Why Steem Price is Dropping, Why It Will Bounce, and How to Make It Work For You

It is no secret that Steem Price has been dropping like a rock in the past few weeks since it hit its peak of $4.33 on July 20th. In fact, if you bought Steem on July 20th and held it until today, you'd have lost about 53% of your investment. A $1,000 balance on July 20th is now worth closer to $470.

A $17,000 payout to a trending post on July 20th is the equivalent of a $7,990 payout today. Painful, isn't it?

Not as much as you may think. Buying (or earning) Steem at its peak may hurt when you compare it to today's price of $2.05, but let's zoom-out and look at the 30-day chart.

As an avid stock trader, this chart scares me. Steem price went up. Fast. In fact, it almost tripled overnight between July 11th and July 12th for a 194% increase. Do not be surprised when something goes back down after such a dramatic move. This is called Profit Taking. If you go a $1,000 payout on July 11th, that $2,980 account balance looks enticing. If Steem were a stock, I'd say get out and wait until we see an upward move.

But this is not a stock. It is Steem, and Steem is more than your average cryptocurrency. I've read the whitepaper and loved what I saw, and you should too. We are looking at a different animal, and the difference is in curation awards. While most cryptocurrencies are risky to hold, Steem rewards you for it, and that difference will be the source of Steem's longevity. You can survive the drops. I refer you to @liberosist 's post in Steem-Help for a guide.

https://steemit.com/steem-help/@liberosist/mind-your-votes-an-investigation-and-guide-to-maximizing-your-curation-rewards

He outlines some best-practices for getting the most out of your voting, which include timing your votes, working within the rules that govern payouts, and input on bots and what they do to the community. Check it out!

From and investing standpoint, now is not the time to BUY or Sell Steem on the open-market. Only a fool would Power-Down now. Instead, this is the time to increase your Steem-Power; it is the source of Steem's longevity. In fact, if you retained your Steem-Power while following @liberosist 's guidance, you would have retained as much as 61% of money you would have otherwise lost. Image taking advantage of curation awards while the price of Steem increases.

One last thing- let's take a somewhat closer look at that 30-day chart:

$1,000 worth of Steem on the 4th of July was worth about $17,500 on July 11th, just nine days later. That same value was worth closer to $18,000 on July 20th. This increase will happen again when Steem finds its bottom. In the meantime, build your blog, find followers, establish your niche, and contribute your upvotes. Reward yourself for contributing to this community. Steem will rival Bitcoin before you know it.