People are making thousands of dollars and if you’re reading this, I’m willing to bet that you want to be a part of this incredible new community too.
But it’s super complicated and can be confusing as all hell!
Well fear not my fellow aspiring Steemers. I’ll break it all down for you. And I won’t get too technical because I’m not an expert but I can give you the simplest version of everything that you need to know to get started!
What is Steemit?
Steemit is a relatively new company, founded in early 2016 by Ned Scott and Daniel Larimer. Ned Scott earlier worked for Gellert Global Group and Daniel Larimer is the founder of Bitshares.
It looks and functions a lot like Reddit, but with one HUGE difference; Steemit pays both the content creators when their work gets upvoted, as well as the people who curate the best content on the site by upvoting others work.
This is possible because Steemit is powered by blockchain technology and uses a new cryptocurrency called STEEM to reward users who upload articles, images, commentary, etc.
Other ways users can get paid is through sourcing and up-voting popular content. The earlier a person up-votes a post that becomes popular, the more is the reward. Users are paid half in 'Steem Power' (a vesting currency) and half in Steem Dollars, which can be exchanged for US Dollars.
How does steemit works
Simple! It comes from the blockchain mining, which is done with the help of users when they do something on the Steemit network either posting artifcles, curating etc. Just like bitcoin miners are rewarded for mining the bitcoins; Steemit users are rewarded for content curation and creation. Steemit has 3 currencies: Steem, Steem Power, and Steem Dollars.
Steemit also allows for currency mining as well, but it’s not the primary way to earn money. Every day, new Steemit currency units that are created by the network and distributed to the people who engage with the site. The more you engage, the more you get.
The steemit currencies
Before you can earn Steem currency, you need to know how Steem’s three cryptocurrencies work: STEEM, Steem Power and Steam Dollars.
STEEM
STEEM is the fundamental currency of the system. STEEM can be powered up into STEEM Power, traded for Steem Dollars, and transferred to other accounts. It’s unstable, subject to inflationary losses (its supply increases 100% per year) but also easily exchangeable for Bitcoin and other cryptocurrencies.
STEEM is an ownership token but is only votable when vested as the second currency — Steem Power — in a process called powering up.
STEEM POWER
Steem Power (SP) is a measurement of how much influence a user has in the Steem network.
It can be converted back to STEEM (a process called powering down) in 104 equal installments disbursed once per week.
This rate-limiting of SP withdrawals incentivizes you to develop a long-term perspective for your participation in the Steem network. It also serves as protection against hackers.
Steem Dollars
Steem Dollars (commonly abbreviated SBD) are liquid stable-value currency tokens designed to be pegged to $1 USD. They can be traded with STEEM and transferred to other accounts for commerce or exchange. Steem Dollars may also be converted into STEEM in a process that takes 3.5 days.