Which One to Choose? Default (50%/50%) or Power Up 100%
I am writing this post for those who are not clear about which one to choose. I made mistakes before. I don't want you to make the same mistakes.
Let us look at the different choices for post rewards between 50%/50% and Power Up 100%.
- 50%/50% - This rewards in half STEEM Power, and half liquid STEEM / Steem Dollars. The ratio of liquid STEEM to Steem Dollars rewarded is based on network conditions at the time of payout. This is the default payout option.
- Power Up 100% - This option rewards the post in 100% STEEM Power.
Example
Let us assume your post has $100 payout as shown above. In the current market, if you chose 50%/50% payout 7 days ago when you first posted, you get a payout of 296.64 USD (50% SBD + 50% STEEM) now. On the other hand, if you chose 100% power up, you only get 75 USD (50% STEEM + 50% STEEM).
The difference is almost 4 times in current market! In another word, you have just lost 75% of your payout if you chose 100% power up.
In conclusion, you only choose 100% power up if you predict the price of STEEM to be less than USD 7 days from the time you post it. In another word, you predict you can buy more than one STEEM with one USD in 7 days. Current STEEM price is 6.09 USD. It's very unlikely the STEEM price will drop below one USD in 7 days so I would choose 50%/50% for now. After the payout, you can then convert the SBD to STEEM and then Power up!
Please also note that you can't go back to change your choice between 50%/50% and power up 100% after you post it.
I hope this helps as you try to navigate through steemit platform among many other new things to learn! I'll make another post when it is time to be better off to choose 100% power up. I hope it will never happen.
Please let me know if there are any other topics you would like to see. Simply make a comment to let me know and I'll do my best to cover them in the future. Thank you!
Previous Posts
How to Maximize Your Overall Voting Power
In your statement
you say "value of USD to be less than STEEM." Can you please clarify what is the unit of "value"? Do you mean "if the price of STEEM today in USD is less than what you predict it to be in seven days future"?
It has nothing to do with today's STEEM price. It's when you predict USD is going to be more expensive than STEEM in 7 days. i.e. you can buy more than one STEEM with one USD. Thank you for your question!
This is great information that all the newcomers should see. Posting powered up is really a waste right now and nobody should be doing it.
Thank you for the insight! I appreciate your comment. :-)
My pleasure! :)
Let me get it better. Because yesterday I was told that its better to keep your earnings as sp and not as Steem. So what you saying is we shouldnt power up when writing the post but after payout we should convert the sbd to Steem and then power up?
Exactly! We choose 50%/50% and after the payout, we convert the SBD to STEEM and then Power up! We end up with 300% more STEEM POWER.
I had a hunch that 50%/50% would be better and this confirmed it. Bookmarking that link for later. Thanks!
You're very welcome! I'll make another post when it is better to choose 100% power up.
Thank You There is so much to learn. Much appreciated.
No problem at all! It's my pleasure :)
Still learning all the time @cheneats. So valuable to have this information now. Thanks so much. Cheers. 🍹
You're very welcome. It's my pleasure. Cheers. 🍹
Great advice...however are you a minnow now?
Thank you! Maybe a week or two. ;-)
Mr. Cheneats. what in your opinion is the best time to take your Steem Dollars to market to transfer into Steem. When Steem is higher than Steemdollars or vice versa?
Of course, it's when Steem Dollars are higher. However, we don't know when the market is going up and down. Therefore, I convert all my Steem Dollars to Steem immediately after I receive the payouts. In the long run, "dollar-cost averaging" works :-)
that is what I thought, but I wanted to confirm and you seemed a good source to ask for a second opinion ....thank u so much
You're very welcome, my friend! And thank you for trusting in my opinion ;-)
Another one I have bookmarked. You've made some really good posts for us minnows.
Thank you! I wish I had known this when I first started. There you have it now. :)
Made my first post today - this was quick and helpful. Thank you :)
Congratulations! That was a nice start :)