What is the best way to invest in Steem for the long term?
Hi guys!
So, I am writing this to hopefully get an opinion from the more savvy or experienced Steem investors and powerusers.
Why Steemit ?
I am interested in cryptocurrencies in general, and Steem in particular, because Steem has:
- An active social network
- A relatively large number of users which other altcoins don’t have
- Incentives for writing quality content
- Incentives for distributing / popularizing quality content
- Incentives for investing in Steem / Crypto for the long-term and not mindless trading on day to day price fluctuations
- Given all the above, it seems to be greatly underpriced
Current Approach
I am new to the site, but I am considering investing a certain amount every month, or at least every other month. Everything I have invested so far is in Steem Power. I also selected 100% power up when writing posts, so I currently have 0 Steem, and only Steem Power and SBD.
Information on Powering Up and Powering Down
As far as I understand this, if I do not choose to power down at all, those funds will be blocked until I start the power down process, at which point I get 1/104th of the SP amount converted to Steem every week.
I have read a few articles on the benefits of powering up, including this one , and plan to use this as the main strategy. However, I would also like to get a bit of liquidity in STEEM. So, to that end, I have found this article where the author suggests that restarting a power down process every week is a good way to get some STEEM, while still maintaining many of the benefits of STEEM POWER – growth will be slightly impacted, but not that much as you restart the power down process. More information about the power down process is also available here.
Advice?
Provided that I also plan to add STEEM POWER every month or every other month from personal funds, do you think this is a good strategy (that way the total amount of SP will grow anyway)? Any input will be greatly appreciated. Thanks!
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STOPwhen you power down you get 1/13 of your Steem Power each week. Unless you actually need the funds, I would suggest power up all you can and build your SP up on the site.
The last few days we're seeing a drop in STEEM price which is an excellent time to buy in and power it up.
Could you please give some further details on the 1/13 of SP you get if you power down during a week? I thought you can only power down 1/104th of your SP per week, so that it takes two years to completely remove the funds from the Steemit platform.
In the original whitepaper and indeed for several months on Steemit you could only power down 1/104th of your account. In one of the Hardforks, memory deserts me which one, that was changed to 13 weeks. That allowed people who had decided that Steemit wasn't for them to divest themselves sooner.
If you check the @steemitblog you should be able to find a recently updated whitepaper which should reflect the 13 weeks rather than the 104 weeks in the original whitepaper.
Thanks for the information, this is interesting. In the updated whitepaper they say:
"In the cryptocurrency space, speculators jump from cryptocurrency to cryptocurrency based mostly on
which one is expected to have short-term growth. Steem wants to build a community that is mostly owned
and entirely controlled by those with a long-term perspective.
Users are able to commit their STEEM to a thirteen week vesting schedule, providing them with
additional benefits within the platform. STEEM that has been committed to a thirteen week vesting
schedule is called Steem Power (SP). SP balances are non-transferrable and non-divisible except via the
automatically recurring conversion requests. This means that SP cannot be easily traded on
cryptocurrency exchanges."
This move seems a bit curious to me as a 13 week vesting period is far shorter than the previous 104 week vesting period. It is basically down to about 3 months. So the 1-week power down strategy doesn't really make that much sense anymore.
If anyone else is curious about this and wants to read more, here is the link to the whitepaper: https://steemit.com/steem/@steemitblog/a-radically-updated-steem-whitepaper and also something they are calling a bluepaper: https://steemit.com/steem/@steemitblog/announcing-the-steem-bluepaper
I think the one week power down period has a value from a long-term investment prospect.
In another life I did insolvency counselling with clients dealing with financial issues. One of the tongue in cheek suggestions I used to make to clients when they got a credit card back in orderto rebuild their credit was to place the card in a bowl of water and place it in the freezer. When they wanted to spend using the card they would then have to wait for it to thaw which would give them time to reconsider the necessity of the expenditure.
The one week power down provides that cooling off period to think about the withdrawal.
As for changing the period to fully power down, it became clear that for investors who wanted or might want to draw down their investment, two years was too long to tie their money down. Thirteen weeks was a more workable commitment.
Least from the discussions I've seen, that is my take.
It seems like investing your money each month is a good idea if things take off.
Maybe look at it from another angle as well, that is tell as many people as you can, I think that if more people get on it and use it that will increase the value far beyond just putting money into it. You will be investing in yourself and the community. So invest time in it, support others and help each other grow.
Yes, that would also work to Steem's advantage. Do you have any specific / actionable tips or ideas on how to promote Steemit?
You can only tell so many people you know personally or are on your Facebook. Of course, one way would be to write posts here, since they also get ranked organically by Google, and this will help Steemit a lot in the long run, as Steemit posts will be near the top of search results.
There was a guy (in Norway I think) who actually made up a Steemit desk and flyers, he went around talking to people on the street. He made a post here but I forget where it was.
There are a few guys who are going to do a Steemit car rally in Portugal.
I am going to do a video for begginers later on, for youtube, I don't have many followers there so it probably won't get much attention, but its what I can do at the moment.
There are guys in Africa who are doing steemit talks for the local community and getting each other onboard.
https://steemit.com/steemit/@papa-pepper/represent-finally-my-own-steem-mobile this guy made some logos for his car so thats a good idea to get more exposure.
I would like to do a talk in my local community on it as well to get more people interested.
The sky is the limit whatever you can come up with, good luck.
Thanks for these ideas. Yes, I think youtube may have the most potential to reach the greatest number of people, provided that you can get a decent following on the website.
I think powering down below 1,000 STEEM Power does not make any sense. Try to reach 1k STEEM Power first, then plan further. Getting that first stage takes quite some time already unless you are willing to put in own funds.
I agree that it may not make sense to go below 1000 STEEM, but as I said, not only am I willing to put in own funds, but I am planning to do that almost every month, so even if I use a 1 week power down, my overall STEEM POWER will grow (it will also grow by itself anyway, due to the compound interest, even though at a slightly lower rate than it would with no power down at all).
i invested about 10 dollars in steem until now
@avrdan , I think the best is to earn steem power, so every day your votes count more. I just upvoted you. @gold84