The Steemit Newbie's Comprehensive Guide To Understanding Your Wallet by @merej99

last year

A Comprehensive Guide To Understanding Your Steemit Wallet

I have seen too many people getting frustrated because they love Steemit, but they absolutely do not understand their wallet. @karenb54 - I dedicate this to you. I hope it helps, love!


Trust me - I was one of those people because I do not come from any kind of cryptocurrency background. So I'm going to try and give you a step-by-step understanding of all the stuff in your wallet, what it means to you, and how it affects Steemit. (NOTE: If anyone with more knowledge sees any wrong information, kindly let me know so I can edit! Thanks.)

Of course your wallet is confusing!

You've got:

STEEM, STEEM POWER, and STEEM DOLLARS!

For newbies, they should be called something like:

Power this shit up, Road to being a Whale, and You can cash this.

That would have made MY life a lot easier in the beginning! But I digress.


STEEM

STEEM

STEEM can be exchanged in markets like Poloniex and Bittrex, but the last time I checked 1 STEEM is worth about 23 cents USD. In the markets it is listed as STEEM.

From what I understand, the reason why the value of STEEM keeps dropping is because there's too much liquid STEEM flooding the markets.

Remember that old lesson from school about

Supply and Demand?

Yeah, well there's too much STEEM floating around and not enough buyers... which is why Powering UP is important.


STEEM POWER (SP)

STEEM POWER SP

Your STEEM POWER (SP) directly affects your voting power and how many vests you have. I'll get to that in a moment.

Here are a few reasons why Powering Up your STEEM is important:

  • It takes STEEM out of the supply chain (which, as I previously mentioned, is flooded.)
  • It becomes a long-term investment into Steemit because once you're powered up, those "funds" are locked into a kind of escrow.
  • Your SP directly affects your vests and vote power. The more you have the more powerful your vote.
  • SP generates interest.
  • The moment you select Power Down, the initial amount in your STEEM POWER account is then divided into 104 equal payments.

So, if you only have 100 SP in your account
and you decide to Power Down...
100/104 = .96
With the STEEM market at approximately 23 cents USD,
you would get a whopping WEEKLY payout
of about 22 cents USD.

Still not sure why STEEM POWER (SP) is important?


Let's talk VESTS for a moment

To see your account go to http://Steemd.com/@YOURUSERNAME

This is my account:


STEEM POWER = VESTS

When I reached 1.00M vests, I got my vote slider.


IMHO - the vote slider is a royal pain in the ass and totally inappropriate to anyone beneath dolphin or whale status. This is why I vote 100% and attempt to upvote as close to 40 votes/comments a day... because as a minnow, it doesn't matter!

RANT OVER


I do not understand the conversion of STEEM POWER (SP) to vests. I do not know where they get these numbers or what the calculations are.

That being said...

  • For every $1 SBD (STEEM DOLLARS) created for payouts, there is also 9 STEEM being created.
    SBD and STEEM separate and individual "currencies"/tokens.
    In order for your STEEM POWER to generate interest your vests have been mapped to STEEM, otherwise your vote power would probably never increase without directly investing money into it.

  • This is also why STEEM should not sit in your wallet for very long!
    Either Power Up, Trade or Sell
    because letting it sit there does absolutely nothing for you or the Steemit economy.

How do I know if I'm a minnow or a whale?

If you're reading this, you're probably somewhere between plankton and a minnow. Your "status" is directly correlated to how many vests you have.

I found a wonderful explanation by @beanz

  • Plankton = up to 1M VESTS
  • Minnow = >1 to 10M VESTS
  • Dolphin = >10 to 100M VESTS
  • Orca = >100 to 1,000M VESTS
  • Whale = >1,000M VESTS

As you can see from my vests, I'm a mid-sized minnow almost half way to being a dolphin!


STEEM DOLLARS (SBD)

STEEM DOLLARS SBD

Your STEEM DOLLARS (SBD) are tradeable tokens on cryptocurrency markets such as Bittrex and Poloniex.

