The currencies of Steemit - a flowchart
With all the new members signing up, I figured it's a good time to talk a little bit about our confusing wallet. What better way to do that than with a flowchart?
I love a good flowchart. It's such an easy and simple way to explain things. I used to make them a lot to document business processes or to document the workings of my platform and applications. A couple of months ago, I used it in my explanation of Steemit through a comparison with Facebook.
As many of you have noticed, we have a lot of new accounts signing up lately. It's great to get more members and I enjoy meeting these new people. I understand these people might have a lot of questions about our platform and its inner workings, which is why I wrote this article.
I remember what it was like when I signed up at the beginning of the year. I just started blogging and interacting with other users, but I didn't know a thing about cryptocurrency. One of the most scary things of Steemit was my wallet. The options in there were very confusing and I didn't understand what was what and how it all worked together. That's why I've decided to share this flowchart again. I hope it will help our new members in understanding the platform better.
Let's first start with the rewards we get.
Curation rewards: These rewards are given to members as a reward for voting on valueable content. They are payed out in Steem Power.
Author rewards: These rewards are given to members as a reward on their blog posts. The more people value your content and vote on it, the more you receive. They are payed out in Steem, Steem Power and Steem Dollars (SBD). Lately, there is no payout in Steem, where about a month ago, there was no payout in SBD. I guess this changes from time to time, though I'm not sure why this is.
Now onto the currencies. For this, I have a flowchart which might help understand things.
Steem: Steem is one of the cryptocurrencies you can earn on Steemit by posting. You can exchange it for Steem dollar or other cryptocurrencies (dependancy of the market) or you can power it up for Steem power (one on one).
Steem dollar (or SBD): This is the other cryptocurrency you can earn on Steemit by posting. You can exchange it for Steem or other cryptocurrencies (dependancy of the market). The worth of this is pegged to the US dollar.
Steem power: Steem power is where your power on the Steemit platform comes from. The more Steem power you have, the more your upvotes are worth (and the more you can earn from your votes). You can power down to convert this to Steem, which is a process of several weeks.
Your wallet also contains a Savings option. This is where you can deposit your currencies to keep them safe. It has a 3 day withdrawal period, so that if you account were to get hacked, you'd have 3 days to get it back, before your hacker can move your crypto off of your account.
The Estimated Account Value information is just that, information. It is based on the contents of your wallet and the market prices to give you a rough estimate of what the crypto in your wallet is worth.
There you go! I hope this helps in understanding the wallet a little better.
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Header image taken from this post by @samstonehill. Check out his other Steemit images!
What a great informative post!
Thanks for crediting me for the image :)
It's not easy to photograph lightening!
Thank you!
Ofcourse, it is yours after all! It was the one I liked best!
I know, photographing lightening is a pain! I did it a few times, but I can only do it with a perfectly dark sky. It's amazing how there's actually more visual than just lightning! I've not mastered that yet :D
The only way is long exposure time-lapse photography. This way you are shooting for an hour and you are bound to catch something cool ;)
Aah, see I've never tried that yet! Maybe one day I will, it sounds pretty cool :-)
It is a great photo! Well done xx
Thanks very much for the comment ;)
Awesome photo!
Beautiful flow chart. It took me weeks of reading articles when I first started on here to figure out what you show well in a simple image lol.
Yes, that happened to me too! I'm happy to hear you think it's useful :D
This is an excellent post! Very concise yet informative, and written in an idiom of which the common layperson can easily understand which is very important for the Steemit and or crypto newbie.
I'm happy to see your post has made a good amount in terms of currency as well, it's worth it.
Thanks and praise 🙏 V
Thank you! I'm so happy to hear you found it useful. I do try to write my posts for as wide a public as possible. I know what it was like when I first saw our wallet, so I'm just trying to make it a little easier for all of our new members :-)
If there would've been more posts like yours when I was learning about all of this crypto stuff I definitely would've understood it all a lot sooner. A great deal of the information out there is written in developer terminology, but we need more posts like this.
I feel that it's our duty to break all of this info down (once we've completely comprehended it) so that the new people showing up every day have an easier time getting involved and our crypto message starts to spread like a wild fire! The flames are being stoked and I need to start sharing my information as well.
Thank you again, I am truly looking forward to reading your posts. :)
I agree with you, we do need to explain in an easy language. Honestly, I'm still figuring all of this stuff out aswell. Baby steps. I might try to document my learning process some more, so that others can benefit from it :-)
I'm still learning as well. My education would be going faster if I typed my notes as opposed to writing everything out, but the action along with the six colored pens I use is the way I have to do it when I'm learning from scratch.
I took a class that taught about social triggers & the like and one day we learned that the more senses we can tie into our learning the easier the information is to recall. We were required to take notes with markers that not only varied in color, but smelled as well. My pens don't smell anymore and I have so many journals I don't know what is in where half the time, but being artistic where I can be along with the other triggers have made a noticeable difference in my memory recall. And nowadays I leave enough room for a table of contents lol!
You are absolutely right though, "baby steps" for us till we can transcribe all manner of information in the cryptoverse in a way that cuts the time in half for others. The generosity in the crypto world is one of the biggest reason I've been able to make it as far as I have.
That's a very handy thing you've learned there! I never really thought about that much. I did scribble everything down with pen and paper back at school, instead of typing it. It just felt easier to correct and add quickly (I write very small!). I always kept a notepad with me at work aswell, it felt more natural to me during meetings.
Anyway, I'm sure we'll keep learning. There is much to learn in the crypto world and like you say, there are many kind people who don't mind explaining when you ask :-)
The class was amazing! Power Business Basics. I took it about 11 years ago when I first started college. Mainly he taught a lot of Robert Greene - The 48 Laws of Power and that which he learned as a corporate negotiator.
I enjoyed speaking with you and appreciate you for engaging with me.
I'll try to remember the advice, next time I need to learn something!
I enjoyed speaking with you too :-)
Very well explained @playfulfoodie. Useful info that I resteemed.
Thank you! I'm glad you find it useful :-)
When you've broken it down. It now totally makes sense. Your post is resteem-worthy and of you don't mind I'll be sharing your flowchart around to all the people I bring into Steemit!
Thanks so much! I'm glad you think it's useful! You can use it, not a problem :-)
Many Thanks, Very easy to understand.
I'm glad to hear that!
If I were to sell my steem on an exchange, and I selling steem or steem dollars? Thanks!
You can sell either. Both have their own market on exchanges. I have noticed they sometimes rise and fall together, but SBD kind of stick to a solid bottom.
As a newbie Im getting my head around how all this works, you made it easy to understand, Lets all steem ahead thanks & cheers
Thank you, I'm glad to hear I helped!
Very well explained.
Let's hope we get some bigger exchanges soon that let you convert Steem/SBD to Fiat immediately without going through bitcoin, hehe.
I like what you've done with the steemitboard logos btw, I might copy that footer idea from you. :D
Thank you :-)
Would be awesome if I could just exchange steem/SBD for euro's! But I guess we'll have to wait a bit for that to happen...
Thanks, I can't take credit for the footer idea though! I copied it a few months ago when someone explained how to do it in a post. Not sure who it was though...
Thank you, a simple explanation that can easily be understood (even by me).
Thank you, I'm glad to hear you find it useful :-)