Steem is a cryptocurrency used to power the Steemit platform – an incentivized social media platform built on Steem blockchain. The platform is very similar to Reddit or Hackernews, but the only difference is that it rewards the users for curating content.
So in a nutshell, the users of the site, aka “Steemians”, post original content, interesting links, questions, and get rewarded in Steem for their work based on a voting system.
Steem is the fundamental unit of account on the Steem blockchain. All other units (Steem dollars and Steem power) derive their value from the value of Steem.
Steem Dollars, valued at 1:1 with the US dollar, are a unit used to represent a short-term debt. Holding Steem Dollars is described in Steem’s whitepaper as a way of lending the community the value of one US dollar, which is designed to foster growth.
Steem Power (SP) is a token symbolizing how much power you have inside the Steemit platform. When you have more SP, your votes carry more weight in the system. If you don’t have SP, you’re not allowed to vote. Increasing your SP is known as “powering up” and decreasing it is known as “powering down”.
Users can power down by converting their SP into Steem. Although, this can only be done over a period of 2 years in order to make sure that users don’t just cash out quickly and collapse the whole Steemit economy.
How to buy Steem?
The developers of Steem were able to mine a huge portion of the total Steem supply due to the relative complexity of the mining process at launch. The fairness of the process has been a matter of debate.
There are two primary ways to get Steem; either buy it or earn it. Buying Steem is the fastest way to acquire this cryptocurrency. If you want to earn Steem, you will need to engage with Steemit community, post content regularly, comment, share, and network. The more valuable contributions you make, the more STEEM you should earn.
Step 1: Get a Steem wallet
You can store Steem on Steemit website since the whole platform is a web wallet. Otherwise, here is a third party Steem wallet.
Step 2: Buy Steem from an exchange
Steem is trading for $1.04 a piece and has a market cap of $256 million.
How to buy Steem using fiat in any country
At the time of writing, there is no exchange that supports buying of Steem with fiat.
2. Buy Steem using Bitcoin
The only way to buy Steem is through Bitcoin. Exchanges that support STEEM/BTC pair:
Step 3: Withdraw Steem to your wallet
After the purchase of Steem, it’s always wise to transfer them to your personal Steem wallet in order to stay protected from malicious attacks.