Easy Way To Understand Steemit Basics

All my posts and future posts here are trade related of course except for this one because alot of my friends and followers in facebook are new to Steemit so might as well put up a quick post so I can throw in this link as a handy reference.

And this is by no means a complete guide about steemit and is this post is meant only to give my fb friends a quick overview about the steemit platform.

Btw, if you want to learn more, I suggest you read this radically updated steem whitepaper and their FAQ for more info.

So What Is Steemit

Steemit is a social media app which is very similar to how facebook works. But instead of the company running the platform, steemit is powered by the blockchain technology.

So just like facebook, you can write a post in Steemit ( anything what's on your mind ), upload photos, videos and engage in a post via comments.

This is exactly what you've been doing in facebook almost everyday, yeah? Of couse, I'm talking to you my facebook friends :-)

So what's the difference?

Well, unlike facebook, Steemit is not owned by one single company and no single person controls it. This means that all revenues generated goes to the participants of the network and not just one single entity.

So how many years you have been in facebook? how many photos and videos have you posted in your wall? How many comments, likes and shares have you made so far in facebook?

Have you made some money by doing all those things you love doing in facebook? If your answer is none, then thats the big difference!

In Steemit, everytime you post contents and somebody like it, you will make money! Yup! your post will make money in the form of SP, SBD or Both SP and SBD.

Basic Terms in Steemit

• STEEM - This is the building block; the main currency of the steem blockchain which Steemit is based upon. When you buy STEEM, you are investing in the future of Steemit's underlying blockchain. STEEM can be used to 'power up' to become 'Steem Power (SP)'. STEEM can also be exchanged into 'Steem Dollar (SBD)' on various cryto-currency exchanges.

• Steem Dollar (SBD) - Steem Dollar is the internal currency of Steemit. Its pegged to the US Dollar as each SBD is entitled $1.00 worth of Steem when converted. It can be converted back to STEEM or exchanged in various cryto-currency exchanges as well.

• Steem Power (SP) - Steem Power can be viewed as internal currency as well BUT cannot be traded external exchanges. Think of SP as a staked interest in STEEM. SP provides a variety of benefits to Steemit users. SP holders gain an automatic stake in the 'Steem Reward Pool'. SP holders also gained increased influence in their voting power, allowing for the user to issue higher reward to authors (including yourself) and clain higher reward from curation. SP can be 'powered down' in a process that is spread over many weeks in which the SP holder slowly losses SP in exchange for STEEM on a 1:1 basis.

Quick Summary

• When you post something into your Steemit blog, others will 'up'vote and 'reward' will be shown at the bottom of your post. Rewards can be converted into SBD or SP or both depending on how you want to be rewarded.

• 1 SBD equals $1.00 and SP helps to increase your voting power. You can also earn by upvoting othersso the more you increase your SP, the more you earn. You can convert SBD to STEEM which you can sell or hold much like any crypto assets like bitcoin.

• At first when you're just starting out, your voting power is low. And when you 'up'vote someone's post, they can get a few reward. You will see it later when someone just posted a few seconds ago and you upvote, it will read from $0.00 to maybe a few cents which is due to your low voting power.

• If someone with a huge voting power 'up'votes the same post you upvoted, then the reward will start to go higher. So a 1 post will have a potential of getting more money depending on who upvotes and how high that person's voting power is.

And that's basically the gist of it.

The more you use Steemit, the more you will know what's in store for you and your future with Steemit.

So if you like this post, join Steemit today and follow me so we can all make money from the things we love doing anyway! ;-)