Buying Steem Power Delegation... Is It Worth It...!?
Hi friends!
You may have realised I've started voting with a lower percentage of my voting power. But don't worry. The reason for that is... I've recently doubled up on my Steem Power lease. 😋
A month ago, I was very sceptical of buying "Steem Power Delegation," instead of directly buying Steem. I had seen a few people calling BlockTrades a scam, even!!! 😲
In the end, I decided to take the risk and I spent 0.25 ETH to get 490.722 Steem Power for 90 days. Had I bought Steem instead, I would have get 55.23 Steem Power for the same 0.25 ETH.
Now, you might be asking: What's the advantage of Buying Delegation?
There are at least 3 advantages I see.
1) Return on Investment
After a quick math, I knew I needed to make at least 4.30 Steem per week, to reach the break even point with this investment.
However, after 45 days, I've realised I was, in fact, getting my return back... and then some. And I didn't even needed to upvote all of my own comments, like many people do. (Yes, I upvote my own posts. I wouldn't be giving them visibility, if I left them waiting with $0.00 of rewards. Right?)
I might upvote one or two of my own comments, too... but I only do it when I go to sleep and my Voting Power is above 92%. That is quite rare, though.
Halfway through my delegation period, I made an average of 4.04 SP + 3.89 SBD per week. Nearly two times above my break even point.
2) Boost Your Account Visibility
As soon as you start voting on other people's posts with a higher value, it's only natural that those authors will feel appreciated and will retribute your gesture. (I know I do.)
So, if you have more Voting Power, your account will grow faster, the people who you interact with will also grow faster, yours and their returns will increase... and in the end, everybody wins.
You'll also realise people will be more willing to upvote on your post when it appears on SteemIt with a voting power of $0.05 (or more...) than they are willing to upvote any new posts left with $0.00 of rewards.
3) Vote a Lot More Times per Day
As soon as you have a decent amount of Steem Power (above 500 SP), you can use the Voting Slider.
This effectively allows you to control your voting power a lot better... and let you give more rewards for the content you like the most.
You can also vote a lot more times per day, without depleting your Voting Power completely.
Conclusion
I believe that, as long as we post a few times per week and maintain a certain level of quality, it's perfectly possible to recover any Steem Power delegated through BlockTrades (https://blocktrades.us)
Final Note
Using BlockTrades is easy peasy. You don't even need to Register in their site. Just go there, insert your username from Steem, define how much you want to spend... and then click "Get a new Deposit Address".
A new ETH Address will be created and you can send your ETH to that Address from anywhere (Your own Ether Wallet or an Exchange.)
If you post regularly, this is an excellent investment, in my opinion.
My Personal Goal:
As long as I can get a return on my investment, I'll be using Delegation to maintain my voting Power above 500 SP, until I achieve 500 SP of my own.
With so much good content around, I don't know how you guys can get by without the Voting Slider. 😝
I hope you find this article useful. Please comment. Don't be afraid to leave your opinions and suggestions.
@cleverbot & @banjo: Are you guys awake?
@trincowski signing out.
Okay, this is the most useful article that I read since I start my "career" in steemit. I am not even aware about Steem power delegation before reading this. 😂
Thanks, I'm glad you've liked it.
Ok, so you need to get 55 Steem in 90 days to break even on the 490 delegation. That's 0.61 Steem a day. Right now a coin is worth $2.36, so $1.44 a day. You get 10 votes a day so you'd need 14 cents a vote.
The problem is, you're only going to get about half that with a 491 delegation. I have a 15 cent vote right now with 1010 SP. Blocktrades is a total scam in my opinion as well, as my last blog post illustrates with its ridiculous 5% fee.
Blocktrades is clearly in this game to make a profit. And let me tell you... they must be making bank and they give you no indication of how much they are making.
The only way to make money from a delegation is to buy it right before a huge bull run. If Steem were to go x10 your 7 cent vote would now be 70 cents. However, if you had just bought the 55 Steem outright that would also go x10 value obviously. In this scenario you would generate $630 ($7 x 90) of inflation in 90 days, but at the same time that 55 Steem would be worth $1298. That's not even counting the inflation generated with the 55 Steem.
I think you've done the math wrong somewhere. I don't think it's ever profitable to buy delegation. I would love to be proved wrong though.
Ah, I think we are talking of different things. I didn't do the math of what 10 self-votes a day would bring me. If you look at my blog, you'll see that usually I post once or twice a day. 3 times, in seldom occasions.
