Learn to analyze STEEM Market's like a Pro ; Find top Steem Exchanges, Estimate how much Steem Power is converted to liquid Steem and when is the right time to buy some cheap STEEM!
I'm sure that many of us are eager to buy STEEM and are willing to do so at current market prices. However for those Traders out there or Steemians interested in purchasing STEEM as an investment or quick profit would preferably like low STEEM Prices
In traditional markets, traders usually rely on sophisticated indicators based on complex Mathematical Equations to speculate financial markets. Many Traders read the market by using Indicators as some sort of prediction tool to ensure that they are getting a reasonable price in hopes of making profit in the foreseeable future
With STEEM, we have cryptocurrency which not only holds financial value but also stores valuable content whereas Steemit.com is build on top of Steem's blockchain, a user-friendly interface with a unique built-in internal market.
STEEM is known for being the liquid financial asset, Think about it! You can easily exchange this virtual tokens on other exchanges like Poloniex or Bittrex
Visit this coinmarketcap.com to find out which Cryptocurrency Exchange accepts STEEM. From the above screen shot you'll notice that an estimate of 84% of daily Steem trades occur on Poloniex (Excluding Trades from Steemit's Internal Market). Since STEEM is a new Cryptocurrency, there will be less Exchanges that will accept STEEM at the moment, however this will change in the future!
Bitcoin is the dominating Cryptocurrency since it was out 2008, so while STEEM still needs mass adoption you'll mostly likely convert your hard-earned STEEM to BTC in order to cash out! There are many services that allow you to obtain Fiat Currency in exchange of Bitcoin! At of end the day you have got to eat food and in today's world you can do so only if you have money!
Many shops don't accept bitcoin but there are plenty of services out there that will give you paper fiat money in exchange for Bitcoin, but give the market some time to accept STEEM and you'll soon should be able to convert Fiat Currency for STEEM. So it's good to know where most of the STEEM is going and it seems like most of it is going to Poloniex! You can imagation a lot of People selling their STEEM on Poloniex so they can get Bitcoin to convert it to Paper Money to spend
It's a good idea to monitor exchanges to determine whether the price of STEEM in the future will decrease or increase, this gives us a better idea of when to enter the market to buy Steem. Let's just say that your goal is to buy a large amount of STEEM, you would definitely want the cheapest rate possible!
Also keep in mind that, there should always be buyer and sellers available on the Market, especially for a valuable Cryptocurrencies like Bitcoin or STEEM so it's also a good idea to keep track of the Market Volume! Volume is a measure of how much of a given financial asset has been traded in a given period of time. It is a very powerful tool, but it's often overlooked because it is such a simple indicator. Volume information can be found just about anywhere, but few traders or investors know how to use it to increase their profits and minimize risk.
At this moment, now that STEEM is only accepted by handful of exchanges it is one the best indicator to determine the price movement of STEEM. Because STEEMIT is the platform which holds most of STEEM & Steem Dollar and with a built-in internal market, Steemians can trade among each other. Since the most popular way to cash-out STEEM is to directly convert it Bitcoin and then exchange BTC to Fiat Currency
Note that STEEM is distributed through curating and authors, and with financial asset like Steem Power, a lot of wealth is locked up in smart contracts. Since most of us don't have capital to make a decent living from Curation, most of us will create content for Steemit to earn ourselves in the community and the payout setting allows you to fully power up any earnings made from Posts or decline any payout however there is also minimum 50% STEEM Power payout setting
This means a lot of redistributed wealth is the result of new content on Steemit, this is good for the ecosystem as most of the STEEM is locked up in smart contracts and does not leave the internal market!
