Thinking of Steem as an Investment! #7

in #steem7 years ago (edited)

What are the benefits to thinking of Steem as an investment vs considering our earnings extra income to spend? Financially once of the largest steps we can take to financial freedom is thinking like an investor instead of a consumer. On day seven of Steem basic training, we take that step as we decide consciously whether we are going to be an investor on Steem, or if we are just going to use this as a paycheck and take everything we make out as soon as we can. View previous basic training days and more guides at http://steem.guide and watch the video on @dtube below!


Thinking of Steem as an Investment! #7


As we start getting the rewards from our posts on Steem, we may be tempted to just cash it out right away and celebrate. I've seen people with as much as twenty or thirty thousand dollars in payouts on a post, just take all the money straight off the platform and sell it, and miss the majority of the opportunity on Steem.

We work hard on Steem to do these blog posts. If we are lucky we have somewhat of a payout coming after seven days and when we have got that payout coming, then our initial response might be to just go straight to our wallet and say, "Okay. How do I sell this?"

If we have got some Steem or Steem Dollars we might initially be thinking, "How do I sell this? How do I turn this into real money?"

What I've noticed is that my friends that took that approach with Steem have missed the majority of the opportunity for success. Meanwhile, the friends that I have who have continued to double down, to reinvest, have done extremely well on Steem. I will show you one in particular who has done exactly that.

My friend Joe Parys has had several posts that have had huge earnings. We will take a look at his profile. What @joeparys has done since he started, he has both earned very well on Steem and he has continued to reinvest.

Now, he didn't start out earning a whole bunch of Steem. He didn't start out with a bunch of followers. He started out just posting basically to me. I was one of the only people that read it.

What Joe has done is continue to keep posting and posting. For his initial posts back when Steem and Steem Dollars were worth a dollar, he was lucky to make five dollars on a post just from me upvoting.

You will notice that most of the posts he made initially were voted up mostly by me and he didn't get a big payout for a while, and he kept posting and kept posting, then he got some higher payouts on here.

After 20-plus posts, he introduced himself and got a higher payout, and then he has one post that earned about $300.

He continued posting, which is often a big let-down after having a post that earns a lot to go back to posts that just earn normal. Then, I continued to upvote Joe and on some posts, he was getting a little bit more, and then over time he has continued to earn more and more on his posts.

He started using voting bots with the money he has earned to promote his posts. He has continued to buy more and now he has had some posts that have done extremely well all on their own and had huge earnings.

This one, in particular, is a $914 payout. Half of that in Steem Dollars, which at the time was worth about $10, which means thousands of dollars earned on this one video and consistently earning good now.

If we look at @joeparys' account, what we see is that Joe now has an account worth about $33,000 today, and Joe has not put in maybe more than ten or twenty percent of that in terms of actually buying into Steem.

What he has done is to continue to reinvest what he has earned. He reinvested in terms of taking the Steem Dollars and selling them into Steem, and then powering them up into Steem Power. Joe has also used his Steem Dollars earned with upvoting bots to then vote his posts up even higher.

Voting bots helped him to get more visibility on his posts and to get over 3,000 followers since he started in July 2017. It's six months later and Joe Parys is now one of the top users on Steemit.com, probably top 10, if not 5 percent, in terms of reputation and in terms of investment.

Now, the thing that happens with this is an investment mindset, that this is not something to just make a quick profit on today, to take it out and put it in our wallet, and celebrate, but that this is a long-term investment, that we serve on Steem, and we contribute to the blockchain on Steem.

Then, we have something that can potentially pay us out indefinitely like a retirement plan, like holding stocks, maybe not bonds, but like holding something of value. We must think like these Steem Dollars and Steem powered up into Steem Power, is something of value where we get indefinite influence off of that.

Therefore, it's incredibly powerful to think of our work on Steem as an investment, and an investment in our future online, especially as Steem continues to grow, as the value of Steem grows along with the number of users on Steem.

Looking at this as an investment is the opportunity of a lifetime. I've seen some of my other friends just put some money in and hoping to make some quick money back out by the price going up, or did not make it through the beginning, because the beginning on Steem is often brutal.

Joe Parys is one of the top instructors on Udemy.com. He has a very good income online already and he didn't think it was looking like it'd be worth his time getting started making $3 or $5, even $30 on a post that he worked hard on.