So, I use only 2 or 3 votes a day for myself. The rest, I'm distributing it by everyone I follow.
So far, it's working for me. I did the math after 45 days of delegation... and I had already confirmed that I was getting over 4.3 Steem a day. That's why I doubled up on the delegation.
Indeed, so you're relying on more of a network effect to carry your total gains over time. This is a good strategy, but I would still make the argument that simply buying Steem straight up would get you better results... although that would be much harder to prove. After your delegation runs out, you may want to try a separate test.
I have been looking for weeks about an article on this matter and to be honest, i could have a more explained response to my question. Your post was more than helpful and i quickly upvoted it as soon as i finished reading it. Im sorry my vote power doesn't make a penny yet, but would have upvoted you with 100% even if it did. My only question, and i hope i can get an answer for is that how did you get .25 ETH? Did you buy them? I am not willing to spend real money on this platform at least for the first 3 months. I get to learn more from working hard than from buying and having an easy path. If i spend lets say 2 sbd on delegation, receiving steem power, will i be able to spend more within 90 days, or do i need to wait. Thank you in advance. Great post indeed.
Thanks.
I bought my ETH at CoinBase.
Yes, you can do it multiple times. You don't need to wait for a delegation to end to buy another one. (Right now, I have 2 delegations, worth around 0.25 ETH each. The first ends in 45 days, the second ends 90 days from now.)
Thank you so much. Very complete responses. Good luck
Have you heard of Resident Evil 4?
Are you kidding? That's one of my favorite PS2 game. I played that game every single day for a month.
Can you name all the members?
I'm glad someone did the calculations for this! Do you have any tips about how to distribute votes, vote weights etc?
Thanks
I thinks that's personal... Each one of us will do it a bit differently.
I don't have fixed values. I vary my voting, depending on how much I like the post, how much effort I feel it has been put into it... and lastly, if my Voting Power is high at the moment or not.
The higher my Voting Power is... the more likely it is that I give out a larger percentage. My goal is to stay above 80% of Voting Power, at all times.
With around 650 SP that was quite difficult, I was finding myself constantly around 70% or so... but with over 1000 SP it became a lot easier to remain around that level.
Also, I'm hoping SBD will return to a 1:1 parity with Steem, so I'll be able to exchange my SBD for Steem Power. Right now, I'm delaying that conversion because I think the difference is too huge.
Thanks - I'm trying to stabilise my voting power in the mid 70s - even cut back on handing out flags :p
Because I kind of accidentally ended up with more loaned SP than I anticipated I try to spread the votes as broadly as possible. But I'll upvote almost anything if a little effort has gone in to it :)
Cheers
How exactly does one accidentally lease Steem Power?
The lease itself wasn't accidental - I just wasn't paying attention to the rate / ratio at the time. I just entered an amount in BTC.
You were very helpful, my friend, but I keep knowing nothing about those complex activities, lol! I tried to delegate once and it didn't work... I can't even remember who I was delegating to, just imagine...
But slowly I'll get there... I just need more time! Wonderful post, my friend!
Ah ah! I hope one day I'll have enough Steem of my own to start delegating to others. Right now, I'm on the other side of the barricade! :-D
You will. I tried to but I don't know how it didn't work... it's a simple transfer by a memo, right?
I have never tried delegating to others. Sorry, but I can't help. But I know @soma909 knows how to do it. Maybe you can ask him?
Yep - I've done it a few times. You can do it with steemit or busy - in the wallet you can select delegate and enter the amount and the user to transfer to. You can check it worked by going to steemworld.org/@your-username - then select Feed and Delegations (Out). You can also delegate using steemworld. To undelegate you do the same thing but enter 0 as the amount. It takes 7 days for the delegation to come back to you.
Just realised the delegation feature is provided by the steem-plus extension.
The easiest way to do it is with the steembottracker tool - https://steembottracker.com/delegation.html
Thanks so much! I will explore it! And, btw, to whom you delegate? What are the best choices, on your opinion? Thanks for your support!
I've delegated to new users and also to people who are running apps/tools on the network. I'd say delegating to new users is the most worthwhile as even 20 extra SP can make a difference to upload limits, bandwidth etc.
Oh great! I might do that in the future, this is my 5th day on steemit and I'm still trying to figure it out. I have a question, Where do my voting power should hover around? Thanks in advance and for this post it really helped me understand steemit more.
When you have more than 500 SP, it appears when you click the Vote button in any post or comment.
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by Trincowski from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.