What is steemit and how does it work ?

Steemit, a new social media platform where everyone gets paid to post online, has been released in beta.

Background of Steemit

Steemit is a relatively new company, founded in early 2016 by Ned Scott and Daniel Larimer. Ned Scott earlier worked for Gellert Global Group, a family-owned private equity group which holds many North American food companies. Daniel Larimer is the founder of Bitshares, which has the 11th largest market capitalization amongst all cryptocurrencies.

Today, we take a look at how you can make money with Steemit. It’s probably the best platform to take advantage of crypto currency and blockchain technology developments.

How does Steemit work? (Making Money with Steemit)

To start with, signing up on Steemit is free.

Steemit pays you for taking part in its theme activities through Steem, Steem Power, and Steem Dollars. Steem has already become a popular digital currency. The best thing is that the payment can be converted to US Dollars in exchanges.

Basically, there are two opportunities for you to make money with Steemit.

First is by Blogging or Posting. Here, you have to share your original and unique posts. When other members up-vote your post, you receive a payout. The number of upvotes determines your payout. Depending on the number of upvotes you get, you can receive 75% of the total payout.

There are also opportunities for developers to build apps rapidly on the Steem blockchain.

By the end of this post, you will know enough about Steemit to get started earning cryptocurrency — currency, like Bitcoin, that you can convert into US dollars, and other fiat currency, and spend on groceries, rent, travel and more.

Three internal currencies: STEEM, Steem Power, and Steem Dollars

Steem.it uses three currencies to power its network: STEEM, Steem Power, and Steem Dollars,

STEEM is the basic currency unit of the Steem ecosystem – everything is valued in STEEM and it must first be acquired to enter or exit the steam network. It is traded on exchanges.

In order to be active on the platform, users must convert STEEM to Steem Power. This conversion ‘locks’ their STEEM – it’s not burned, just inaccessible while it’s being used as Steem Power. This is referred to as ‘powering up.’ The rate of conversion changes and can be found here as steem_per_mvest on the right.

Steam Dolls is another symbol in the ecosystem. One Stem dollar is recoverable at $ 1 from Steam at current market prices (0.3 Steam at the time of writing). One can convert Steam to the Steam inside the Steam platform and then sell Steam to the Fiat currency in exchange. The actual trade delay is one week: the start of the conversion means that the dollar will become Steam at the market price in just one week.