He didn't think this seemed like it was worth his time just on the amount of effort he put in versus the amount of money he got back out of it in the short term, and I explained this is a long-term thing, this is an investment, you keep working on it and you are building something that has gigantic potential.

I hope today this is useful to think of Steem from the beginning as an investment instead of something that's just a profit machine because that's how I think of Steem. I think of Steem today as an investment and I'm all-in on Steem as an investment.

I've got essentially all of my retirement, I've got everything in Steem as far as my investments go. I don't have any other investments. I have Steem Power and that is how I look at Steem.

You can see the results from that as I go to my profile. I bought about $50,000 of Steem by selling all of my stocks, all of my other cryptocurrency investments, and I'm grateful today to have $500,000 worth of Steem along with 23,000 plus followers, along with consistent earnings on my posts, even though I run a voting bot and don't vote anyone else up, people are kind enough to vote my posts up.

I'm very grateful for that and all of that comes from being an investor instead of a consumer. As long as we are consumers we never have enough money and we essentially always spend what we earn before we get a chance to have our money make money for us.

The one percent holding the majority of the wealth in this world, we think of wealth, we think of money, we think of earnings as investments. These are not something to just go buy a new car with and try to look wealthy, this is something to invest in.

I hope this has been useful to avoid the worst trap that happens to us on Steem after we have actually earned something, we don't think of it as an investment we think of it as shopping money or a little extra money. Those of us who reinvest in Steem and hold it as value, we are likely to make something way more valuable than a retirement portfolio somewhere else.

We are likely to make the investment of a lifetime in ourselves and in Steem by taking our Steem Dollars earnings, trading them on the market to buy Steem.

We go back into our wallet to power up that Steem into Steem Power, and then we have reinvested.

We can leave that Steem Power alone indefinitely, and we keep powering up.

Now, obviously, at some point, we might want to take a little bit of a paycheck here and there.

What I did, I just put my earnings back in for months before I took any paycheck, then when the price blew up, I took some paychecks for a while, and then for months more when the price went back down, I just reinvested.

Now that the price blew up again, I've withdrawn some, and yet all my total withdraws are less than 10% of what my account is worth.

In other words, I've kept most of all the principle intact and continued to actually earn interest that way.

If you just literally refresh my account, you will see that my Steem Power goes up all the time, and that's because I'm actually earning a little bit of interest all day, every day.

Thank you very much for experiencing day seven of Steem Basic Training.

I hope this has been useful for you.

Thank you for reading.

Final words


Thank you for reading this blog post, which was originally filmed as the video below.

If you found this post helpful on Steem, would you please upvote it and follow me because you will then be able to see more posts like this in your home feed?

Love,

Jerry Banfield with edits by @gmichelbkk on the transcript from @deniskj

Shared on:


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Would you please make a vote for jerrybanfield as a witness or set jerrybanfield as a proxy to handle all witness votes at https://steemit.com/~witnesses because we are funding projects to build Steem as explained here? Thank you to the 2500+ of us on Steem voting for me as a witness, the 2 million dollars worth of Steem power assigned by followers trusting me to make all witness votes through setting me as proxy, and @followbtcnews for making these .gif images!

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Or

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I think investing in Steem is a great idea right now! I have about 2.4k SP delegated to me right now, which is worth around 14-15k USD. My votes are worth about 1 USD each, which due to the weird peg of SBD is worth around 4 USD each.

If I self vote 10 times a day, I earn about 40 dollars, which is around 0.27%. If you compound that daily for a year, that's 156% return per year, assuming the price of Steem doesn't go up! This is why I think Steem is a great investment!

If i wasn't 100% all in on COSS, I'd definitely be spending more on Steem!!

How didn't get your Steem power delegated to you?

Im definately looking to get started in steem

Great strategy...!!

yeah i think thats a good way! also very good that you are not 100% invested in steem.


To go all in is in my opinion not a strategy, it is hope.


Im only since a few days on steemit, but im going to reinvest my earning in steem power too. But i also think about the idea to pay me out just a little bit, to reinvest that money into other cryptocurrencies. The goal behind that is to build up a good diversified crypto-portfolio, just out the earnings on steem.

