Steem is the cryptocurrency used for social media whose value grew by more than 1000% between its inception and the close of 2017. As the potential of Steem continues to increase, this could be one of the top investment opportunities for you.
This review takes a deeper look into Steem and will establish what it is and how it works. The Steemit design of using multiple coins in the same network has become the new design shaping the industry.
In this review, we seek to answer the key questions about Steem that will help you make the bold move of investing in the platform’s native coins. Whether you have been wondering if Steem is safe to use, or about how to buy Steem amongst other concerns, you have come to the right place.
What is Steem?
Steem is the primary cryptocurrency used for powering the Steemit platform – an incentivized social media platform built on Blockchain technology. Users of the Steemit platform create and curate content the same way they do on other platforms such as Hacker News or Reddit, the difference being that they get rewarded using Steem.
Steem bears resemblance with Bitcoin in that it is fully decentralized and based on Blockchain technology. However, it differs fundamentally because it is targeted at social media while Bitcoin was created as a peer2peer exchange currency.
While many social media platforms employ systems such as upvotes, likes, and shares to help prioritize content, Steemit combines these concepts and makes them a unique Blockchain-based platform that rewards its contributors using Steem.
The ultimate effect of the Steemit platform is that publishers will be motivated to craft better content, while the platform’s readers will also be rewarded for discovering great content. This is a win-win situation for all, which could easily propel Steemit well ahead of its social media competitors such as Facebook and Google+.
Before exploring how and where to buy Steem coin, it is important to appreciate that Steem operates together with other coins on the Steemit platform.
- Steem: This is the base cryptocurrency of the network which can be traded on exchanges the same way other coins such as ETH and XRP operate. Indeed, you can even use it to make purchases in certain stores that accept Steem.
- Steem Power: To upvote or downvote content or publishers, you will need to use another coin referred to as Steem Power. This coin is important because it helps one have a greater influence on the content in the Steemit platform.
- Steem Dollars: This coin was designed to address the problem of high volatility in the market. The coin’s value is pegged to the USD at a ratio of 1 Steem Dollar:1 US Dollar. Many people prefer it, especially when they want to protect their funds from third-party seizures.
Steem: A 4.0-Rated Digital Coin
As more people and businesses adopt Blockchain technology, the focus has shifted to extending the technology to non-financial sectors. Steem has won the hearts of the community for its unique design, especially in using many different tokens on the same platform.
The high rating also stems from its good performance in the markets and the commitment of its development team to progressively improve the system over time. Note that even though Steem is directed at social media, the native coins can still be used to make purchases in certain markets and to trade on cryptocurrency exchanges.
The strategy to use Steem Dollar as one of Steemit’s coins has won admiration and a high rating by the community. So, if you want to save money or invest without worrying about high price volatility, simply lock your funds with Steem Dollars.
Though the community and Blockchain experts have expressed their belief that the value of Steem is likely to grow in the coming years, it is important to understand that this is largely pegged on speculation. Therefore, it is important to include other factors such as the threat of looming regulations, as well as competition to establish the direction that the price will take in the future.
What You will need Before Buying Steem
Before placing the order to buy Steem, it is important to look for the right Steem wallet. This is the software or hardware, that will help you store your coins once the purchase process is over. The focus should be on picking a wallet that is secure, easy-to-use, and reliable, for receiving and sending Steem coins.
- The Steem wallet: This is the most recommended wallet for storing your Steem coins. It allows users to integrate with the entire Steemit platform for easy management of their Steem coins.
- Vessel wallet: This is a desktop wallet designed to help people store and use the Steem wallet. The Vessel wallet, like the Steem wallet, is designed to help make upvoting or downvoting content on Steemit easy and fast.
How to Buy Steem Coin
Steem, like other cryptocurrencies such as Bitcoin and ETH, can be bought from exchanges. These are centralized platforms that require users to create an account and deposit the funds they want to use to buy Steem.
- Select the Exchange of Choice
The first step in selecting where to buy steem coin is picking an exchange that lists Steem. At this point, it is also important to understand that exchanges have become easy points of attack for hackers. In January 2018, for example, Coincheck was hacked and over $500 million worth of digital coins were stolen.
Other factors to consider when selecting an exchange to use include:
- The exchange should have low transaction fees so that you do not lose a lot of funds paying for your transactions
- Look for a trading platform that has a good reputation in the cryptocurrency community
- The selected exchange should have an easy to use the platform to make buying Steem easy and fast
- Only use an exchange that allows users to move their crypto coins to their wallets immediately after purchase
- The customer support of the selected exchange should be highly effective in addressing clients’ issues
- Only pick an exchange that operates within your jurisdiction. This is important to avoid placing funds into an account only to find out that it is impossible to use the account.
- Open and Verify a User Account with your Selected Exchange
As centralized trading platforms, you are required to open a user account first. This can be done by visiting the selected exchange’s website and navigating to the create new account page.
Once the account has been created, you will be required to verify it with additional personal information. This requirement is implemented in line with the anti-money laundering (AML) and KYC (know your customer) requirements in the jurisdictions the exchange is located in.
Notably, the verification information will vary depending on the exchange of your choice. For example, some exchanges, like Bittrex, will require users to add phone numbers, while others will ask for date of birth and proof of location.
- Fund the Account and Select the Preferred Currency Pair
Note that some of the exchanges in the market such as Binance and KuCoin only support cryptocurrency deposits.
If you want to use fiat currency via wire transfer or credit card, a different exchange such as Changelly and Coinswitch might be more preferable.
Once the funds are in the account, select an appropriate trading pair. If you deposited USD, the cryptocurrency pair you choose should be Steem/USD while a person with Bitcoin would select Steem/BTC.
At this point, it is also important to check the transaction fees of the exchange. For example, those using Binance should expect to pay a transaction fee of 0.1%. However, there are some ways to enjoy a discount of 25% on the transaction fee.
- Execute the Buy Order and Withdraw Steem to your Wallet
With the right trading pairs selected, take a last glance to confirm that everything is okay, and then, execute the order. The Steem coins will then be deposited into the user’s account.
Like we pointed out above, exchanges are at a high risk of being attacked by hackers. Therefore, you should never leave your Steem coins there; you need to withdraw them to your wallet.
The Final Take
This review has established that Steem has a lot of potential because of its diverse applications. By targeting a fast-growing industry, social media users are sure of enjoying faster growth in the coming years.
If you have had the question, “Is Steem a scam?”, this review established that it is indeed legit. The project was created by cryptocurrency enthusiasts, who are not only interested in seeing the Steemit platform grow but also want to see the entire Blockchain industry grow.
The outlined methods of purchasing Steem will help you buy their coins easily and at a lower rate. Just remember to move your coins to your wallet immediately after the purchase to keep them safe.