Steemit is a community. As a community we have the opportunity to meet new people and learn from their experiences.
Steemit is a platform. As platform we have an opportunity to be rewarded for quality content and helping others.
So if you are engaging people and writing quality content, you should be on the road to success, right? MAYBE!
Understanding Reward Payouts Is Also Important!
There are three options for reward payouts.
1. Power Up 100%
Power Up means that all of the rewards you will receive for your posts are converted into Steem Power. Steem Power is important because it increases your vote strength. The Steem Power that you have accumulated, the more you can reward others Steemit users.
2. 50/50 (Default Option)
This default option divides your rewards into 50% Steem Power and 50% SDB (which use to mean Steem Back Dollar, but now means Steem Blockchain Dollar).
SBD is a token that can be used to make purchases or pay for services.
3. Decline Payout
You can decline to receive payout for your post. This is not a common selection, but you may ran across a blogger who declines payment.
Selecting 100% Power Up Versus The 50/50 Payout Option
There are two common scenarious you need to consider.
Making Payments
You should select 50/50 payout when you need SBD to make short-term purchases or pay for services.
Powering up
When thinking about powering up, you need to consider the cost of STEEM compared to the cost SBD.
Select 100% Power Up when the price of STEEM is strong versus SBD.
For example, Steem is $3 Dollars and SBD is $1. If you earned $4, you reward will be converted into $4 worth of Steem Power. In this case, you will 1.333 Steem.
Select 50/50 Payout when the price of SBD is strong versus STEEM.
For example, SDB is $12 and Steem is $3. If you earn $4 in rewards, you will receive $2 worth of Steem Power and 2 SDB.
Since 2 SDB is worth $24, you will be able to purchase 8 Steem (24/3), which can be converted to Steem Power.
Exchange SBD for Steem at the Market!
Right now the best place to convert SBD to Steem is in the market.
- Open your Steemit Wallet.
- Click on the triangle that is to the right of your Steem Dollars total.
- Click Market.
- Enter the amount of SBD that you will use to buy Steem.
- Click Buy Steem.
- Confirm your order.
- Login to complete your order.
- Go back to your Steemit wallet.
- If you want to convert Steem into Steem power, then click on the triangle that is to the right of your Steem total and click Power Up.
Your Turn
Let's continue the conversation in the comments. Feel free to answer any or all of the following!
- Did you know the difference between 100% Power Up and 50/50 Payout?
- Have you ever complete a transaction on the Steemit market?
- Have you ever used SBD to make a purchase or pay for a service?
I look forward to hearing from you.
@sumatranate
Image Source: All photos are screenshots from my Steemit.com account.
Excellent instructions, easy to read, I wish I knew you when I first started here on Steemit.
@reddust, thanks for the kind words. I wish I knew you too when you first started on Steemit.
I would have loved to have joined the community in 2016, but so glad that I ran across Steemit (and your blog) in June 2017.
I wish I'd known this 8 days ago. I received the payout from my introduction post today, but I'd selected 100% Power Up when I made the post, so I really lost out. I thought that I was going to get somewhere between 2.30 and 2.50 SBD, but I got 1.838 SP instead.
@originalworks
@penston, we learn so much as we experience life here on Steemit. Now that you know how everything works, you will be able to make the best decisions for your future here in our community.
Don't get down about missing out! You will have many more opportunities to earn SP and SBD.
Keep moving forward and keep Steeming!
Thanks for the instructions on market transactions, too. I wasn't sure which website I'd have to use for the transaction, so it's a relief to know that everything's already at hand.
The @OriginalWorks bot has determined this post by @sumatranate to be original material and upvoted it!
To call @OriginalWorks, simply reply to any post with @originalworks or !originalworks in your message!
I just read one other post about the 100% Power Up being not the best option right now and I'm kicking myself because I post I did last week I had on 100% haha. I'm glad to see your explanation now though because it also explained the reverse situation.
I did manage to do my first market transaction a few days ago too, which I used to power up, yay.
Thanks for sharing this info! Very useful.
@steffistasis, great job on your first market transaction. And great job on powering up!
Don't worry about the 100% post. We learn best from experience and now you have the knowledge to make the best decision for your needs.
Keep up the good work and keep Steeming!
Perfect! I've been wondering about this very thing. I was told to always buy Steem Power as in the long run it's supposedly the more valuable one. Your explanation makes sense.
So STEEM today is at about $3.50 and SBD is over $13. You're saying for now at least to use SBD for everything correct?
Thanks for the post!
In my opinion, @sumatranate are quite right, because SBD is quite valuable now. So, you can trade what you get in SBD and ... if you want invest it on SP ... you can buy STEEM and POWER UP it! :D
@jjudd, Steem Power is more valuable in the because it increases your upvote strength. Steem Power is a one to one ration with Steem. Steem Power is looked in until powered down. Steem is a tradable token.
Since I have been on Steemit (since June 2017), I had never seen SBD higher than Steem until recently.
I do not know your long term goals, but as long as the SBD to Steem ratio is over 1.5 I plan to take rewards at 50/50.
This is a well-explained article @sumatranate , thank you very much. Now I understand why we need to choose 50/50 instead of 100% upvote. I like how you presented the steps on how to market SBD and Steem.
Thank you for sharing this. I almost commented on the duplicate post. Resteemed.
@leahle, thanks for the comment. I am so glad that this post was helpful.
I have been on Steemit for 6 months, and I had never posted a duplicate post like that before. I feel a bit silly, but I will definitely be more careful from now on.
Keep moving forward and keep Steeming!
You're welcome. :)
Wow! This is really an important information for newbies.
I am doing exactly what you said right now. @sumatranate.
good day.
@yaanivapeji, I am glad that you thought this information was important. I hope it helps!
Hey!
I already checked the difference between the SP and SBD. In the beginning I read this paper, that is awesome and I advice all the newbies (like me) to read it, here is the link.
I didn't have opportunity to make a transaction yet because I need to wait 7 days, right? :D
Like I never had any SBD, I also never pay for nothing using SBD.
Congratulations for one the best posts I read for newbies, very easy to understand.
@criptomaster, thanks for the comment. I am impressed that you read the Steemit white paper. Good job!
You are correct. You start earning 7 days after your first post. Best of luck as you earn on Steemit. Someday you will be able to make a transaction.
Hehe! I get some advices from some experience people :D
very informative. looking forward to learn alot from you guys. keep it up and keep sharing your knowledge with us (new members).
@wisalkaash, I appreciate that you have a learning spirit. It is my pleasure to share what I have learned so far. I will do my best to pass more information along that is appropriate for new Steemit users.
Always ready to learn more n more...Self investment is very important for the growth.
Good information as I am still really new to SteemIt. I am going to have to look up what the prices of SBD and Steem Power are. I think on some instances, you have SDB typed instead of SBD by accident-a typo? Either that or I have some confusion here.
Wow! I glad I came across your post.
Wondered what those options were for, when I wrote my first post. This post clarified the matter for me pretty easily and its very important to know this information! Permission to pass this along, if possible!