The last time I checked, 1 SBD was worth about 92 cents USD. Whatever amount you have in SBD in your wallet is easier to calculate into "real funds" aka fiat aka CASH.

  • Your SBD accrues interest the longer you keep it in your wallet.
  • While it has dropped in value, it is the more stable of the two Steemit currencies.
  • It does not affect your vote power or vests

SAVINGS ACCOUNTS

With two tokens (STEEM and SBD), there must also be two savings accounts.

STEEM SAVINGS

STEEM SAVINGS

SBD SAVINGS

SBD SAVINGS

I admit that I have not done a lot of reading about the savings accounts, but here is what I understand about them. The purpose of the savings account is to LOCK your funds in a safe, encrypted space for up to 3 days. In essence, this is an extra security measure in the event that your account is hacked. It gives you enough time to secure your account, cancel any pending transactions, and do everything in your power to recover your account.

For a deeper understanding of the Savings Account,
read @steemitguide's blog
Guide on Steemit Savings Account, Everything you need to know about this Feature that Helps Secure your STEEM & STEEM DOLLAR


ESTIMATED ACCOUNT VALUE

ESTIMATED VALUE OF YOUR WALLET

Because most digital currency is tied to BTC, your estimated value is going to have its highs and lows, changing with a fairly volatile market. Your Estimated Account Value is the approximate value of your entire account.


More Newbie Educational Material

* Best Practices for Steemit Newbie Artists

* My 90 Days. Expectations. Thoughts on Curation and Setting Goals

* Strategy for following ENGAGED people on Steemit

* Optimize your Steemit Posts

* A very basic guide to understanding Cryptocurrency


I created this 100% Steem Power badge.
It's free to download and use
Challenge accepted from @lukestokes

Your comments, upvotes and shares are always appreciated.

Thank you.

For older content, visit my Steemit blog page

witchy merej99
Meredith Loughran is protected by Copyscape
merej99 is verified by Steem-verify

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
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Thanks for this frank guide, as a noob would you suggest putting 100% into powering up?

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If it was me (and I was a noob at one point), I would definitely put efforts into powering up as much as possible - unless you absolutely needed the funds. And I was also at a point when I used every penny earned to buy food too so consider your needs and goals. Welcome to Steemit! :)

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Thanks for taking the time to field my query, appreciated 😀

Thanks a lot, very helpful to me and written easy to understand. Great job. Good luck!

Thank you for this guide! I am new to Steemit and this guide made understanding the wallet a breeze!

"Power this shit up"
Yup LOL!!

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LOL - sometimes I write like I talk. hahaha ;oP

Great post and I do hope it helps @karenb54. I'm adding this to my useful steemit links to pass about when I see someone asking about wallets.

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Thanks Sarah! How are things on your side of the pond - kids...sis...life..?

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Busy lol, kids are off school for half term and I've been hit with a cold lol. L is doing quite well spending more time at her house and trying to get back to normal. and at the moment I've reinstated my tin can/perspex overhead camera rig to try and make some simple videos. talking and arting is hard lmao.
And how is life treating you at the moment. I hope the boys are well and that the house feels like home to you all now.

Thanks for another great guide! I'll try to get this added to the "Welcome Page" :)

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That's awesome @timcliff. Thank you for considering it. If I can help in any other way, just let me know :)

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Will do :)

I like your 100%SP badge. I'll use that - thanks! :D

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Sweet! The more the merrier :)
[edited] There are links to larger versions on luke's challenge post - but they don't have the gray background.

Fantastic. exactly what I've been looking for. I'm still a little puzzled but I'm now going to power up as per your advice!

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Ah... I should put a little disclaimer stating that I am not a financial advisor. LOL But if you have faith in the sustainability of the platform and have whale goals, that's the route I would personally go. I'm only just starting to do the 100% power up. Previously, I really needed every cent! So consider your budget too. It takes time to build a following - but stick with it!