What do you guys thing about that?


and thank you @jerrybanfield for your great input!
Keep going, you doing a great job!!


Greetings your @futurethinking :)

@futurethinking thank you very much for your upvote and comment. I am glad the post is useful for you.

I appreciate you also making your first witness vote for me at https://steemit.com/~witnesses because your witness vote helps indefinitely to fund projects growing Steem via @budgets!

@jerrybanfield ofc i voted for you! I also follow you on Youtube and steem! You doing such a great job. I see how much work you put in those posts and videos and thats what i want to appreciate!!


Yes nearly every post of you is usefull! :D


Greetings your @futurethinking

Hi
I used to follow you in YouTube and I succeed to sign up and I need just for you to promote my account as I start working hardly as advised. I realize that you are really great and I need your experience so I can also act better. Thanks and see you.

It's amazing if you really think about it. Today, 1 steem may be worth $5 so if you withdraw 100 steem tokens, you just have $500 to yourself and that's cool. Now imagine how it would feel if you could be patient enough to wait for 3 years when 1 steem token would be more than $100 . Imagine how mad you would be at yourself then. So be patient and power up. I know those who sold out 10,000 BTC when it was less than a dollar are now wishing they hadn't done that. Let's not make history repeat itself. Have faith in steem and read more on its development to back your faith in it.

Very true comments and a great approach to Steemit. I will follow you for more advice! Thank you

A few years from now, we could be very wealthy if we invest on steemit. Today, facebook's market cap is more than $ 500 billion. I strongly believe Steemit could reach the same value as FB someday, because we are much better than FB.

Hi Jerry, thanks for all the awesome tips. Is it complicated to set up a own voting bot that could be found on https://steembottracker.com? I consider to set one up for me.

@sniffbiff thank you very much for your upvote and comment. I have someone who runs the bot for me.

I see you have voted for one witness so far at https://steemit.com/~witnesses and did not make a vote for me yet! Will you please add me to your list of witness votes because your witness vote for me will help fund additional projects to grow Steem via @budgets?

Awesome post. I agree my investment in steemit and some of the other solid cryptos have grown more than my ROTH IRA over the last few months. Steempower price is a lil high than my buy up to price but after reading this post I am thinking about buying more steempower.

Thanks Jerry, i'm of the same mindset, i suck at writting great blogs as you do but i do comment allot and up-vote people that contribute like yourself. I think i actually have you as my representative.
I also buy and reinvest in STEEM, love the platform, this is one if not THE best blockchain. Specially now with DTube. Soon Twitter client and we have it all covered :D
Keep up the awesome work!

@ma8trix thank you very much for your upvote and comment, and also setting me as a proxy for witness votes at https://steemit.com/~witnesses because your vote is helping to indefinitely raise more funding for projects intended to grow our community here via @budgets!

Steemit is a community and it is awesome to see it grow, by people reinvesting into it.

@bernardino thank you very much for your upvote, resteem, and comment here.

I see you have not voted for any witnesses at https://steemit.com/~witnesses yet. Witness votes are the most important we make on Steem because witnesses create our blockchain in real time and are our chosen community leaders.

The easiest way to fully participate is to choose one person we trust as a "proxy" to make all of our witness votes for us. Will you please either add me to your witness votes or set me as a proxy at https://steemit.com/~witnesses because this will empower you to indefinitely support me for witness and increase the funding for @budgets?

Great content, and so true. Steemit is growing fast, im really looking forward to see how my work and my investment looks at the end of 2018.

Lot of great people working hard on this platform, totally worth to invest.
D.

@decomoescribir thank you very much for your upvote and nice comment.

I took a look at https://steemd.com/@decomoescribir which shows you are not voting for any witnesses yet which is normal with about only 5% of users on Steem voting for a witness. Meanwhile, witness votes are the most important we make on Steem because witnesses create our blockchain in real time and are our chosen community leaders.

The easiest way to fully participate is to choose one person we trust as a "proxy" to make all of our witness votes for us. Will you please either add me to your witness votes or set me as a proxy at https://steemit.com/~witnesses because this will empower you to indefinitely support me for witness and increase the funding for @budgets?

Hi
I need thus your support by promoting me.

I think that steam is one of the best investments around at the moment - and it is fun ;-)