Now you've been paid in Steem Dollars - what should you do?

in steem •  2 years ago

So it's Steemdependence day. Your Steem account is looking rosy, you have a pile of Steem power & lots of Steem Dollars. Now you feel rich - what can you do?

1. Cash out (not recommended)
I wouldn't recommend this because the markets are very thin at the moment, and you won't get very good rates. You can probably cash out a few hundred dollars if you need it.

You need to convert your Steem Dollars to Steem, Steem to Bitcoin, then Bitcoin to cash

The quickest way is to go through Steemit's internal market. Then place an order to buy steem with your Steem Dollars. You can either take a current price, or place an order.

For the next part you will need a bitcoin wallet if you have one. (Although you can skip this step, read on)

The next step is to exchange Steem into Bitcoin.

There are a few places you can do this, but the quickest is probably through Blocktrades Send the steem to the address is says, and enter your Bitcoin wallet's receive address.

Then you can exchange your bitcoin into cash, or bank deposit (or other means) with something like LocalBitcoins.com.

LocalBitcoins has a wallet function which means you can send it Bitcoins from your Blocktrades exchange.

It's a bit hassley and difficult as the market is so illiquid now. But it is possible.

2. Convert your Steem Dollars into Steem now -> Then power up

Alternatively you can use your Steem to power up. This is probably the better option, as you're reinvesting in the site.

The question is whether you convert your steem dollars into steem now on the market, or wait for it to be converted through Steemit's conversion mechanism which takes a week.

I believe that at the end of the week, your steam dollars will be converted at the average rate on the exchange.

Personally, I think the value of Steem is going to keep rising, so I decided to convert my Steem Dollars into Steem while the rate is cheap. The USD value of Steem is up 67% today.

I'm powering up.

3. Hold your Steem Dollars as they are

Alternatively you can keep your Steem Dollars as they are. They should keep a fairly static value to the USD and also pay 10% interest. You can hold onto them until the market is more liquid. Then you could cashout or still power-up.

Hope that helps. Let me know in the comments if I've made any mistakes

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A better explanation than some others.

happy to hear this, let us build steemit.com to have a good future, cheers

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totally agreed.. steemit is the future

Wow, this is great information, thank you for sharing!!
Steem really has a lot of potential to be massive someday.
#upvote

I must say, I'm still in need for more info to understand all this...do you maybe can write a new article on how it works? that being said, i'm gonna follow your advice and get all my steem $ ---> steem and power up. Thanks!

Great post and great image too! :-D

CG

Great post

Very informative and I agree on all fronts. Thanks for the article.

Very useful post, thanks.
But now blocktraders suggest only dogecoins(

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I saw the same thing this morning.

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Poloniex.com is working with Steem and Steem Dollars.

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I think it is more easy to get doge coins and can exchange it to bitcoin any where at any time , instantly.. you can do it with shapeshift.. it is instant.. i use it mostly..

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Thank you for posting! Did you find a solution for this? On the site for me now, it says that all Steem options are under maintenance. Has anyone else encountered this?

So interesting!!! thank u!!!

Thank you for writing this! I need help, obviously. Have you done it yet?
I have Coinbase, Paypal and Simple Bank. I also have a breadwallet ios app.
Which one has my Bitcoin wallet?

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Coinbase would have your bitcoin wallet. On your home screen you'll see the (?) Wallet Address. Click on that and it'll give you the bitcoin wallet deposit address you can use to deposit the bitcoin.

I can't figure out how to buy steem. Can anyone help?

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Let me know if you still need help with that. :)

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I dont understand ... I see on Bittrex that I can buy SBD. If i buy SBD on Bittrex, will i still get 10% interest?
Or do I need to keep my SBD on Steemit or something?

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That's a very interesting question. Been googling for this the last 30 minutes, but can't find the answer.

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You need to keep your Steem dollars on Steemit to earn interest.
Bittrex will not pay interest on Steem or Steem Dollars or any coin.
Kucoin will pay gas on NEO but it's the only exchange I know of that does that.

Thank you so much. Newb here. And now I finally understand exactly how steemit currency works. :) Sad to hear the market is thin atm though. I love posting here regardless though.

a must read!!

Still very valuable information! Thx

I was looking for this info !! Thanks much !

