get upvotes, you get paid. The money you get paid isn’t available until 7 days from when you post articles, but it will be available.
***It’s important to differentiate between Steem Dollars, Steem, and Steem Power
Steem: The actual currency used to power Steemit. It’s a cryptocurrency unit that works like an altcoin.
Steem Power: A stake in the Steemit organization. The more Steem Power you have, the more voter influence you have in the company and your upvotes are worth more. Also, if you invest in Steem Power, long term profit is guaranteed.
Steem Dollars: Worth $1 U.S. Dollar. You can trade these to either buy Steem or to turn into Steem Power for long term holding.
Okay, follow me here, it might get a little bumpy.
Here’s the tricky part: How to cash out. You get paid in 50% Steem Dollars and 50% Steem Power. Your Steem Power is basically a share in the Steemit world. When new units of Steem are added into the market 90% of those funds value are allocated to Steem Power. 10% is used for public trading.
What this means is if you have Steem Power you can either “power down” and turn your Steem into Steem Dollars or you can reinvest your Steem Dollars by “powering up” and turning into Steem Power thus you guarantee a long term investment since you’re part of the company but if you power up you can’t power down for I believe 2 years max. So again, powering up is LONG TERM investment but almost guarantees a bigger return.
The other method of cashing out is using your Steem Dollars which are worth $1 US dollar each for a clear 1:1 ratio between Steem Dollars and U.S. dollars.
You now have to play the market in order to make money off of your free Steem Dollars. You would go on Steemit’s “internal market” tab and use your Steem Dollars to buy Steem. You then will use Steem to turn into Bitcoin using a converter like Blocktrades which is super easy and charges a very minimal fee. You the send that Bitcoin to your wallet, and if you have Coinbase or GDAX you already have a wallet there. REMEMBER THE DEPOSIT ADDRESS?! Well here it is, this is how we use it. You then send your Bitcoin converted from Steem to the address, cash out to your bank account on Coinbase or GDAX and BOOM, free money.
Websites mentioned:
Steemit.com
please upvote me, i will upvote https://steemit.com/photography/@parmjit/best-photography-sikh-boy-vote-up-me
Very helpful. Thanks for posting!
Thank you! Sent you a follow!
Great info. thanks for posting - upvoted & following!
Firstly i would like to thank you for posting such a valuable post. It is a great post for beginners in this community. I wanted to know why the value of the steem dollars changes on our post. One day the value was 0.58 and the other day it became 0.5
It seem that Steem Dollars fluctuate based on curation and value. So if the post gets a lot of attention but by the end of the 7 days that you can cash out it receives less attention, then the curation value goes down and the value of Steem Dollars go down. Also, i Believe if the value of Steem as a coin goes down, it also decreases your value. And something I've just read is really interesting.
Theres is something also that is basically like an early commenter penalty. If you comment before the post is at least 30 minutes old, you will get a fee and it pays out less than you would have for waiting. If you comment 1 minute after a post is published you will only get 1% of what you would have gotten. 10 minutes will give you 10%, 20 minutes 20%, and so on and so forth. If the post is 30 minutes old and more, you'll get rewarded normally. Also, you only get Steem Dollars from your comments if people upvote them.
Hope this helped!