Personal Tip is to monitor Poloniex's STEEM Volumes and also keep a close watch on the number of STEEM Power Downs
Since STEEM Power is essentially liquid STEEM which can be sold and transfer at any given time, it would make sense to monitor the total number of Power Downs! If all Steemians decided to power down at once, you can expect there be a lot of liquid STEEM and to complete a full ''Power Down'' there will be weekly installments of STEEM payouts, so you can expect a lot of Liquid STEEM to be available on the Market
( Note that 21st December 24hr Volume: 124.89060315 BTC / 688129.76315084 STEEM )
This means that over 688129 STEEM worth about 124.89 BTC was traded on Poloniex Exchange on the 21st Decemeber. The price several days ago was at 16-18 Cents and now its 12-14 Cents USD, this is actually temporarily because of Hardfork 16. It seems that a lot of big accounts are powering down due to the lower interests reward's for holding STEEM Power and partly due to change time period to complete a full Power Down. You need to cancel your previous power down of 2 years, in order to power down within 3 weeks based on Hardfork 16 specifications
STEEM Power earns you Less Interests and a reduction in time to complete a fullPower Down of STEEM Power to Liquid STEEM
It was intended that of the new STEEM Created, Steem Power Holders get 90%, the other 10% get paid out in Contribution Rewards. The main reason is to reward contributors more whereas to reduce STEEM Power Holder payout
-104 Weekly Installments
Hardfork 0.16.0
-13 Weekly Installments
91/104 X 100 = 87.5%
That's a 87.5% Reduction in Time to conduct a full ''Power Down'', now you can withdraw your Vested STEEM within a 3 month period which a lot less time-consuming than having to wait 2 full years
So Hardfork 16 will make a lot of Steemians want to Power Down and to also cash out! So perhaps we will have cheaper STEEM Prices for following next weeks because of the influx of Steemit User powering down their STEEM Power.
Now the big question is, how do i know how much STEEM Power is powered down at this moment?
The site you need to check out is Steemdb.com Power Down
Here you determine the total number of STEEM being powered down, not only does it indicate how much STEEM Power has been converted to liquid STEEM but also indicates pending Power Downs. This mean people are just converting their Steem Power (Vested Steem) back to liquid STEEM through weekly payments, which should lower prices once individual decide to sell their STEEM on Crypto-Exchanges in order to cash out
Some may keep their liquid STEEM or convert it to STEEM Dollar however it's good knowing how much Liquid STEEM is available on the internal Market. Many of us accumulate a lot of STEEM Power over time, not only does it grant us ownership over Steemit but it also pay interests. Not everyone will decide to power down but SteemDB will let you the exact number of liquid Steem about to enter the internal and perhaps external financial market's
Alternative Method
There is an alternative method that allows you to check out how much ''Whales Accounts'' are powering down. If you're not familiar with term Whale, just know that it's a popular classification of a Steemit User, to be to known as a Whale on Steemit you'll need to invest a lot of money into the platform. Since we want to get the cheapest STEEM on the market, it's advisable to keep up with Whales since they tend to hold the most STEEM
Since most of the early Steemit Whales enjoyed high interest on top of STEEM Power and after a reduction in time to complete a full Power Down decreased from 2 years to 3 months it makes sense for many to power down! These individuals are important to Steemit as they distribute most of the platforms wealth and also invested a lot of money into it. Don't forget to mention that when they Power Down they lose a fair share of Steemit
Anyways, you should really try to monitor the Market a bit more carefully and also keep up with STEEM's Blockchain once in while. Stay informed and buy STEEM while it's cheap!
Here are some other Guides you might find Interesting
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Doesn't this go well with the SteemVerify Logo? Anyways, if you spot an error in any of my Guides please feel free to correct me and also if there is anything you would like to see a Guide on, let me know! Dedicated young Steemian interested in getting Vested. Will write another Guides & Tutorials about Steemit, Follow me for more!
BE AWARE OF THIS ...
Before you stop that 2 year power down, you need to be sure that your account has enough to qualify for the 12 week power down.
Several of our smaller accounts that were powering down on the 2 year cycle were stopped thinking we would resume on the 12 week cycle and move those accounts funds to our main tuck-fheman account.
What happened instead was that while the accounts qualified to power down under the 2 year rules and requirements, they did not fit the requirements to power down under the 12 week rules and requirements, thereby leaving the accounts unable to be powered down and no way to go back to the 2 year version.
Great and very informative as always!
Upvoted and resteemed!
Steem on,
Mike
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good helpful blog
Useful information, and great use of SteemDown to use in trading decisions!
Great post, someone give this man some mass bot upvote love.