Steemit is a community. As a community we have the opportunity to meet new people and learn from their experiences.

Steemit is a platform. As platform we have an opportunity to be rewarded for quality content and helping others.

So if you are engaging people and writing quality content, you should be on the road to success, right? MAYBE!

Understanding Reward Payouts Is Also Important!

There are three options for reward payouts.

1. Power Up 100%

Power Up means that all of the rewards you will receive for your posts are converted into Steem Power. Steem Power is important because it increases your vote strength. The Steem Power that you have accumulated, the more you can reward others Steemit users.

2. 50/50 (Default Option)

This default option divides your rewards into 50% Steem Power and 50% SDB (which use to mean Steem Back Dollar, but now means Steem Blockchain Dollar).

SBD is a token that can be used to make purchases or pay for services.

3. Decline Payout

You can decline to receive payout for your post. This is not a common selection, but you may ran across a blogger who declines payment.

Selecting 100% Power Up Versus The 50/50 Payout Option

There are two common scenarious you need to consider.

Making Payments

You should select 50/50 payout when you need SBD to make short-term purchases or pay for services.

Powering up

When thinking about powering up, you need to consider the cost of STEEM compared to the cost SBD.

• Select 100% Power Up when the price of STEEM is strong versus SBD.

  For example, Steem is $3 Dollars and SBD is $1. If you earned $4, you reward will be converted into $4 worth of Steem Power. In this case, you will 1.333 Steem.

• Select 50/50 Payout when the price of SBD is strong versus STEEM.

  For example, SDB is $12 and Steem is $3. If you earn $4 in rewards, you will receive $2 worth of Steem Power and 2 SDB.

  Since 2 SDB is worth $24, you will be able to purchase 8 Steem (24/3), which can be converted to Steem Power.

Exchange SBD for Steem at the Market!

Right now the best place to convert SBD to Steem is in the market.

1. Open your Steemit Wallet.
2. Click on the triangle that is to the right of your Steem Dollars total.
3. Click Market.
   
4. Enter the amount of SBD that you will use to buy Steem.
   
5. Click Buy Steem.
   
6. Confirm your order.
7. Login to complete your order.
8. Go back to your Steemit wallet.
9. If you want to convert Steem into Steem power, then click on the triangle that is to the right of your Steem total and click Power Up.
   

Your Turn

Let's continue the conversation in the comments. Feel free to answer any or all of the following!

1. Did you know the difference between 100% Power Up and 50/50 Payout?
2. Have you ever complete a transaction on the Steemit market?
3. Have you ever used SBD to make a purchase or pay for a service?

I look forward to hearing from you.

@sumatranate

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Image Source: All photos are screenshots from my Steemit.com account.