Understanding SBD vs. STEEM vs. STEEM POWER: A Simple Guide

Understanding SBD vs. STEEM vs. STEEM POWER

A Simple Guide for Beginners

If you’re new to the Steem blockchain, you’ll notice three different tokens in your wallet:

STEEM

Steem Backed Dollars (SBD)

Steem Power (SP)

Let’s break them down in the simplest way possible.

1️⃣ STEEM – The Main Cryptocurrency

STEEM is the primary token of the Steem blockchain.

🔹 It can be:

Traded on exchanges

Transferred to others

Converted into Steem Power

Converted into SBD

Think of STEEM as the base currency of the platform.

2️⃣ SBD (Steem Backed Dollars) – Stable-Value Token

Steem Backed Dollars (SBD) is designed to be close to 1 USD in value.

🔹 Used for:

Receiving post rewards

More stable earnings

Converting into STEEM

It behaves more like a digital dollar inside Steem.

👉 If you want more price stability compared to STEEM, SBD is useful.

3️⃣ Steem Power (SP) – Your Influence & Voting Strength

Steem Power (SP) represents your influence on the Steem platform.

🔹 The more SP you hold:

The stronger your votes

The higher curation rewards

The more influence you have

⚡ You cannot trade SP directly.
To convert it back to STEEM, you must “Power Down”, which takes time (released gradually).

Think of Steem Power as:

🔒 A long-term investment in your account.

Quick Comparison Table
Token Main Purpose Can Trade? Stability
STEEM Main currency ✅ Yes Volatile
SBD Stable reward token ✅ Yes More stable
SP Voting power & influence ❌ No (must power down) Locked value
Simple Analogy

STEEM = Cash 💰

SBD = Digital Dollar 💵

Steem Power = Ownership + Voting Rights 🗳️