Streemit Basics– SBD, SP and STEEM

abhishekrawat (43)in #minnowguide • 6 years ago

SBD, SP and STEEM..... This terms confused almost everyone when they were newbies, atleast this terms confused me.

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So here's some basic information about them, especially for newbies (minnows) as newbies have lots of things to understand about steemit.
So let's start -

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1) What is Steem Dollar (SBD)?

SBD means "Silent But Deadly" .......just kidding. SBD means "Steem Based Dollar".
You can call it a cryptocurrency for the users in steem based platform.
It is internal currency of steemit. It is pegged to the US Dollar as 1 SBD = $1.00 of Steem when converted.
It can be converted into steem and steem power internally and also can be exchanged into other cryptocurrencies on exchanges like Bittrex or poloniex. It can all be transfered to other steemit users.

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2) What is Steem Power (SP)?

Steem Power (SP) can also be seen as an internal currency but in this case it is not tradable on external exchanges. SP gives benefits to steemit users.
SP holders also gain increased influence in their voting power, it allows user to issue higher rewards to authors (including himself) and claim higher rewards from curation.
One can convert its SBD and Steem into Steem Power (SP) in a process called powering up and can also convert Steem Power (SP) into Steem in process called powering down.
Powering down process takes 13 weeks in which the selected amount of SP gets divided into 13 parts which user gets 1 part every week upto 13 weeks.

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3) What is Steem ?

STEEM is fundamental unit on steem blockchain. STEEM is a liquid currency and can be bought or sold on exchanges. It can be transfered to other steemit users. STEEM can be used to "power up" and become Steem Power. It can also be exhanged into SBD on the internal market within Steemit or traded on an external exchange like Bittrex or poloniex.