First, Let's clarify a Misconception
Steem Power (SP) is NOT a different currency to STEEM.
Often times I see people stating that Steemit has 3 currencies. That is not true. There are only 2 currencies: STEEM & SBD. SP is actually STEEM.
When you convert STEEM to SP, you are not trading it for a different currency. What you are actually doing is storing STEEM for long time. (This is called Staking) You are essentially putting that STEEM in a vault. SP is actually STEEM.
So Why is it important to have SP?
If you are interested in making earnings, you need SP.
When you own SP you get 4 things:
- Daily allotment of votes (most important)
- Earn Interest
- Daily allotment of bandwidth to use Steemit
- Right to vote Steemit witnesses (leadership)
I see plenty of people on steemit with the minimum amount of SP in their account and yet they complain that they don't make any money. Imagine If I loaned you $0.00 and I expected hundreds or even thousands in returns. You would think I was crazy.
Well, you wouldn't expect to invest $0.00 into the stock market or a business and expect to get rich. Would you?
SP is an investment. It should be treated like an investment.
Once you have SP, you can use your daily allotment of votes to judge content. When you do that, you get rewarded in SP, STEEM, and SBD. You can also sell those votes to someone that wants to use them. A good place to find someone to sell your daily allotment of votes is on MinnowBooster. Also, when you have SP in your account, then you get interest. It not a large amount of interest, but it is an added bonus.
SP gives you bandwidth
If you get a new free account, then that account is loaded with a tiny amount of SP and vote delegation. This is essentially Steemit Inc giving you some votes to use as well as some bandwidth.
Here is an account for example that has a very tiny amount of SP in it and some delegation. That is barely enough to prevent that account from going dead. If SP goes too low, then the account will not function because it is not creating bandwidth to work. The SP is not consumed to create bandwidth. Instead, the bandwidth is rewarded for you staking your STEEM in your account.
SP gives you the right to vote for 30 witnesses
When you store your STEEM in SP, you have a right to vote the people keeping the block chain alive. The more SP you have the more weight your vote has. If the witness is doing a poor job at recording your data (comments, votes, and transactions) to the block chain, then you switch your vote to someone else that is doing a better job. Ever wonder why STEEM transactions are Free and Fast? That is because the witnesses processing these transactions don't want to do a bad job and lose these votes.
SP legitimizes you
With the free account preloaded with SP and no investment from account owner, others are going to believe that you are only using Steemit for educational or entertainment purposes. That is perfectly acceptable, but you are not likely going to get voted when people think you are just here to read articles.
Lets do a mental exercise:
Remember when I gave the example of loaning $0.00 and expecting returns? Now just imagine the look on people's faces when they are expected to make payments when the loan amount was $0.00. They would probably look something like this.
Now you have that mental picture
When a person has invested $0.00 in their account and beg for votes or get mad for not making any money, then this is the look they can't see from the other side.
Now it is time to make a decision:
a) Don't invest and use Steemit to only read articles and comment.
b) Invest into SP and use Steemit as an investment to make money.
I recommend doing what the pros do.
Please remember to VOTE and ReSteem
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For a breakdown of how Steemit Rewards system works:
For a breakdown of Steemit Keys:
https://steemit.com/life/@socky/do-you-understand-your-steemit-keys
Thanks for sharing! A link to your post was included in the Steem.center wiki article about STEEM Power (SP). Thanks and good luck again!
Thank you. You can't see it, but I'm doing a happy dance.
Excellent post!,you need to invest money to make money, it's quite simple yet a lot of people want something for nothing.
Come on people if you believe in the platform invest money in it as well as time and you will be rewarded handsomely.
I'll resteem this to spread your wise message to the sheeple!
We just need to educate. Many users don't understand.
Exactly. MinnowBooster delegations paying 15%+ all day long in a down market. It is higher when the market is up. Can't beat that.
Hmmm interesting. I didn't know SP was behind bandwith.
You are doing such a great job educating steemians :)
I'm glad you found it useful. One thing I forgot to mention is that if you delegate ALL your SP and leave none for yourself, your account stops generating bandwidth. You will not be able to make transactions, undelegate, comment, or vote. It is important to leave a little amount of SP in the account. If you forget and this is done on accident, then you need to buy a tiny amount of SP to get the account functional again.
oh ok.
That is useful to know :D
@socky i was little bit confused about SP. But you made my doubt clear now. Great work buddy
Thanks @socky for this wonderfull information. You cleared all my doubt and made me understand the difference between steem and sp. Also very interesting thing you shared that invest in sp and use steemit as an investment to make money
Wow u explain so clearly.
