Is Passive Steem Curation a Good Investment?
I visited @goblinknackers today as I needed to give him the bottle of scotch that I bought at the Taliskar Distillery two weeks ago.
I know he had bought some STEEM several weeks beforehand and I persuaded him to power up today. He’s now an instant minnow and part of the 1% of Steemit share holders. However, he's unsure if he will be an active Steemian at this point.
Source
He asked me if powering up is a good investment, but I could not give him an instant answer. However it got me thinking; is it?
A few of your will know that I have secondary account named @chops.support that performs curation only. It is partly delegated by @steevc and it votes up several Steemians that we think are doing good things for the platform once a day.
@chops.support currently votes up 28 accounts and the VP fluctuates between 80% - 95%. I feel this is a decent balance but may add a few more deserving accounts to it soon.
It was a good place to start looking for the facts. The account has posted several articles but all were over seven days. What I wanted was curation results only.
The account SP is currently 523.21. This value has increased as it has been powered up every week or so with the curation rewards. For the sake of this experiment let’s just say that its’ value is just this and the full SP was bought at the current price of $1.31 per STEEM.
523.21 SP * $1.31 = $524.52 (some of this is delegated).
*Curation Earnings over the last 7 days (1 week) = $0.68
(this will be different in the proceeding weeks, but can be used as an example)
52 weeks in a year will equal = $35.36 rewards in curation over a year. (52 * $0.68)
$35.36 is 6.74 % of $524.52. I would say 6.74% is a decent return over a single year.
The price paid for the STEEM is locked in at $1.31 but the curation rewards will vary and likely increase as long as the rewards are reinvested / powered up.
Add the fact that 523.21SP will be a greater number tomorrow than this without any curation due to the rewards being awarded for holding Steem power.
What do the banks give you? 0.1% in a regular account, 3-5% possibly in a higher interest locked account.
I’m really glad that @goblinknackers asked me this question today as I really do like the result that is has produced.
If he wants to use Steemit as a passive way to gain a > 6% return he will need to add many more accounts to his using SteemAuto. I have shown him how to do this so it's up to him to follow through.
If you are willing to take some risks and have some belief in the STEEM price, then I feel that a Passive Steem Curation account will give you a decent return.
If you found this article so invigorating that you are now a positively googly-eyed, drooling lunatic with dripping saliva or even if you liked it just a bit, then please upvote, comment, resteem, engage me or all of these things.
I sent the sweaty guy a little gift from dustsweeper. Thank you (and him) for all that you do.
Aww.. thanks you didn't need to do that, but I appreciate it!
Nice calculating :) nowadays banks wont pay s@#$ , so this is indeed a great way of creating nice interest. I think with the current steem price it is great to get aboard if the goal is to create passive income without being to.busy on steemit.
The yield is much better than I thought. Compared to author rewards, curation is a poor second but if it's completely passive then, that's a different story.
Interesting. There are a range of strategies, aren't there? Spreading the curation across accounts that achieve high value posts and up and coming accounts, for example. Delegation might be another option - see @revisesociology's post about gaining a return on his investment.
The accounts in chops curation account are not really high value posts besides @steemonkey's who keeps getting @curie'd, well done pal again!
I didn't really add any for this reason. The results surprised me as curation rewards take a huge back seat to author ones.
It's a pleasure to be of some small service my friend :)
Well done, that's good to hear!
Thank you...that's very kind :)
I think curation rewards are underestimated. Last month, my curation rewards were 25% of all steem power rewards.
Steemworld.org tells me in the next 7 days, Author rewards are expected to be 9.963 SP, 12.913 SBD, and Curation rewards, 3.158SP.
Mine are a little more than 75% in favour of Author, but on a passive account where you are doing zero work its pretty good going!
Absolutely! In fact, I'm thinking that passive earning through delegation might work better for me in the short-term, until I'm able to post more frequently.
A well said article. I actually learned a lot. Being a minnow we are kinda lost at some point. But reading through articles such as yours enligthens our confused brain. I guess we all have that same questions of "hows" or the "dos# and "donts". I feel that I still dont understand the CURATION thing. I kept wondering who gets what or where does that part go or how i can achieve it too. Its pretty hard to gallop all the information and download it fast. Your calculation really helps a lot. A much better way of understanding it.
Again, great write up. More of this please.
Curation is simply voting on other's article's (like this one). The passive @chops.support account votes at 27 minutes after the post. There are other articles on Steemit regarding timing and when is the best time for max curation rewards. I may adjust this to 30 minutes in the future to determine if it gives me a better yield.
I actually did not know that at first that upvotes counts only after 30 minutes of posting hahaha
It is in the FAQ but I do not care giving more rewards to the author so I just vote at anytime 😉
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Haha me too.. i dont mind sharing the little of what i have as long as i like their posts.
Great that you figured all this out and the fact you believe in Steem helps encourage others. Resteemed to start out positive this morning.
I'm just catching up after a weekend away, and I think this post makes a very important point. It illustrates why I think Steemit is a much better long-term investment than Medium.com, despite the argument made in this recent post. While Steemit does have flaws, it's much more than just a paid-blogging platform.
I'm aware of Medium, and have an account that has never been used. Does it pay to use it?
Apparently so! But they only introduced payment recently. You have to pay a monthly fee to become a member and submit blogs. The payments for upvotes come from that, so I'm told. But unless people are actually investing in the platform, I don't really see the point.
I am getting a good result from curation and also @runningproject and @isotonic which are initiatives I set up... I think yours @chops.support is also a good one...
I reccomend you to use steemauto instead of the the steemvoter which is expensive and nor so much configurable, believe me ;-)
I do use steemauto, it was you who told me about it some time ago! steemvoter is more reliable but they charge and use your VP to vote their promoted posts.
Food for thought for a little fish like me. 😊Interesting strategies. thanks for the insight.
It all depends on price if it goes up then it's fine to do nothing after power up just power down and sell if STEEM price reached $10 or more 😂
Posted using Partiko Android
I think it is important to make sure that you are only adding accounts that you have established a relationship with or that you know are putting out good content. You can end up shooting yourself in the foot otherwise. If you weren't using Steemit as your main source of income and you had some decent SP, you could do decent just off curation rewards like you said.