How do I cash out?!
Fret not, all of your blood, sweat, memes and tears have not gone to waste. Yes it can be rather tricky for one to understand the Steem Ecosystem. Moreso, it's a rather steep learning curve for newcomers who are more so new to Cryptocurrencies.
First thing you NEED to know is the differentiation between STEEM, STEEM DOLLAR, and STEEM POWER. This Video covers it pretty well.
A little Refresher
- Steem is the native liquid token that can be converted to and from, STEEM DOLLAR and STEEM POWER.
- Steem Dollar (SBD) is considered as the stablecoin of the platform and was designed to be pegged to $1 (Though this does fluctuate)It is one of the means of receiving rewards through Steemit is via SBD which can be easily converted into Steem.
- Steem Power (SP) is the amount of voting power one has. When one converts Steem to SP, it is a method of locking up funds so that the account has increased influence in its curation weight. Rewards are ALSO received in SP too.
Everything that you do from Curation to Posting, is paid out in either STEEM DOLLAR or STEEM POWER.
Are you familiar with this?
This allows you to either convert your rewards completely to Steem Power 100%(Power Up), or split it evenly 50/50 between SBD to SP.
Now before I delve into the juicy parts of this article I still need to clarify some things so that the general audience understands this concept.
Image Source: Powerdown.com.au
Powering down is the act of converting ones' Steem Power to Steem.
- It is done over a 13 week process
- What this means is that if you intend on powering down eg. 100 SP
- 1/13 * 100SP = 7.69 Steem will be converted each week for 13 weeks.
- This is a slow process as the act of Powering up is the intention to Vest your Steem to the Steem Blockchain in exchange for voting power and influence rights and a yearly interest. Think of it like converting your liquidity to shares on the platform.
- It gives the holder the power to affect major decisions on the Steem Blockchain, such as the increased influence on voting for witnesses that create blocks and the distribution of the reward fund.
- In this case, we're doing the opposite, Powering Down.
- Withdrawal via Powering down acts as a safety mechanism for the network through its fixed payout system.
Rewards in a Nutshell
We should all be on the same page now, and we're reaching the sweet spot. I know the limitations of the human attention span as time progresses and technology is more abundant, but this stuff is crucial!
1. Your Rewards are Shown in Steem Dollar (SBD)
Thats right, that little tag on your post payout shown in $ is not in USD; but rather, in SBD. Remember that the value of SBD can fluctuate from $1, (It's actually worth more!)
- If the author is entitled to $100SBD from a post based on a 50/50 Payout
- And the Current Market Price of 1 SBD is $3.20
- Your post is worth a whopping $320 USD.
- BUT with a 50/50 Payout, you will be paid 50% of this in SBD, and 50% in Steem Power
- Steem Power is essentially the same value as Steem.
- With this is mind, You will theoretically receive 50SBD, and 48.3 in SP (if 1 SBD = 0.966 STEEM), ∴ 50*0.966 = 48.3 SP.
2. Your Rewards will always be paid out in Steem Dollar and Steem Power
Though this may depend on whether you decide to fully 'Power Up', which converts your reward payouts to Steem Power alone, making them insolvent but utilized for the purpose of voting power .
3. To Cash Out, You will need to withdraw either Steem or Steem Dollar. We're going to go with taking out Steem.
Honestly this method works the same way if you wish to withdraw via SBD.
- If you have any Steem Power that you wish to withdraw, you're going to have to head over to your wallet and click on the arrow to "Power Down". Eventually you will be paid out in Steem.
- If you have Steem Dollar you wish to withdraw too (and for the sakes of this example we're going to withdraw to Steem), click on the arrow of Steem Dollar in your Wallet and select 'Market'. From there you will access Steems' Internal Market for trading between the SBD and Steem Pair and you can SELL your SBD for STEEM.
So now you have a lump sum of STEEM ready to be withdrawn. What's next?
Now the methods of withdrawal can vary, but her's our method.
Send your Steem to a Cryptocurrency Exchange
A Cryptocurrency exchange that supports a variety of Altcoins is best, and for our scenario we will be using Binance as it is easy for anyone to set up an account for free and begin trading. You could always opt for others like Bittrex or Coinbase.
- After setting your account up, all you need to do is to go to the Funds > Balances Page, click on Deposit and search for STEEM. When you're there, copy the address and memo. It should look like this:
- Head over to your Steemit Wallet and click on the Arrow next to Steem and select 'Transfer'.
- Paste the CORRECT Address Name and Memo (I URGE you to check as many times as possible as wrong addresses or memos can result in irrecoverable coins)
- Hit SUBMIT
Convert your Steem to a token such as Ethereum / Bitcoin / Bitcoin Cash
Now if you're new to exchanges, it may take some time to familiarize yourself with the layout as it can be intimidating for newcomers.
In this Example, we will be converting our STEEM to ETHEREUM
- Simply head over to the Markets Tab and Select STEEM/ETH
We're going to place a SELL order for the MAXIMUM quantity of STEEM, and at a price which is BELOW the Market Price so that our order will be filled Instantaneously. Just click what's below (though you can speculate in the market and place a Sell order at a higher price if you anticipate a price appreciation).
But here's a nice image to depict the above in a nutshell. If that nutshell is filled with numbers that is.
aaand... Voila! You now have ETHEREUM and you're 1 step away from Cashing Out.
Time to find Buyers of Ethereum
Withdraw your Ethereum from Binance to Remitano's Wallet
On Binance just head to your Fund's Page and select Withdraw on ETH (Similar to Deposits as above, just select "Withdraw")
On Remitano, Register, Verify Yourself, and head to the Ethereum Wallet Address and copy the Address.
Do note the Deposit Fee.
Paste it on the Binance Withdrawal Page and ensure it is all exact.
Now You Have Ethereum in your Remitano Wallet, It's Time to Survey the offers Advertised.
As you can see, there are a variety of vendors offering to buy Ethereum (and sell too) and numerous prices at different quantities. Pick the best offer they have. (Worst comes to worst you can create your own advertisement!)
We're going to select this User:
- Prepare your bank details.
- Ensure you have sufficient ETH in your Wallet and..
- Fill in the form!
Begin the Transaction and the Vendor will get notified. If not there are two optional methods to summon him directly.
And There You Have It. You've just converted your Earnings on Steemit to Cold. Hard. CASH.
That was a bit of a task but just think about the versatility in terms of Crypto to Crypto Conversions (despite the hassle).
Moreover, there are a multitude of different platforms to exchange from, you can consider investing your Steem for projects and tokens you have faith in, or simply convert it to cash!
Just make sure to do your due diligence on the potential fees you could incur and the risks of that platform.
Always. Ask. Questions. There are so many scams and fishy business in the world of Cryptocurrencies. So always be vigilant and you can always reach out to us for any assistance. (We've got the comments section below don't we!).
Do check out our site @ CryptoHype.Tech for Crypto Reviews and Tutorials to find out which exchanges we support!
Other Platforms to Withdraw your Cryptocurrencies from
- ETC ETC. This will vary on your countries existing exchanges. Ultimately we advise to use P2P Services such as Remitano to avoid time delays, potential fees incurred on certain exchanges, and heck, simplicity's sake.
Your attention is highly valued. Spread the love, knowledge, and fun!
Stay Cool Steemians.