How to Buy and Store Steem
Are you a writer, an editor or a content creator who want to earn money without going through a publishing house? No worries, Steemit solves this. While this incentivizing social media platform continues to gain traction, many more writers continue to directly benefit from their hard work.
Writers anywhere in the world can sign up, curate, edit and upload beneficial content which if other readers in the network find useful can up-vote and they earn money. Steem and Steemit is a perfect platform that distributes value to the real content creators and not media companies who often benefit from the very same content without reciprocating.
We can define Steem as a token that content creators receive once they sign up and contribute content at Steemit. Steemit is primary and is a blockchain platform that basically allows users to monetize their content. Think of it as a blockchain social media platform where you get to earn money depending on the number of positive likes your posts receive.
The number of votes a content creator receives once he/she uploads value directly correlates to the number of Steem token that they receive. That’s not all, curators who the network depends on also get rewards when they up-vote content. The only difference is that you can exchange Steem for any other cryptocurrency or fiat as USD in the open market.
You may be wondering how this works but let me assure you, it’s pretty simple. Every day, the Steemit network creates Steem and distributes it to every user who can create or curate content on its network. While you can mine the coin, it’s economically useless because of inflation risk due to everyday’s Steem generation. From calculation, the rate of Steem depreciation stands at 9.5% annually.
Types of Steem
Within the Steemit network, there are three different cryptocurrencies: Steem, Steem Power and Steem Dollar. It doesn’t make sense to hold value in Steem because of dilution and that’s why you can three options once you receive your Steem.
First, you can exchange it in the open market in exchange of Bitcoin or any other cryptocurrency or fiat. Secondly, you can hold it in Steem Power. When you have Steem Power, you essentially have ownership of the network and set to profit considerably. However, you cannot sell Steem Power units until 2 years elapse. Thirdly, there is Steem Dollar and by design, the cryptocurrency is stable and you can sell it at any time.
With Steem Dollar there is no risk of dilution and holding it means a 10% interest. Furthermore, whenever you create and upload popular content, 50% of the pay shall be in Steem Dollar and 50% in Steem Power.
How to Buy Steem
As said before, it doesn’t make sense buying Steem because of dilution risk but if you really do, Binance is a better option. Prior to this, you must buy ETH or BTC from CoinBase or any other high liquid exchange. After all, there are 18 different ways of buying STEEM from different global exchanges.
Here is how you do it:
- Buy ETH or BTC from CoinBase or BitFinex
- Create an account with Binance
- Transfer Bitcoin or Ether from CoinBase to your Binance account
- Navigate to BTC/STEEM on the top right hand of the exchange platform
- Click on BTC/STEEM, specify the amount of BTC you want to sell and execute that trade at Market price
- Go to your account Dashboard and verify your STEEM amount.
How to Store Steem
Storing your Steem Power or Steem Dollar at exchanges is a risky affair that’s we recommend transferring them to a secure hot wallet like Steemit or Busy. At the moment, Steem has no cold wallet support.