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RE: The Beginner's Guide to Steemit, Part 4: Your Account's Wallet
Thanks for this! I have a few questions. My apologies if you answered any of these; I tried to read the post carefully but there's a lot here to digest and I may have missed something:
- I've noticed that recently, I've received a couple of small rewards in STEEM instead of SBD or SP. Do you know why that is happening?
- When SBD's market value is over $1, I know it's best to take rewards 50/50 and use the SBD to power up rather than do a 100% power up. Is there any disadvantage to doing this? Would you lose out if you decide to power down at some point (assuming the price of SBD stayed roughly the same)?
- Is there any disadvantage to converting SBD to SP or withdrawing to an external wallet via Blocktrades vs. doing it on the market? For instance, is Blocktrades' fee higher?
Hi Mallory!
Thanks for your questions. These are all great inquiries, so I might consider addressing some of them in future lessons.
Presently, some rewards are being paid out in STEEM because of the print rate of SBD. It's a bit complicated but it comes down to the fact that SBDs are not intended to reach over 5% of STEEM's market cap. If the number reaches 2%, reward payouts start to come in STEEM so that less SBDs will be printed and drive the percentage down. Here's a post that explains it in more detail.
To answer your second question, when SBDs are at or lower than $1 in value, it's really up to you how you take rewards. If you want some liquid rewards to use for sending or exchanging, then selecting the 50/50 may still be a good idea because you still have the option to power up if you choose. If you select 100% power up, those rewards are locked behind the 13 week payout schedule if you choose to power down. This is fine if you're trying to grow your account, so it depends on what strategy you want to employ!
For question number 3, there's no good way to tell what the best method is. The internal exchange is great because it's generally fast and carries no fees. Blocktrades does charge fees and then your exchange would probably also charge a fee for the actual exchange, so often it's quicker, easier, and cheaper to just use the internal exchange. Feel free to do the math, though if you aren't sure!
Let me know if I can help with anything else! I hope these answers were satisfactory!
Hi! Thanks, that was super helpful! I wish Blocktrades was more transparent about its fees between SBD/STEEM/SP. I see from other posts that the fees for BTC, ETH, and DASH range from about 3.5-5.5%. I suppose I'll have to do some more research! I'm willing to pay for the convenience as long it's not egregious.
Blocktrades' fees go down as you trade more. Put in the figure for 1 SBD, then 10, then 100, and you'll see. For BTC, most of the fee actually comes from the BTC end, and would apply in most exchanges.
I do find them reasonable, if you trade at least 10 or so SBD, though with SBD's current prices, it might require a bit more.
Edit: Also, it depends on the coin. I checked just now for instance, 67 SBD can lead to $122 worth of BTC, but $125 worth of Ethereum, while the nominal value is $129.31.
Thanks for the clarification, @geekorner! I knew it scaled based on the amount, but it's good to have some concrete examples.