My first guide is about a question a lot of new Steemians have asked me. Today I will explain what are all of these cryptocurrencies and what is the difference between them.
1. Steem
Steem is the main coin used in the Steemit platform. It is the basic building block used to build the Steemit blockchain. It can be converted to SBD and used to power up your Steem Power. It can also be used to exchange into other coins in external exchanges like Binance or Bittrex.
2. Steem Dollar (SBD)
Steem Dollars are supposed to be worth about $1.00 each when converted to Steem. Today, SBD worth is about $6.5 because of manipulation of the market, but in the future, it will be back to be worth about $1.00. It can also be exchanged to other coins in external exchanges like Binance or Bittrex.
Steem Power (SP)
This coin is the only one that can't be used on external exchanges. You can 'power up' your Steem Power using Steem. The more SP you have, the bigger influence you will have on the platform like bigger upvotes/downvotes. Bigger SP will also give you bigger curation rewards. You can also convert your SP back to Steem in a long process called 'Power Down'. The 'Power Down' will spread over 13 weeks which in the end of it, you will have all of your Steem in your hand. 'Power Up' takes a few seconds.