Super ultra helpful! Exactly what I was looking for :-D

This is a good article. It explains a lot. Thanks!

Hi there,

Great post, thank you - however I am wanting to resteem it but don't see the option to do so...?

Great article! Now it makes sense to me. Thanks.

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Hi Cindyvan :)
We run a steem meetup on the last Thursday of each month, in the beer garden at the Jade on Flinders St.

Next one is on March 29th, from 6pm.
Please join us any time you're free, or hit me up if you have any questions.

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Hi @cindyvan

Next Adelaide Steemit meetup is on Thursday 31st of May 2018!

6pm onwards @ The Jade 142-160 Flinders Street.

Further details about the meetup can be found here

Hope to see you there, have a great day :) Stef aka @o07

DQmUn5C7s76WQQnhMv8cEzLxzDwEGy53GaDRVMRrkUw9Di6_1680x8400 (1).jpg

thanks for a great post Alex, I'm very excited about learning how the theory applies to real life and which of the three options will become my favorite. I agree with you, as far as I have heard, the value of Steem will keep rising. Cheers!

Good read. Thanks a lot for the detailed guide.

Can someone show me in a breakdown - like an excel chart that explains what each of these mean?

  • Steem
  • Steem Power
  • Steem Dollars
  • Savings
  • Estimated Account value (in what? US dollar or steem?)
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Ha, I'm still waiting for this too!

Thank you for sharing this article with us. Very informative and helpful. Will keep it in mind as future reference! Upvoted! ✌️ ✌️

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Update

Check out my latest post and show your support by upvoting it !!!
https://steemit.com/life/@benjy87/you-wanted-something-interesting-you-got-something-mind-blowing-2017910t20740270z

Thank you!

Good starter article. I wonder how long before Steem is on the major exchanges like Poloniex.

upvoted! nice

thank god someone was able to explain this to me

Is the steem internal market closed?

Remember that the value of STEEM will only rise in these early stages. The inflation rate of STEEM is high, so the day when Steemit is not gaining any more popularity I think maybe the currency could even loose value every year.

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Might want to revise this comment.... bad info.

Great article. Thanks a lot.
I follow you now.
--> @musiol

Love the features in steemits I think it is quiet fair. Thanks

Thank you for bringing this to such a clarity. Appreciate folks like you reaching out to support us. We are all in this together! Blessings to All!

If I am understanding correctly the Steem Dollars are not actually an investment on the site? So I would be better off powering them up to Steem?

Do Steem Dollars serve any other function other than collecting the 10% interest?

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At some point it's considered that we might use them as currency between us. Also, given the amount of people wanting to cash out of Steem Dollars today - you might be able to buy them at a significant discount. Then once the markets get deeper you could realize that gain.

I guess their purpose is to solidify the USD value of rewards. If the Steem price is illiquid and flip-flopping everywhere, the Steem Dollar is a way of keeping that value fairly solid.

That's the best answer I know. If @dan or @ned want to give a better answer, they're welcome

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I like keeping some Steem around. Someone might really need it on the internal market. I could use it to help them out.

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You can power them up that is a good use for them, but also you get paid interest just for holding them. Plus as @alexc points out you can use as currency between other Steemers. The advantage of this is that you can buy Steem at a better rate than an outside exchange. In time you'll have some serious leverage both on and off the site.

Oh and Blocktrades say that they'll have a way to convert SD to BTC in a few days, once a market is established, that will prove very useful.

CG

Nice, this answers a few of my questions.

Good explanation but I'm confused as to what the upgrades this article is talking about by using STEEM

Gute Erklärung danke

need more info to understand this !! keep going

This is an excellent article for newcomers. I just arrived straight after getting my account approved. Thanks.

After reading your article, the whole Steemit payment setup made sense. I can now easily exchange my Steem and Steem Dollar to Bitcoin or any alts I want. Thank you for the breakdown.

Helpful

I also liked your explanation, it was very logical (Y)

Good explaination for us who is still new but interested in investment. I am thinking to buy some steem dollars by cash, and reinvest in steem, can I do that? I have no idea how to buy steem dollar directly. I would appreciate if anyone here can give me some advices.

really good for a beginner like me ahahah.

I was searching about how to cash out steem? Reach on this page. It helped me a lot to understand the procedure.

This was a better then some of the other here. this was very helpful. Thank you