One of the biggest questions people have on Steemit is how to use the wallet and what is the difference between SBD and STEEM and STEEM Power. There is more to just knowing what everything is, but also knowing how to use it to make grow your Steemit account and your crypto holdings in general. I will attempt to explain it all... let's get started.
(giphy.com)
First of all, some basics.
When you earn money from posting or curating you are paid either fully in STEEM Power (SP) or half SP and half STEEM Backed Dollars. The amount of SP you have determines your power on the Steemit platform. The more SP you have the more your vote will be worth and you will get higher curation rewards.
SBD is a tradable token that you can use to convert to SP or any other crypto coin or to cash. SBD was formed to be generally close to the value of the US Dollar. It is possible in the future to see a SBD valued around $1.00 and the value of STEEM be much higher.
Some Strategies
If you believe in Steemit and you plan on being a participant on the platform then increasing your STEEM Power is something that you will want to do. Converting your SBD to SP is a great way to grow your account. What is the easiest way to convert SBD to SP? I use Blocktrades.
I send SBD to Blocktrades and then it sends back the equal amount of SP into my account. It is the fastest way to convert to SP that I have found. You can convert it on Steemit using the marketplace and the convert option, but I like using blocktrades.
You can also use Blocktrades to send SBD and convert it to another coin that you can then deposit directly into another wallet.
If you want to cash out, you could always send your SBD to an exchange like Bittrex and sell your tokens and convert to cash.
When to sell and power up...
The best time to convert your SBD to STEEM Power and power up is when the spread between the two coins is the lowest. Sometimes it is worth holding onto SBD until STEEM goes down in value a little and trade when STEEM is low. For example: If the price of SBD is $.95 and STEEM is $1.30 you will convert more than if you traded when SBD was $1.00 and STEEM $1.50.
If you want to trade for another coin instead of powering up you can do that too on Blocktrades. Why? Just the other day I had about $20 SBD and I was going to power up, but the price of Ethereum was so low, around $180. I decided to convert that $20 SBD to Ethereum. Ethereum has since gone up 30% since I traded and I could now trade back to STEEM Power and get more bang for my buck.
Sometimes pulling money out of Steemit can help you increase your other crypto holdings. When you get enough profit, then you can buy back into Steemit. Just a thought.
I hope this helps. If you have any other questions let me know in the comments below and I will do my best to answer them. If it was helpful let me know in the comments too. Thank you for reading.
To my followers, you are the bull to my market.