Vests get more expensive everyday. As of this writing it 1 vests is 405 steem. Last week it was 300 something.

Back in the day it was 1 vest = 1 steem.

Therefore Vests get more expensive everyday. And I really think that it is vests that that effect your voting power more.

Vests DON'T have interest. You only earn vests through posting and curating.

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Yes, thank you @mctiller. I probably should have included the fact that vests do not get interest, but I was afraid their hair might catch fire. There is so much to learn and a steep learning curve for newbie bloggers and anyone, like me, who's never had to deal with cryptocurrency until now.
AND WOW! I think I was a month too late in joining when it was 1 vest per Steem. wahhhh! :( I'm even noticing the higher our reputation score goes, the harder it is to get to the next level. Kind of feels like a hamster wheel sometimes! LOL

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You're correct about the rep. Getting from 60 to 70 is harder than going from 50 to 60.

And I'm still not sure if I understand Steem Power, but I really think it's the number of vests you have that is the important number.

Great post mere, upvoted here and reddit, resteemed and retweeted :)

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Thank you @ausbitbank
I think, thanks to your work with IFTTT, it may already be on reddit?
I appreciate the Tweet too. I've woefully neglected all other social media since joining Steemit. :oP

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Aha, yeah it was already on reddit and twitter thats how I found it :)

What do you do with your sbd? Besides wait for the local food truck to start excepting it.

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LOL @alaqrab - When I started out I nearly cried trying to figure out how to cash out because I thought I lost 20 SBD. I think that will have to be the next guide. I've used Bittrex, but I find Poloniex to be a bit easier on the eyes. There are a ton of digital wallets out there, but I will probably focus on these two.

This is a very well written post that helps people understand their wallet better, I sent it to a couple of friends that just started on Steemit. Thanks so much for putting this together.

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Thank YOU, @luzcypher - I've got a few more coming based on the questions I've seen from new people. Stay tuned! :)

This BY FAR is the most helpful guide on this subject I've seen.
Can you do one on upvotes ? To this day I haven't a clue how much I'm getting taken out , where it's getting taken out and how do I know how much power I have w/ my upvotes. Thanks!

Edit: speaking of which I'm unable to upvote nor resteem this post :(
Edit 2: Got it to work! :)

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Hi @steemitqa - I will definitely put that on my writing list. Thank you for the suggestion and the compliment! :) <3

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Wow, merej99, what an awesome post! I'm replying here because I'm also befuddled by the votes. I just took you down 6 cents, although I'm not a-skeert of you slashing my tires - I don't have a car, lol! I was not on for a couple weeks, but that was happening before, too - some up, some down. And may I say, who wouldn't want to be a dolphin? They have language and names, and can create, w/ their language, spontaneous play/jokes with their humans. I bet you know that, living in FL. Plankton (lmao when I saw the steem food chain) is just as important, but, it's plankton. Great post, thanks!

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That's it, man, you're on my list!


Ima find you! LOL

Seriously though - glad to see you back. Hope there are more ups than downs to finish the year right :)

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HAHAHAHAHAHA! U funny. Is that lady throwing baby powder on herself? hilarious - best-smelling beeoch ever... that's what I want to be. Yes glad to be back - soon!

Awesome post! I love your steem power badge! 💪💙💪And also agree with timcliff about getting it on the welcome page! I especially liked the vests explanation on the levels from Plankton to Whale! Thanks so much for the information, STEEM ON! ♨💪♨💪♨

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Thank you @karenmckersie! I kind of wish I had this when I first came to Steemit. LOL No guarantee on being on the Welcome page but it certainly is a super cool compliment! You are more than welcome to use the badge if you'd like :)

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Awesome thanks! I do too! 3 months plus ago, everything was harder, the newbies have it much easier then us lol ! Haha! Malenial Steemers! 😉😂😂and i really hope you get put on the welcome page! Good luck!

