If you don't already know, there are 3 different types of currencies used in Steemit:
-
STEEM
-
Steem Dollars
-
Steem Power
STEEM
First up we have STEEM, a cryptocurrency created for use inside and outside of Steemit. For the average user of Steemit, STEEM should be used for:
- Cashing out your Steem Power or Steem Dollars
- Converting it to Steem Power or Steam Dollars
Steem is a volatile currency which means it's value constantly fluctuates. STEEM shouldn not be held in your account for too long unless you are investing in it.
Steem Dollars (SBD)
Steem Dollars is likely the most used currency by the average Steemit user. It often gets sent from user to user on Steemit and also is how Authors get paid. SBD can only be used in the Steemit eco-system and has no value outside of it. However you can redeem money from it by converting it to STEEM and then selling the STEEM.
You can earn up to 10% interest on your SBD yearly.
The value of an SBD is stable and is pinned to the US Dollar, so the value of 1 SBD will always be worth around the same as 1 USD.
Steem Power (SP)
Steem Power was designed to be an extremely low-volatility currency which also can only be used inside the Steemit eco-system. SP can be powered down (converted) into STEEM, 1 SP is equal to 1 STEEM.
Although this powering down process takes some time. Once you decide to sell it the system will start the process 2 years after the moment you decide to transfer it. Then it'll transfer 1/13 of your SP each week for 13 weeks. All this ensures that SP has low volatility.
You can earn up to 90% interest yearly from the SP in your account!!
Check your balance of all 3 currencies by clicking "Wallet".
On this page you can convert the 3 currencies into one another.
The more Steem Power you have in your account the higher your voting power will be.
Learn about your voting power here:
https://steemit.com/steemit/@bronsonhill/how-to-earn-money-from-upvoting
Please ask any questions big or small in the comments!
Hello! I would really appreciate it if you took your time to kindly upVote this post, check out my other posts like this and even possibly follow me! I would tremendously appreciate it as it encourages me to keep on creating more educational steemit articles just for you.
Thank you!! - Bronson