What is Steemit & How to Earn with Steemit?

What is Steemit?

Steemit is a blockchain-based social media platform that rewards people for creating content. It is a place for individuals where they can create content, promote the content they deem good, comment on others stories and all this while earning money, sometimes thousands or even tens of thousands of dollars for single posts.

Steemit is a brainchild of Daniel Larimer, founder of BitShares, and Ned Scott. It has been built on the technology developed by Larimer called as Graphene, which is used for the successful deployment of application-specific blockchains.

So, Steemit comes as an innovative social network that rewards people for their contributions, irrespective of their race, religion, gender, or any other bias. It aims to build a “small town” community where residents are awarded for their time, effort, and creativity. It is done through digital points called “Steem.”

One of the unique features of Steemit is that it combines aspects of Facebook, Twitter, and bloggingto make way for site users to get monetary benefits.

Steemit is a social network that resembles a lot like Reddit, but with one “Huge” difference:

With Steemit, not only content creators get paid when their work gets upvoted, but also people who go on to curate the best content on Steemit by upvoting others work.

The Steemit platform uses a new type of digital currency (Steem), much like Bitcoin which is another very popular digital currency. Every day some new units of this currency are created by the Steemit platform and are distributed to the users. These digital currency units can be exchanged for actual real money.

Best of all, it doesn’t cost a dime to get started with Steemit.

You can create your user account for free on Steemit, and get going by publishing your content directly within minutes to Steemit by using its built-in blogging & publishing tools.

So, Steemit proves one of the best social news platforms that payusers with digital currency (Steem) for posting and upvoting good content.

How does Steemit work? (Making Money with Steemit)

To start with, signing up on Steemit is free.

Steemit pays you for taking part in its theme activities through Steem, Steem Power, and Steem Dollars. Steem has already become a popular digital currency. The best thing is that the payment can be converted to US Dollars in exchanges.

Basically, there are two opportunities for you to make money with Steemit.

First is by Blogging or Posting. Here, you have to share your original and unique posts. When other members up-vote your post, you receive a payout. The number of upvotes determines your payout. Depending on the number of upvotes you get, you can receive 75% of the total payout.

Second, is by Curating or Voting. Steemit pays you for upvoting a post before it goes viral. You are entitled to a curation payout when you upvote a post. The reward amount can be up to 25%. However, it also depends on the amount you have vested, known as Steem Power.

Steemit also allows for currency mining. However, it’s not the primary way to earn money. Each day, new Steemit currency units are created and distributed to the users who engage with the site. Steemit comes with a simple philosophy, “the more you engage, the more you have.”

Steemit rewards users for their content. People who upvote content on Steemit are also awarded for curating the best content available on the site. Even Commenters are paid for adding to the discussions.

The Steemit Currency Units

Steemit provides three different kinds of currency units.

They offer Steem, Steem Power, and Steem Dollars.

We will explain each one of them.

Steem:

It is the most liquid type of currency available on the Steemit platform. These currency units can be bought or sold for actual money on the open markets. They can be traded like bitcoins or a company’s stock. They can be converted into Steem Power, Steem Dollars, or if you want, they can be traded for real cash on crypto exchanges.

However, you should not hold these for too long as more Steem Units are created each single day. If they are held for a long time, they become diluted and go on to lose value.

Steem Power:

Steem Power Units provides you the opportunity to have ownership in the network. With Steem Power Units, you make a long term investment in the currency as these units cannot be sold for two years. As the network grows, so does your chances of making more money in the long run.

As much as 90% of the new Steem Currency that is generated each day is distributed to those who hold Steem Power Units. Moreover, half of the pay you receive for your content comes in the form of Steem Power Units. It determines the amount of influence a user can have on Steemit.

Steem Dollars:

The third and final form of currency on Steemit is Steem Dollars. It never gets diluted or goes on to lose its value. They are a stable currency which can be sold at any time.

It is a market-powered token which is pegged to $1 USD. People use them for upvoting posts on Steemit. 1 Steem Dollar represents any amount of Steem for reaching $1 USD.

Moreover, when you create popular content, as much as 50% of your pay will be in Steem Dollars. And you get richly rewarded for holding Steem Dollars. Holding Steem Dollars pays 10% interest.

However, Steem Dollars cannot be used outside the Steemit platform. You require converting Steem Dollars into Steem and only then you can convert that Steem into Bitcoin or USD.

Options Before you when you Earn Steem Dollars

Steem Dollars can be converted to Steem and can be sold immediately on the open market for real money. So, Steem Dollars give you the opportunity to cash out.Holding Steem Dollars pays you 10% interest.Steem Dollars can be exchanged for Steem Power and thereby get an opportunity to invest in the future of the currency.

How is The Newly Created Steem Distributed?

Each day, as much as 90% of the new Steem Units are rewarded to users who have Steem Power Units. Rest 10% of the new Steem Units is paid to content creators, curators, and commenters.

When your created content earns money, you get 50% in the form of Steem Dollar Units which can be exchanged for actual money or else you can convert into Steem Power. The remaining 50% is paid in Steem Power. These Steem Power Units are locked for two years.