Hi, steemians!!
How are you all?
May all of us always be protected by the almighty and always be given health.
This time I want to finish the homework given by professor @yohan2on whose topic is about Stablecoins. The professor gave several coin options that we can raise to discuss, this time I will discuss one of these coins called Steem Backed Dollars (SBD).

source

(SBD) What Is It?

First of all, before we get into the discussion about SBD, I would like to inform you that I just found out that the complete SBD stands for "Steem Backed Dollars" hahaha. Because all this time I only know that SBD stands for "Steem Dollars". Okay, that's enough for the notification, let's get to the main discussion.

Steem Backed Dollars or often known as SBD is a coin that comes from the steemit platform which is used as a reward for steemians and also as a coin that backs up the price of its brother's coin, namely STEEM.

SBD was created as a stablecoin that pegged its price to the fiat currency, namely the US dollar. The price of 1 SBD is made as much as 1 US dollar, which means that SBD with US dollars has a different ratio of 1: 1.

As I explained earlier that SBD was made as a coin that backs up the price of STEEM coins, this happened because as we know that all existing Cryptocurrencies always have very high price fluctuations and threaten coins that tend not to be too well known like STEEM, to To overcome this, Steemit makes SBD as their original Stablecoin which will help STEEM in overcoming very large price fluctuations.

Where Can I Get SBD?

After you saw the discussion about SBD, surely you will be wondering how to get it. OK, I will explain it to you.

1. Post on Steemit

The first thing you can do is to post on the steemit platform, and from each of these posts, steemit will give you a reward in the form of SBD. Actually, you can change the form of reward to Steem Power, but I would rather take 50% SBD and the remaining Steem Power due to the rising SBD price.

There are several payout options that you can take to reward your posts:

• 50% SBD / 50% SP
  This means that your payout will be divided by half the SBD and half the Steem Power as I explained earlier.

• Power Up 100%
  Your payout will be fully in the form of Steem Power

• Decline Payout
  That means you don't want to take rewards from the results of your posts.

For an example of the payout option "50% SBD / 50% SP" you can see in the image below.

2. Exchange STEEM for SBD

The second way is to exchange your STEEM coins for SBD. You can do this by exchanging it on the internal market that Steemit has provided on the steemit wallet.

You can directly access it on the wallet from your account.

3. Buy SBD on Exchange

There are several exchanges that trade SBD on their marketplaces, namely: Upbit, Bittrex, and HitBTC.

Of the three exchanges, I highly recommend Bittrex for you to use because Bittrex is very user-friendly and all transactions can be done quickly.

What Can I Do With SBD?

Many people still misunderstand the uses and what they can do with SBD. There are several things you can do if you have received your SBD.

1. Convert it To Fiat Money

The first and most frequent thing to do when you receive/get SBD is to sell it on an exchange so that you can exchange it for fiat currency that you can trade on your daily basis.

There are several exchanges that provide a place to sell your SBD assets. According to CoinGecko, there are 3 exchanges that provide a marketplace for trading SBD: Upbit, Bittrex, and HitBTC.

source: CoinGecko

The exchanges I recommend that you use as a place to sell your SBD are Bittrex or Upbit because indeed many other steemian friends often use these two exchanges. As for HitBTC, I don't recommend it because on the exchange there is very often maintenance on the SBD wallet, so we cannot deposit or withdraw our SBD to the wallet at HitBTC.

The way to sell is very easy, that is, you just have to create an account on the Bittrex or Upbit exchange, after that you just have to send your SBD from steemit to the exchange and you can immediately sell it.

SBD Market Display on Upbit

SBD Market Display on Bittrex

2. Power Up To Steem Power

The second thing you can do with SBD is that you can add your Steem Power by exchanging your SBD to Steem then entering it into Steem Power or commonly called SP. This is done so that your vote power in Steemit is getting bigger, if the greater your Steem Power, the greater the reward the curator will receive from the results of your vote.

The first step is that you have to exchange your SBD into STEEM first, the simplest way is that you just have to exchange it on the internal market that has been provided by Steemit on Steemit Wallet.

After your SBD has become STEEM, then the next thing you will do is to do a Power Up on your wallet. The way to do this is by selecting the "Power Up" option which is an additional option on the STEEM coin.

After that you fill in the number of STEEM that you will power up, here I will give an example of increasing my Steem Power by 0.178 STEEM.

Then Steemit will ask for confirmation to enter your STEEM into Steem Power.

Then you guys wait a while and it's done!
Your STEEM coins have entered Steem Power. Like my example, the STEEM coin balance which was originally 0.178 STEEM has changed to zero. On the other hand, the balance of Steem Power, which previously amounted to 55.766 SP, now becomes 55.944 which indicates that I have succeeded in Power Up STEEM to Steem Power.

My Wallet Before Power Up

My Wallet After Power Up

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That's my explanation of what Steem Backed Dollars (SBD) is and how to get it and what we can do with our SBD.

Hope it is useful for all of you and also for me. Sorry if there are errors in writing, and you can let me know by writing a comment in the comments column.

I'll see you in the next post!

CC:

@yohan2on
@steemitblog
@steemcurator01
@steemcurator02