What are Steem Dollars? What Does SBD Do?
What are Steem Dollars? Steem Dollars (SBD) is a stablecoin used within the blockchain-based social media platform Steem.
What are Steem Dollars? Steem Dollars (SBD) is a stablecoin used within the blockchain-based social media platform Steem. As Coinzigzag.com we will review Steem Dollars in this article. In addition, we will also answer questions such as what is Steem, what is Steem Dollars, what is SBD, and how to buy it, which is the subject of curiosity among investors. Now let's examine this USD-indexed cryptocurrency together.
What is Steem?
Steem is a community-focused Blockchain network that offers instant earning opportunities for network users. This network is designed to provide customers with an opportunity to earn based on their value on the platform. For this, it basically serves as a social media platform. It provides a platform for users to post their creations online and receive payments in the form of cryptocurrencies. At this point, interaction is essential to profit. On the platform, users interact with other users through their content. In return, it receives rewards in the form of cryptocurrencies.
What are Steem Dollars (SBD)?
The Steem ecosystem has two cryptocurrencies, both STEEM and Steem Dollars (SBD). The first asset is the utility token of the platform. The second and the subject of this article, SBD, is a stablecoin. Accordingly, the price of the cryptocurrency follows the US dollar at a ratio of 1:1. Within the ecosystem, users can store value through this cryptocurrency. Stablecoins are much less volatile as they are tied to real world assets like fiat currencies. At this point, the social media platform aims to provide a safe investment environment to its users with the stability of Steem Dollars.
What does SBD do?
Steem is a blockchain-based social media application. This app has its own decentralized economy, which is managed by three tokens. Accordingly, SBD has several use cases as a dollar-pegged stablecoin. Users can convert Steem Dollars tokens to STEEM, a cryptocurrency. This conversion process takes 3.5 days. In other words, users can secure their investments in STEEM during periods of high volatility and, on the contrary, earn high profits. The main use cases are:
- Convert to STEEM via your wallet (takes 3.5 days),
- Swap to STEEM in the domestic market,
- Withdraw funds to an exchange and trade BTC or other cryptocurrencies,
- Buy items from third-party stores that accept SBD tokens.
What are Steem Dollars? How to buy SBD?
Steem Dollars is traded on Upbit, HitBTC, Bittrex, GOPAX and PancakeSwap exchanges. For this reason, interested investors should be a member of these exchanges and follow the purchase steps in order to purchase SBD.