Now you've been paid in Steem Dollars - what should you do?
So it's Steemdependence day. Your Steem account is looking rosy, you have a pile of Steem power & lots of Steem Dollars. Now you feel rich - what can you do?
1. Cash out (not recommended)
I wouldn't recommend this because the markets are very thin at the moment, and you won't get very good rates. You can probably cash out a few hundred dollars if you need it.
You need to convert your Steem Dollars to Steem, Steem to Bitcoin, then Bitcoin to cash
The quickest way is to go through Steemit's internal market. Then place an order to buy steem with your Steem Dollars. You can either take a current price, or place an order.
For the next part you will need a bitcoin wallet if you have one. (Although you can skip this step, read on)
The next step is to exchange Steem into Bitcoin.
There are a few places you can do this, but the quickest is probably through Blocktrades Send the steem to the address is says, and enter your Bitcoin wallet's receive address.
Then you can exchange your bitcoin into cash, or bank deposit (or other means) with something like LocalBitcoins.com.
LocalBitcoins has a wallet function which means you can send it Bitcoins from your Blocktrades exchange.
It's a bit hassley and difficult as the market is so illiquid now. But it is possible.
2. Convert your Steem Dollars into Steem now -> Then power up
Alternatively you can use your Steem to power up. This is probably the better option, as you're reinvesting in the site.
The question is whether you convert your steem dollars into steem now on the market, or wait for it to be converted through Steemit's conversion mechanism which takes a week.
I believe that at the end of the week, your steam dollars will be converted at the average rate on the exchange.
Personally, I think the value of Steem is going to keep rising, so I decided to convert my Steem Dollars into Steem while the rate is cheap. The USD value of Steem is up 67% today.
I'm powering up.
3. Hold your Steem Dollars as they are
Alternatively you can keep your Steem Dollars as they are. They should keep a fairly static value to the USD and also pay 10% interest. You can hold onto them until the market is more liquid. Then you could cashout or still power-up.
Hope that helps. Let me know in the comments if I've made any mistakes
A better explanation than some others.
happy to hear this, let us build steemit.com to have a good future, cheers
totally agreed.. steemit is the future
Very useful post, thanks.
But now blocktraders suggest only dogecoins(
I saw the same thing this morning.
Poloniex.com is working with Steem and Steem Dollars.
I think it is more easy to get doge coins and can exchange it to bitcoin any where at any time , instantly.. you can do it with shapeshift.. it is instant.. i use it mostly..
Thank you for posting! Did you find a solution for this? On the site for me now, it says that all Steem options are under maintenance. Has anyone else encountered this?
Good starter article. I wonder how long before Steem is on the major exchanges like Poloniex.
I must say, I'm still in need for more info to understand all this...do you maybe can write a new article on how it works? that being said, i'm gonna follow your advice and get all my steem $ ---> steem and power up. Thanks!
I also liked your explanation, it was very logical (Y)
thank god someone was able to explain this to me
If I am understanding correctly the Steem Dollars are not actually an investment on the site? So I would be better off powering them up to Steem?
Do Steem Dollars serve any other function other than collecting the 10% interest?
At some point it's considered that we might use them as currency between us. Also, given the amount of people wanting to cash out of Steem Dollars today - you might be able to buy them at a significant discount. Then once the markets get deeper you could realize that gain.
I guess their purpose is to solidify the USD value of rewards. If the Steem price is illiquid and flip-flopping everywhere, the Steem Dollar is a way of keeping that value fairly solid.
That's the best answer I know. If @dan or @ned want to give a better answer, they're welcome
You can power them up that is a good use for them, but also you get paid interest just for holding them. Plus as @alexc points out you can use as currency between other Steemers. The advantage of this is that you can buy Steem at a better rate than an outside exchange. In time you'll have some serious leverage both on and off the site.
Oh and Blocktrades say that they'll have a way to convert SD to BTC in a few days, once a market is established, that will prove very useful.
CG
I like keeping some Steem around. Someone might really need it on the internal market. I could use it to help them out.
really good for a beginner like me ahahah.
I can't figure out how to buy steem. Can anyone help?
Let me know if you still need help with that. :)
I dont understand ... I see on Bittrex that I can buy SBD. If i buy SBD on Bittrex, will i still get 10% interest?
Or do I need to keep my SBD on Steemit or something?
That's a very interesting question. Been googling for this the last 30 minutes, but can't find the answer.
You need to keep your Steem dollars on Steemit to earn interest.
Bittrex will not pay interest on Steem or Steem Dollars or any coin.
Kucoin will pay gas on NEO but it's the only exchange I know of that does that.