Bookmarked, if needed for new users. Thanks for wrapping it up!

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I appreciate that @lemouth :)
Honestly, I think I wrote this so all I had to do was give them a link. Laziness in action. LOL

You should add a reference price on the price of steem in this previous last weeks down to 30% in almost a month (.45 > .15 today)... And add that prediction into the 104 week "payouts" that will never catch up (actually the devaluate faster every day) with those "interests".
It's a downard spiral, and every dev knows this (that is why you are forced to take STEEM now and not SBD, every second devaluating counts).

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I have to admit that the maths, predictions, devaluations...those are still way out of my wheelhouse. I'm not entirely sure why so much STEEM is created but it doesn't really bother me because I came in with absolutely nothing. I know it sounds kind of "goody-two-shoes" but even when many of my posts didn't make a cent, I never feel like my time is wasted. It would be very disappointing if Steemit disappeared but I can honestly say I've made more here than on FB, Snapchat, Twitter, Hubpages, Bubbles, Tsu...

I know I'm still naive about a lot of things on Steemit, but I still consider it an investment - even if it's in harvesting wonderful people.

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You're the perfect citizen for Greece 2015.

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Good post, mere. I always have problems dealing with filthy lucre :)

Well done!

I've also posted this on my Facebook page to try to help people on the fence about joining Steemit.

You are a doll, thank you so much!

This was fabulous. I've been here a couple months, and even found some helpful hints here. Thanks!

This was very helpful. Great post

Another great post by you, of course.

I posted similar on your WordPress just now saying some things and that I will use your Steem Power Muscley Army- logo thingy you made lol.

This was one of the best #Steemit101 type posts I have seen, I wish I would have seen it earlier like you said here too. I think awhile back you told me to check out this post - but I cannot remember now.

Thanks again!!! For everything!!

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Thank you @barrydutton
The 100% SteemPower badge is free for anyone to use. No attributes needed. :)
I was working on a step by step guide to converting Steem & SBD into fiat (cash) but that was about the same time we stopped getting SBD so I put it on hold. Hey @timcliff - are you aware of any changes to the SBD distribution? I'm starting to see bits pop into my wallet from curation but I don't remember seeing any kind of announcement about it.

Oh and of course, UV and RS for you. (:

Great piece and thanks for sharing. Upvoted and shared on Twitter✔ for my followers to read more about the mechanics of STEEMIT. Stephen
https://twitter.com/StephenPKendal/status/801223317583708160

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StephenPKendal Stephen P Kendal tweeted @ 23 Nov 2016 - 00:38 UTC

The #Steemit Newbie's Comprehensive Guide To Understanding Your Wallet..!! @Steemit steemit.com/steemit-help/@…

Disclaimer: I am just a bot trying to be helpful.
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you are so easy to spot everywhere!

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Can't imagine how!

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A feather writes virtual growth the wall. I just came from your post about steemprentice and its new incentive. I meant my earlier comment a good way. How you brand your profile and your blog's name makes you easily spotable

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That is part of why I do it. :)

Great post! I am a newbie to cryptocurrencies and quite lost as to how it works. So your post might help me to start dealing with steem. Thanks much!

I understand ... I will add 1000 Steem to my account , convert it in SMP , and start to enjoy the posts . Easy... :)

Excellent information! A must read! Thank you for sharing.

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Thank you @michaelstobiersk - this literally took me ALL day to write! :)

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I just started here today and am amazed about how long it already takes me to just READ things to understand enough to at least feel halfway secure about introducing myself :-) your post helped a lot!

I honestly think it will take me a great while to understand these steem-sp-sbd thingy but i'm sure I'll get there somehow. 😅😅😅

bleedpoet, that was also my question TY

great post, i am a complete noob when it comes to steemit and your post helps a lot, thank you!

