Steem Coin: A Beginner's Guide To Investing

Steem is a cryptocurrency that powers Steemit, a social media platform where users can earn STEEM rewards for creating content. Users can also earn rewards for curating content by upvoting posts they like. The more Steem Power a user has, the more Steem or money they can give to other users when they like their content. There are currently about 267,000,000 Steem in circulation, and it can be actively traded on exchanges such as Binance for other cryptocurrencies. However, some users have questioned the economic model of STEEM due to its high inflation rate, which can impact the value of the coin.

Investing in STEEM via Steemit.com

Steemit.com is a social media platform that rewards users for creating and curating content. It is built on the Steem blockchain, which enables social networks to be placed on a blockchain with cryptocurrency so that users can get paid for contributing valuable content.

To invest in STEEM via Steemit.com, you can follow these steps:

• Sign up for an account on Steemit.com.
• Create content and engage with the platform by commenting, voting, and curating content. You will be rewarded with STEEM tokens for your contributions.
• You can also buy STEEM tokens directly on the Steemit platform using other cryptocurrencies like Bitcoin, Bitcoin Cash, Ether, and Dash.
• Alternatively, you can purchase STEEM tokens from third-party exchanges like Binance, Bittrex, Upbit, and Blocktrades, and then transfer them to your Steemit account.
• Once you have acquired STEEM tokens, you can choose to hold them in your Steemit account or transfer them to a wallet or private key for long-term storage.

Additionally, Steemit.com offers instant transactions with zero fees, and the ability to convert STEEM into Steem Power, which gives you more influence within the ecosystem.

Converting STEEM into Steem Power

STEEM Power (SP) is STEEM that has been locked in and vested, meaning it cannot be immediately withdrawn to spend. Converting STEEM to SP is called "powering up". This can be done by clicking the down arrow next to the STEEM in your wallet and selecting "Power Up". 1 STEEM = 1 Steem Power when powered up.

• Go to your Steemit homepage and select the "Wallet" tab.
• Under "STEEM", click the carrot to the left of your $ amount.
• Select "Power Up" from the menu of options.
• Enter the amount of STEEM you wish to convert to STEEM POWER.
• Click "Power Up" again to confirm the conversion.

You can also convert Steem Dollars (SBD) into Steem Power. Here is a guide:

• Go to your Steemit homepage and select the "Wallet" tab.
• Under "STEEM DOLLARS", click the carrot to the left of your $ amount.
• Select "Market" from the menu of options.
• Type the "Total SBD" you would like to convert.
• Be patient! Sometimes a trade won't go through right away, especially if it's a volatile day in the market.
• Once your SBDs have been fully converted to STEEM, go back to your wallet.
• Under "STEEM", click the carrot to the left of your $ amount.
• Select "Power Up" from the menu of options.
• Congratulations! You've just converted Steem Dollars to Steem Power.

STEEM's inflation rate

STEEM is the first social media cryptocurrency. It has the ability to host multiple social media platforms such as Facebook, Twitter, Instagram, YouTube, Reddit, Snapchat, and Pornhub. The amount of Steem available in the market inflates at a rate of 9.5% per year. This is significantly higher than the average inflation rate of 2%.

The high inflation rate of STEEM can be attributed to the fact that it is a cryptocurrency, and cryptocurrencies are known for their high volatility. Additionally, the supply of STEEM is not fixed, which means that more coins can be created over time, leading to an increase in the overall supply and a potential decrease in value.

The high inflation rate of STEEM may be a cause for concern for potential investors. Inflation can lead to a decrease in the purchasing power of a currency, as it takes more units of the currency to buy the same goods or services. In the case of STEEM, this could mean that the value of the coins decreases over time, resulting in losses for investors.

However, it is important to note that the inflation rate of STEEM is relatively stable and has not shown significant fluctuations. Additionally, the high inflation rate can also be offset by the potential for capital gains if the price of STEEM increases faster than the rate of inflation.

Overall, while the high inflation rate of STEEM may be a factor to consider when investing, it should not be the sole determining factor. It is important to weigh the risks and potential rewards of investing in any cryptocurrency before making a decision.

STEEM's value

STEEM is a blockchain-based platform that aims to compensate users for their contributions to the network. It is a publicly available, incentivized blockchain database that allows users to interact with each other and receive compensation in return. The platform is designed to create an instant compensation opportunity for users based on their value to the network.

The network ensures the fair treatment of contributors by running a reward structure that reflects each user's contribution. It operates on a model of one-STEEM, one-vote. This means that individuals who have contributed the most to the platform, as measured by their account balance, have the most influence over how contributions are scored.

STEEM is the primary coin of the protocol and is produced by the network daily. The new coins are distributed to content curators, authors, and users with Steem Power holdings. The other two cryptocurrencies are Steem Dollars (SBD) and Steem Power (SP).

The value of STEEM comes from its ability to compensate users for their contributions. The more a user contributes to the platform, the more STEEM they can earn. Additionally, the platform has a large user base of over 1 million accounts, which can drive up the demand and value of STEEM.

The potential for future growth and the development of other social media platforms on the STEEM blockchain can also impact its value. However, there are risks associated with investing in STEEM, such as the potential for slow growth or a decrease in users, the success of other platforms, and the security of the code.

STEEM voting bots

Bots are software applications that run automated tasks over the internet or blockchain. They perform tasks that are structurally simple and repetitive at a much faster rate than humans. In Steemit, bots are commonly used for upvoting posts.

There are several voting bots available for the STEEM ecosystem, including:

• Steemvoter: An automatic curation bot with an easy-to-use web interface. Users can sign up at https://steemvoter.com/ and will receive a 2-factor authentication code in their email. After signing up, users can add their account and posting key (this way, their STEEM is safe).
• DrDoogie Bot: A voting bot that will trail the votes of other accounts and mirror their voting pattern.
• Minnow Support Project: A cyborg controlled by a "bot" in Discord that has the posting key and can accept user commands to upvote posts.
• STEEM Autovote: A simple autovoting solution for STEEM users. It allows users to monitor multiple accounts and autovote posts (not comments).

Some users have expressed concerns that the use of voting bots may go against the spirit of Steemit as a social network, and that it could be seen as a form of manipulation. However, others find them useful for improving their ability to control their votes.

Frequently asked questions