What Does It Mean To Invest In Steem And What Are The Ways One Can Invest In Steem by lukman1

Good day to my fellow steemians and the great @steem-ghana community on the steemit platform. I come your way today to share with you the possible ways we can invest into our native coin which is the steem coin. But before that, I would love to explain what it means to invest in to a coin in the layman's understanding. Join me in this course and I wish you a happy reading.

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What is investment in cryptocurrencies

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Investment in the simplest form is to put your money or funds somewhere with the intention of making profit or positive return in the future. In cryptocurrency investment, a user owns an asset, coin or a token and holds it with the intention of the value of the asset to increase or appreciates so that they will sell them to make profit.

Investing in a cryptocurrency is advantageous to both the investor and the block chain or cryptocurrency project. But before you invest in a coin, make sure you carry out your technical and fundamental analysis very well to make sure that you are investing in the right project.

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Since we now have a fair understanding of what investment in cryptocurrency is, I would like us to divert our attention to investing in our very own coin which is the Steem coin.

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Investing in Steem

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I can't just start talking about investing in steem without giving you a brief and precise description of what the steem coin is and the blockchain that rewards it. So the question now is, what is Steem coin?

Steem coin is the native token for the steemit blockchain or in other words, steem coin is a cryptocurrency just like Bitcoin and Ethereum and it's a native coin for steemit. Steemit is a blockchain which functions or works like a social media and it provides a platform where users create their own content and share it with other users on the platform. The founder of the steemit blockchain is called Dan Larimer and he founded the blockchain in the year 2014. Dan Larimer is also the Chief Executive Officer(CEO) of the well known BitShares.

However, steemit is different from other social media platforms we know because the platform is decentralized whilst other social media platforms such as Facebook, Twitter, Telegram etc. are centralized. This means that the platform is not control by anyone, there is also no abuse of data on the platform at the same time no censorship. Not only that, steemit platform rewards their users who create and share unique and quality content on the platform.

I just made mentioned that steemit rewards it's content creators and curators, and I would like to tell you the kind of rewards this content creators are rewarded with. The blockchain reward it's users with three different kinds of cryptocurrencies, and what are they?

The currencies the steemit blockchain reward it users are listed below;

• Steem

• Steem Dollars (SBD)

• Steem Power(SP)

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This cryptocurrencies listed above are rewarded by the blockchain and we can invest in all of them. Let's take them one after the other for a better understanding.

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STEEM

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As I already explained, steem coin is the native cryptocurrency of the steemit blockchain and one wonderful thing about this coin is that, the Steem Dollar(SBD) and Steem Power (SP) are all relying and depending on the it. Investing in steem is one of the best choices you will ever make because the supply of the steem coins has increased automatically by 100% each and every year. And one thing about this coin is that, it does not depend on mining to create and supply new coins and this makes it very different from other cryptocurrencies.

An important thing to note is that, because there is always an increase in supply of the steem coins, it is not that advisable to hold it for too long. But you should rather convert it to other cryptocurrencies such as the Steem Power or Steem Dollars. You can also convert it to the cryptocurrency of your choice such as Bitcoin, Ethereum, Binance coin etc.

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Let's now talk about how to invest or store your steem for the price to increase so that you can make profit on it.

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We can buy and sell steem on centralized exchanges and one of the most well known centralized exchange is the Binance exchange. But before that, you need to transfer your steem to your Binance wallet and we can do so by following the steps below.

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• You first of all need to have a Binance account which is also verified.

• Login and click on deposit in your wallet as shown below.

• You then type Steem in the search box as I have indicated in the screenshot below.

• Click on steem as shown above and copy the address and the MEMO for the transfer. Make sure the MEMO is copied correctly to avoid losing your steem.

• You then login into your Steemit Wallet by using your username and your private posting key.

• The next step is to click on the amount of steem you have in your wallet as shown below.

• Click on transfer as shown or indicated in the screenshot below.

• You then type in the address of the wallet which is deepcrypto8 and then paste your MEMO in the required box and click onnext as shown below.

• Check through to make sure that you have provided the right details. Click on Ok after confirming that all the details are accurate and you are done.

You can go back into your Binance account to make sure that you have really received the steem. We can leave our steem coins here until the price appreciates or the time we desired to sell.

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STEEM DOLLARS

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Steem dollars is also a cryptocurrency and content creators and curators on the blockchain are rewarded with this cryptocurrency but not steem coin. One may ask why it's so, well the main reason is that steem is very volatile and it's rate of fluctuation is high. So the blockchain tends to protect it's users by rewarding them with the Steem dollars.

Users on steemit blockchain can cashout or withdraw the steem dollar currency if they want to. The can also cash it out by converting it to the steem coin on the blockchain. Some people might want to convert it to steem power, and even with that you need to change it to steem first.

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So I will give you the steps to follow in order to exchange your SBD for steem on the Steemit platform.

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• First thing to do is to login to your Steemit Wallet by using your username and posting key.

• You then click on the amount of SBD you have in your wallet as I have shown below.

• A drop down menu appears and you click on market as shown below in the screenshot.

• You then enter the amount of SBD you want to change to steem in the buy option and then click on buy steem.

• Confirm the amount you want to transact and click on Ok and your order will be placed.

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If you want to sell or hold it in a centralized exchange like Binance, follow the steps I showed in investing in steem coin above.

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STEEM POWER (SP)

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Steem power is the last and one of the most cryptocurrency we can invest in the steemit blockchain. Steem power is very useful and important to both the steem network and the users on the network because it is used to show how influential a user is on the platform. This means that, the more your steem power the more your influence on the platform and the less your steem power the less your influence on the platform.

A user cannot vote on other people contents or post if they have no steem power at all which shows how important this token is to the steemit platform. Steem power is an investment on the Steemit platform and it is regarded as a long-term investment for those who owns it. For steem power, you cannot sell it immediately like steem coin or steem dollar unless you have hold it in your account for 13 weeks and above.

On the steemit platform, users are rewarded with 50% steem power and 50% SBD indicating how important this token is to the user and the platform. We cannot trade Steem Power on exchanges just like the way we are trading the steem coin and the steem dollar. You can Power Up by exchanging your steem coin to Steem Power or you can also Power Down by exchanging your Steem Power to Steem coin. But it's advisable to always develop the habit of powering up and desist from powering down.

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Because Steem Power is a long-term investment and also helps in the building of the steem network, I will show you the steps to follow in order to power up your steem to steem power below.

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• First of all login to your Steemit Wallet by using your username and posting key.

• Click on the amount of steem you have in your wallet as shown below in the screenshot below.

• A drop down menu appears and you click on power up as shown in the screenshot below.

• Enter the amount of steem you want to power up and bear in mind that 1steem is equal to 1 steem power. You then click on power up after you are sure of the amount you entered.

• Click on Ok to confirm that you really wanted to carryout the transaction and you are done.

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Investing in steem is beneficial to both the investor and the steemit network, so I will encourage all steemians to start investing in this wonderful coin in order to reap the benefits in the future.

My last words is that, I will encourage everyone one of us to develop the habit of powering up as it will help us a lot in the long run. The Steem Power we hold also helps in maintaining the steemit ecosystem, so let's develop the habit of powering up and desist from powering down.

I hope this helps especially to the newbies who have just joined the community and don't Know how the platform works.

Thank you and have a nice day 😊.

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Cc: @magcarnie, @nattybongo, @oppongk, @njaywan.