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There is definitely a steep learning curve but Steemit is filled with amazingly helpful people. We are a tight community and we want to see others succeed. Welcome aboard! I highly recommend checking out the Introduce Yourself posts and creating one of your own. Please feel free to message me when you've started posting! I'm looking forward to reading your content. :)

Thanks merej99, definite must read guide to help wrap the brain around all this new techie wizardry stuff. Great post, cheers!

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@tekewena - there is quite a learning curve here but it's nothing that you cannot overcome if you stick with it. We've got a great community here and I wish you the best of luck! Looking forward to seeing what you share. :) Write back to let me know when you've posted something. I highly recommend an Introduce Yourself post.

좋은정보 감사합니다.

Thanks for taking the time to make this, its perfect. I am going to read it a few more times to try and digest it all lol. Very helpful for someone like me who doesnt know the slightest about crypto-currency and all the nuance that goes into it.

Very informative but I'm still stuck on the savings, its not clicking very well with me :)

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What part of it, Karen?

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There are 2 savings accounts 1 for steem the other for sbd. I know if I wanted to cashout my sbd I could get money but what happens when you cashout the Steem one. Plus what galena if you click cashout wait the 3 days then change your mind?

Thank you for this post. As a noob on here I was kinda lost and wondering if I should quit already, but now I understand what this is all about!

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To quit??? Perish that thought!
Yes, there's a steep learning curve.
No, it's not always easy.
But if you read through some of my blog posts, I'm pretty open about my experiences in Steemit. It's taken me 11 months of SOLID WORK to get where I am and it's paid off in more than monetary value. If you have questions, ask. There are a ton of people who want to see Steemit succeed and it will only happen by nurturing our new members. Welcome aboard!

Thanks for this guide. It really helped me get a basic understanding of the wallet and the currency.

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I'm so glad it was helpful. One of these days I'm going to update those guides. There are more guides but they are way, waaaaay back in my history. But if you have questions, please shout out. We have a great community of helpers. Welcome to Steemit! :D

Thank you for sharing ,this a very helpful and great post.....

Nice post

Really useful post! Thank you :) One question: How did you make the signature?

Great post. I know it makes sense I am just a little slower I guess because I am still confused. But that's just me :) I just may need to read it a few times.

This is my first week here, and this was a good read. I actually learned something. Thanks for the other links, they were also informative.

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Welcome to Steemit @oakleyshark!
We just finished up a massive Community Engagement Challenge implementing a lot of what those links hint at. I call them The Three Cs

Content - COMMENTS - Curation

Do those things, don't worry about the crypto or your earnings, have FUN, get over the learning curve and build your Steemit Tribe. There are lot of people who want to help. Don't be afraid to ask question.

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Thanks for the explaination, definitely cleared up my confusion.

Wow this was super educational! I'm still very new to steemit and have had problems understanding the differences between SP, SBD and STEEM as well,

Given how new I am, I am surprised I am already a small minnow lol, this gamifying is really fun!

Can you buy yourself into being a whale?

Funny just a few minutes ago, after just a couple weeks writing posts, having fun, I'm thinking maybe I should find our about 'my wallet' the one thing I was clueless about, went to the steemit section for newbies ...there was this link AWESOME ...wallet for dummies ...lol. thanks learned so much.

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I must be a right Divee, i'm still non the wiser.

Thank you for this post. I'm a complete newbie so I can't get enough of these informative articles!

Thank you for posting this. I am just learning the basics here on Steemit and this really helped me with the cryptocurrency aspect. I am a steemitgreenhorn.

Upvoted and Followed!

Hi, nice post. How about creating a video material of this content, would it be useful?

This was very helpful. Thanks for posting!

I am a newbie -- first post. Thanks for the info.

This is great ! Thanks for the help. I've got to admit, I kind of panicked when I saw all those terms and especially those abbreviations ( SBD, SP) and the...marine...life...metaphors ? (Yeah, no, reading posts about whales and planktons and dolphins... I thought that Steem was about fishing or Moby Dick, I don't know, stop judging me ! )
Anyway thanks.