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RE: Steem Nearly Touched $8! - SBD Comeback?
Hi @otage. Can I just check if I've got this right?
When I look at the ask price today it is 0.79 which is similar to the above. When I first looked before Christmas it was 0.36 so am I right in thinking that would have been a better to try to buy steem and then power up?
As I'm very new here is there an argument for powering up no matter what the price to get more SP or is the amount I'd get not likely to make much difference?
I don't really understand how powering up benefits me. I think it makes my upvote more valuable but does it have any other implications?
Thanks for your help!
Yes you are correct .36 is much better than .79 because you could buy double the Steem for the same amount of SBD when it is at .36. Powering up is necessary to increase your voting power and I highly recommend it. Doing it regularly is probably the best way to go since you are just starting out. This will give you a good average over time and not be as risky as trying to time the market. The only thing to watch is when SBD drops below the price of Steem and the ratio goes above 1 the price will be too high. At that point it is not beneficial to receive the 50/50 payout and you should consider switching to 100 percent power up of Steem. But you must select it before you post - it is an option on the bottom right of your posting window and it cannot be changed once you post until your next post. Also be careful because there is a third option in the menu called decline payouts. This does as it says and keeps all the payouts in the rewards pool no matter how many votes you get and can’t be changed until your next post. It is used for various service messages from Steemit and people that want to show trust by declining payouts. I have hit it by mistake on my phone app. :) A few other things about powering up: Steem that is powered up will continue to grow to counter act the dilution of Steem that occurs overtime with the creation of new Steem for rewards etc. Also Steem power is safer from hacking etc. because it is locked up for a period of time. This gives you the time to try to recover your account if anything like that happens before the criminals could transfer out any Steem power. So to unlock your Steem power to move from Steemit or transfer on Steemit you will need to power down. The process takes 13 weeks. You can choose any amount that is available in your wallet. You will be receive 1/13 of the selected amount in negotiable Steem at the end of the week for 13 weeks.
Thanks again @otage for taking the time for further explanation. This stuff is challenging for those of us who came here for the social platform and have no experience of trading.
No problem. One big thing I forgot to mention. There is a quirk in the system that always pays out SBD as if it were equal to $1. So even though the price of SBD is currently at $9 they will pay you as if they were only worth $1 so it is giving us a 9 for 1 bonus. Keep 50/50 payouts unless SBD goes below $1. The ratio is just for getting a better price on Steem.
Well now you've lost me. 😕 Mind you it's getting a bit late so I'll re-read in the morning. 😁