The Steemit platform is a social media website powered by blockchain that rewards users with STEEM cryptocurrency, and its popularity is on the rise. This guide shows you how to buy and trade STEEM in 2020.
Where to buy Steem
Read on to find out more about STEEM and how it works or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is STEEM?
The Steemit platform is, in some respects, similar to any number of other social media platforms. The big difference is STEEM – the cryptocurrency used to reward contributors. Steemit users cast upvotes and the more visible a piece of content becomes the greater the reward offered.
The idea behind the Steemit platform and STEEM cryptocurrency was to entice users to create and share content on the site and, therefore, build a strong, engaged community. By rewarding great content with digital cash, Steemit has set itself apart from other social media platforms like Facebook and Twitter.
How does STEEM work?
If you’re looking to make a profit from STEEM there are better ways than earning it by creating and publishing content, especially if you’re just starting out. New users of the Steemit platform rarely see their posts go viral straight away and established users with more clout cast votes that carry more weight.
There are actually three versions of Steem cryptocurrency: STEEM, Steem Power and Steem Doller. However, STEEM is the only coin you can exchange for BitCoin or an equivalent currency.
How to buy STEEM online – step-by-step guide
Step 1. Get a suitable wallet
You won’t be hard pushed to find a decent wallet for your STEEM as there are loads out there. To narrow down the search, we’ve listed some of the more popular STEEM compatible wallets:
Steemit Wallet: If you’re a regular on the Steemit platform it makes sense to use the Steemit Wallet, but there are better wallets out there.
Vessel: This desktop client is compatible with macOS, Windows and Linux and has everything you need when storing STEEM on your pc or laptop.
ESteem: If you’re looking for a mobile app, then look no further than ESteem. It works on both iOS and Android and is one of the easier to use STEEM wallet apps we looked at.
Step 2. Find a STEEM exchange
If you don’t have the time or energy to produce content for the Steem platform, there’s a handy shortcut to owning STEEM – simply visit an exchange and buy it. There are quite a few exchanges out there, so we’ve listed some of the more popular ones:
Binance: You can trade over one-hundred different cryptocurrencies on Binance so it’s a great place to start when you’re looking to buy STEEM
HitBTC: This European exchange has been around since 2013, so you can rest assured it’s a secure place to pick up your STEEM.
Step 3. Withdraw your STEEM
When you’ve decided on an exchange and acquired your STEEM, it’s a good idea to withdraw it and keep it in your wallet where it will be more secure.
How to trade STEEM – step-by-step guide
If you only want to go down the trading route you don’t need to bother sourcing a wallet as you won’t actually be buying and withdrawing currency.
Step 1. Find a broker
The first step on the road to trading is to find a broker. There are a number of brokers that specialise in trading cryptocurrencies, but two of the biggest players right now are eToro and Plus500.
Step 2. Deposit money
The next step is to deposit some funds, so you’ll have something to get started with. Whichever broker you choose, you can expect there to be a minimum deposit requirement. Fortunately, it’s never a bank-breaking sum.
Step 3. Decide how you’d like to trade
There are two main ways you can trade cryptocurrencies – spread betting and CFDs (contracts for difference). Both of which involve predicting whether the price of your chosen cryptocurrency will rise or fall during a set timescale. If you’re not sure what the difference is, it might be worth doing some more research on spreads and CFDs.
Step 4. Start trading
When you open up an account with a broker you’ll see there’s an option to start with a demo version. If you’re new to the game, it’s well worth having a look around using the demo. This will help you get a feel for the platform and build your understanding of cryptocurrency trading, without risking your cash.
When you’re confident and you know what you’re doing, you can open up the live account and start trading for real but do remember that the value of cryptocurrency can rise and fall extremely quickly.
The idea behind trading is fairly simple – all you need to do is take a position on whether the value of your currency will increase or decrease. If you think it will increase, go long (buy) and if you think it will decrease, go short (sell).
You may choose to incorporate leverage into your trading strategy. Leveraged trading allows you to put up a fraction of the trade’s value as a deposit or ‘margin’. This can be risky, though, so make sure you have a stop loss in place for damage limitation.