I was discussing with some of the minnows in the P.A.L. Discord channel about the way payouts work and how and why to choose which payout methods and when they are best. Today I'll break down the way payouts work and what the difference is between SBD (STEEM DOLLARS) and STEEM POWER. You can actually make more or less money depending on how you choose to receive your payout. I have seen lots of tips about how to create flashy posts and how to gain a following, but I feel we still need more posts teaching the intricacies of the system and how to handle the business side of things. If you find this post useful, please resteem and share it with all of our new incoming minnows. Sometimes the waters look safe, but remember guys, you are swimming with sharks, whales, dolphins, and I think there is even a narwhal somewhere in this pond. Knowledge is power!
When you create a post, there's an option to select how to receive your rewards!
Most users assume the 50/50 split default is always the best option.
Depending on your needs that may be the case, but keep in mind there are circumstances you may not be aware of. The price of steem which is on a 1:1 ratio with STEEM POWER and the price of STEEM DOLLARS (SBD) are both flexible and while the SBD is supposed to equal $1.00 USD, this is not always the case. There are a few ways to find out the relative prices of the two tokens and make the best decision! Some users will recommend sites like https://coinmarketcap.com/ which is not a bad option at all, but we have a built in market place on steemit that many users are unaware of and allows for some good deals for the financially frugal minnows out there!
Okay, so you may be thinking at this point, "What do I care, I just want my money as fast as possible!" I get it, we all have our reasons and I won't debate them with them you. However, you should realize that the 50/50 payout default can't base both prices off the USD value. What happens is the payout you receive is based on the USD value of the STEEM token. If you follow me so far, this means that you have two tokens worth a different amount of USD being calculated on the value of one token. If the price of STEEM DOLLARS (SBD) is higher than one USD then you make more money by doing a 50/50 post! If the value of SBD is lower than one USD, then you make more money doing a 100% power up. This can also work inversely if STEEM becomes worth less than the price of SBD! It's important to know how the system works to maximize your rewards! Unless we receive a new hard fork change to the way payouts are calculated, then you need to realize the amount of tokens you receive is based on the USD price of STEEM so that you can determine what gives you the most tokens at a particular time! Hopefully this helps some of you! Namaste.