Steem is a blockchain-based social media platform from which users can make money by sharing valuable information. An important feature of STEEM is that the platform reflects any contribution to e. g. a community or economy in the form of a fee paid out in the cryptocurrency STEEM.
How To Buy STEEM
So you’re interested in buying STEEM? Currently, there is no way to buy STEEM directly with fiat, so the best way to buy STEEM is to first purchase Ethereum, transfer it to your chosen trading platform and change it to STEEM. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for STEEM/ETH and confirm.
3. On the STEEM/ETH trading section you can now choose how much STEEM you want to buy with your Ether. Once you have chosen your amount, press Buy STEEM and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of STEEM.
What is Steem?
User-generated content has generated many billions of euros for the owners and shareholders of social media companies like Facebook and Twitter. Social media have an interest in users posting content that is valuable or interesting for other users, so that the social media platform remains popular and can therefore continue to earn money (through advertisements, for example).
Steem responds to this with a decentralised platform for social media and online communities by offering the possibility to automatically reward content owners and writers for their contribution to the group, based on the popularity and/or reviews of the content concerned. This reward is paid in the form of cryptocurrency, and ensures that users of a community want to create valuable content.
All information / content on the platform is stored decentrally in the Steem blockchain: this data cannot be censored and once in the blockchain this data will always exist.
Steem applies a number of principles to make their blockchain social media platform a success:
- Anyone who makes a contribution to the platform will have to own the content that has been contributed and will also have to receive the income and/or debt in proportion to the resulting income and/or debt.
- All forms of capital have a proportionate value. This means that the amount of time spent on creating content is as valuable as a financial contribution.
- The community or platform produces products and services to serve the participants. All improvements, contributions and resulting rewards therefore serve to make the platform better and/or more useful for the members.
Watch the following Steem explanation video:
Steemit and the 3 forms of value.
The network currently has 3 different forms of ownership: Steem (STEM), Steem Power (SP) and Steem Dollars (SMD). At first this creates confusion, but it is really very logical.
The decentralized social media platform that uses the cryptovaluta STEEM is called Steemit (steemit. com). Steemit users who create content, for example in the form of a blog, are rewarded for their contribution to the platform based on how valuable the content is for fellow users. This remuneration is paid to users 50% in SP and 50% in SMD.
STEEM is the crypto currency that can be exchanged on the open market for other cryptocurrencies or real money. The blockchain constantly generates new STEEM tokens, resulting in strong inflation in the currency. The new tokens are used to feed users of the Steemit platform in the form of Steem Power (SP) and Steem Dollars (SMD).
Steem Dollars (SMD):
SMD is in fact a smart contract in the form of ownership on the Steemit social media platform. SMD only has a value within the Steemit platform, which is exactly the same as the US dollar: independent of the STEEM exchange rate, 1 Steemit Dollar (SMD) is therefore always worth the same as 1 American Dollar (USD).
Owners of SMD receive 10% interest from the Steemit platform annually, as compensation for keeping cash within the blockchain. SMD can be converted at any time to STEEM, which is then exchanged at the current exchange rate.
On fictitious date June 1,2017 you will buy 100 STEEM at a value of $2, – each. You can convert this to Steem Dollars (SMD). As described above, 1 SMD is always worth as much as 1 USD, so you will receive 200 SMDs for 100 STEEM.
On fictitious date 1 June 2019, you have saved your SMD exactly 2 years on the Steemit platform. Due to the interest rate of 10% per annum, you now have 242 SMD. You want to sell them, but for this the SMD must first be converted to STEEM. However, the value of STEEM has fallen to $0.50 because of inflation, which means that on conversion you have to receive an equivalent to $242, – to STEEM: you will get 484 units of STEEM, which you can then sell for fiat money (euros/dollars) or other cryptocurrencies.
Steem Power (SP):
SP is a form of value on the Steemit platform that cannot be directly incorporated to ensure Steemit’s value stability. The opinion of Steemit users is weighted on the basis of, among other things, the number of SP that the user owns. Read: If a large SP shareholder considers certain content to be valuable, it will be more rewarding for the content writer than if someone with little SP evaluates the same content in the same way.
Both STEEM and Steem Dollars can be converted to Steem Power at any time, but vice versa: the inclusion of SP is gradual in order to prevent liquidity risks and stimulate sustainable growth and use of Steemit. SP can be converted into parts to STEEM by spreading the conversion over 13 weeks. In exchange for owning Steem Power, owners not only receive voting rights on Steemit, but also dividend from the blockchain: for every new STEEM token that the blockchain produces, an equivalent of 9 STEEM is distributed among all SP owners. Storing Steem Power is therefore the most profitable option in the long term.
What is Steemit? Watch the video below:
Steam value and price evolution
The value of the crypto-currency STEEM in euros strongly depends on the interest in the technology and use of Steemit and associated SMD and SP smart contracts.
Until 2016, the number of STEEMs doubled each year and, as a result of inflation, the value of STEEM fell by 0.19% per day when market capitalisation remained stable. In 2017, the community has made adjustments that have set inflation at 9.5% per year, which means that the value of the cryptomint will still fall if market capitalisation does not increase.
Cryptostart therefore recommends that everyone who wants to invest in STEEM should convert your STEEM directly to Steem Dollars (SMD) after purchase. If you want to invest in Steemit for the longer term and/or actively participate in the social media platform, you can achieve more return by converting the Steem Dollars back into Steem Power (SP).
For anyone who cannot invest in Steemit in the form of a financial contribution, it may be interesting to add value to the platform in the form of useful content. If Steemit continues the growth it has achieved so far, any investment in STEEM (SMD / SP) will certainly yield a good return.