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RE: Update on How to buy Steem Power, the quick and easy way
@oaldamster - So, I bought STEEM coins on bittrex before getting a steemit account. In order to convert to SP, I'd have to withdraw on bittrex to my steemit wallet address? Or if using another coin to buy SP, withdraw into blocktrades to convert?
Also, am I correct in saying that converting STEEM => SP is only beneficial if you think your upvotes and/or content and/or comments will earn more than the STEEM is worth? I'm a little confused on the use case for powering up/down.
Anyway, thx for the writeup!
If you have Steem on Bittrex you can send the right to your @hornetnz account. And then from your wallet do a Power Up from Steem -> SP {Steem Power}.
When you want to use another Crypto, one that is supported by Blocktrades, you can use their service right away to have it converted from Dogecoin, for instance, to Steem Power.
SP is your Stake in the Steem blockchain, the more you have the more dividend you get. When you have a very small amount of Steem Power in stake you will hardly notice this dividend. But when you have a couple of thousand SP you can notice this as your Steem Power will grow every minute or so. The more SP you have in stake the more and faster this adds up.
Furthermore more SP in stake gives you more voting strength. It will determine how much a post gets in rewards, from the rewardpool, and how much you get for curating that post, after 7 days.
Also from 500 SP upwards you can use a voting slider, so you can set your vote from 1 to a 100% at will. So you can give more upvotes for more posts, without your voting battery getting drained right away.
Holding SP is for the long term. Building it up gives more influence on the blockchain, higher payouts and more dividend.
But it takes 13 weeks to Power Down the SP out off stake and into the liquid Steem form again.
Hope I was able to clearify it a bit more for you.
Good luck at Steem!
Thanks for the explanation.
But so is STEEM coin, no?? Except STEEM price is tied to the crypto exchange? And the dividends of SP are tied to...?
SP is just Steem that has been put in stake.
Steem is an average market price of 3.5 days.
The dividend is a percentage of the Steem that is created with every new block. Part of that is being reserved for dividend payments. Think it is about 2% a year. But it is added to your SP as soon as it reaches the value of 0.001, it would be ~ 0.000228 percent per hour.
Because Steem has 3 second blocks it would be about 0.00000019%. That would give a dividend multiplier per 3 seconds of 0.0000000019, so it will take quite some SP to be noticed. About 500'000 SP would it take to add 0.001 SP every block. But that would add up to 28.8 SP dividend per day.
This is merely an example, could be that I'm a bit off with the exact numbers. But basicly this is how it works.
Thanks for the clarification. I'll get a handle on it eventually! :)
It is my pleasure, it can be a lot to take in at once. ;-)
Have a good time at Steem.