Can u share ur views on this
https://steemit.com/cryptocurrency/@heythere12/next-coinbase-coins-listing-zrx-omg
Damn! @smartsocial got you. Haha
But I don't get u😐🤔
I really dont know what is sp......now i got to knw everything.this.........ur article very useful informative...........great job.....so ......i m resteem ur post on my blog .......check my blog to thank uuuuuuuuuuuuuuuuuuuuu
Thanks for this information dear sir.. I am beginner please help me dear please
Thank you for your excellent post and for the informative links you gave. I am new here (about a month) and today I jumped two points from 37-39. Not sure what happened but I am delighted. YEA!
That is your reputation. With more votes to you, the reputation will go up. Those votes require weight that is based on the SP in their account. You can see that having SP in your account is important.
Yes! I learned that. I have been powering up everything that comes in because I am new here, and need all the SP I can get.
I understand the SP part. Can you elaborate for me,"Daily allotment of bandwidth to use Steemit." My bandwidth is being used 0.5% and 99.5% is sitting idle, I don't know how to and where to use it. What am I going to do with the additional bandwidth.
It doesn’t take much SP to get bandwidth. If you have a tiny amount of SPand no delegation to you, then you could be at risk of hitting your limit if you post a bunch or make many transactions. If you run into this limit, you will need to wait until you build up bandwidth or get mor SP.
looks like you are not at risk of running out of bandwidth with your usage.
Socky thanks for the information, you are amazing.
You bring a good explanation of the advantages of Steem Power.
I hope it catches on. That would grow the community.
Excellent information! Thank you for teaching us this important topic about investing in steem.
Really nice blog..but its quite hard for new just like me to understand this market...
i can't understand what can I say.As a new user, I could not understand how to make strong my place in steemit ? After reading your post i got the way to do a good job in streemit and i clearly understand how to earn from streemit.your post was excillent.
it's really a great post on steemit...it helps the beginner a lot... thanks a lot @socky . can I gain my steem power from blockchain or others accoun?t
The absolute best returns come from creating quality blogs. It is hard work though. The easiest no-work way to build SP is to sell your votes with a delegation. This no-work solution and can be done at MinnowBooster. You can also build your account by commenting and voting. This provides smaller returns and results vary, but can be fun and you support your authors in the process.
sell your votes! ......... I think you meant to transfer my steem to minnowbooster?
NO.... You never transfer any STEEM. STEEM belongs to you and stays in your wallet. The STEEM stored in SP generates votes. Those votes can be sold. It is done through Delegation. You are not delegating STEEM, instead you are delegating the votes generated from the STEEM. A person using your Delegation has no access to your wallet other than viewing it just like everyone can.
It is really the best form of investment. A normal investment requires you to hand over your money. That money is spent in the business activities. It could go towards payroll, construction, materials, operating costs, legal fees, etc. The most important point is that your money is spent. If the business fails, that money is gone because it has already been spent.
The difference with Steemit investment is that you keep your money. It stays in your wallet and no one but you has the keys to that wallet. Votes that are generated from your SP are highly valued and can be sold while your STEEM stays in your possession.
Hopefully that clarifies things.
delegated steem power is not shown beside my stem power wallet ..will it be happen automatically or there is a way to get delegated steem power (upvotes) from my steem or others source? please ans. me.
The only time delegation is automatic is when you initially sign up for a free account and it comes with a tiny amount. That delegation taken back over time by the owner. Any delegation to you will show a (+). Any delegation you you give will show (-). If you delegate to someone else, be sure to leave some small amount of that SP delegation to yourself. If you delegate 100%, your account will not function as the SP generates Bandwitdth. I recommend leaving at least 3 SP worth of delegation to yourself.
If you want to sell votes. Try using MinnowBooster. If you want to buy votes. Try using MinnowBooster.
@socky Thank you very much for sharing such a valuable information on Steem Power
I always learn from your posts as I follow you. You're a valuable source of info. So, here's a question "out of right field:"
I was experimenting with BlockTrades and traded some STEEM for BitShares. Now I can't recover or trade BTS on BlockTrades because it requires a BTS wallet. Tech support from both BT and BS have tried to help, and indeed they can prove my BTS went to the BlockTrades in my Steemit account name. I later created a BTS wallet on Bitshares.org but of course my balance is zero and I can't transfer BTS from BlockTrades. Question: Are those BTS on BlockTrades contributing to my SP or account balance, or are they lost? Thanks!
New to this and that really helped. Thanx! 200.gif
I am just glad I didn't make the mistake of not coming in without a decent stake in my hands. Now I know how to move forward.
You are really an amazing guide @socky.
tengo SP, a la hora de upvote, simplemente voto puesto que no me sale ninguna barra para decir cuanto quiero ofrecer.
This was an awesome explanation, and I know it certainly clarified a lot for me. Thanks for sharing!
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thanks for sharing this info again,I could learn a lot I m just new here...