How To Buy Steem | Ultimate Guide To Buy STEEM
The Steemit platform launched by Ned Scott and Dan Larimer in 2016 is the first social media app on the blockchain. The Steem blockchain ensures that content creators and curators get STEEM rewards based on the value they add to the app.
The Steem (STEEM) price is $0.753238 as of writing, with $16,567,671 in intraday trading volume. Are you looking for the best exchange or broker platform from where to buy Steem? In this guide, we take a closer look at how you can buy Steem online in 2021
5 Steps to Buy Steem with eToro Now
Buying any cryptocurrency with eToro is easy, simply follow the steps below:
1Sign up for free with eToro, entering your details in the required fields.
2Fill out the questionnaire, this is both educational for you and eToro.
3Click 'Deposit', you'll then be asked how you want to fund your account.
4Choose your required payment method, follow the simple steps to link your payment.
5Enter the amount you want to deposit and you're good to go!
Our Recommended Platform to Buy Steem
Individuals who are new to cryptocurrency trading or the Steem token will benefit a lot if they read this guide to the end. However, if you are an expert and are ready to start buying the digital currency, you might choose to jump straight in. We’ve reviewed several brokerage platforms and exchanges to make your work easy. You can find our top picks below. Choose one that suits your needs.
Where to Buy Steem in 2021
You can buy Steem from various platforms, including leading exchanges and brokers. However, it would help if you didn’t hold the coins for an extended period since the supply increases by 100% each year. This makes Steem highly volatile. However, as mentioned above, if you want to invest in the coin, you can convert it to Steem Dollar. Each of them represents an amount of STEEM equal to USD 1.
Let’s remember that your trading strategy should be able to determine where you should purchase STEEM. If you have a short-term strategy, brokerage platforms are an ideal option. They give you the chance to enter into Contract for Differences (CFDs), a highly lucrative way of making money for experienced traders. These contracts allow you to trade on the volatility of your currency. Since Steem is incredibly volatile, you can trade on extreme price movements without owning the digital currency.
Suppose you are optimistic about STEEM’s ability to increase in value in the long term. In that case, you should consider buying it from one of the best cryptocurrency exchanges that meet your needs. Due to the volatility of crypto, you should store the coins in the form of Steem Dollars, which can be stored safely in a secure and compatible cryptocurrency wallet.
It’s important to note that purchasing and holding Steem requires extensive research on the best ways to set up wallets and online security. It would help if you cared about the coin’s volatility and the protection your trading platform offers.
How to Buy Steem with a Broker
Since you need the best trading experience, ensure you choose the best online broker for buying Steem. Fees and security are some of the most important considerations. They typically vary from one brokerage platform to another and can make a significant difference on your bottom line. Compare the costs and choose the most competitive one. Don’t forget that the best rates shouldn’t eat too much into your profits. Besides, it shouldn’t leave you exposed to loss and different forms of security threats.
Most secure brokerage platforms faithfully implement regulatory standards. During the registration stage, they verify the identity of the applicants. The platforms also have in-built security encryption, which protects private information from unauthorised access. Here are the steps you should follow once you have found the right brokerage platform:
1. Register with the Broker
You won’t need to do a lot to be able to complete this stage successfully. Most brokers require your personal information and your email and telephone number. You’ll also need to confirm the ownership of the emails address. Nonetheless, brokerages have different user registration policies, so you are likely to encounter some minor differences. Let’s illustrate this below.
If you choose Forex.com, you’ll have four different account options to choose from during registration. Once you do that, you’ll be able to proceed to the registration form. Here, you’ll be asked to provide your personal information and contact information. Moreover, you’ll need to create a unique user name and a strong password.
You’ll notice some differences if you select Pepperstone. Here, you don’t have account options. Once you land on the home page, you click on ‘Get Started’ and move straight to the registration form. The platform will ask you to provide your personal information and contact details. You’ll also be required to create a user name and a unique password. You then proceed to the next stage, as shown in the image below.
2. Verify your Identity (KYC Process)
This is perhaps the most crucial step since it focuses on enhancing the platform’s safety. It’s relatively new. Since the inception of crypto, many stakeholders thought that privacy and anonymity count more than anything else. However, the prevalence of security incidents in the sector proved otherwise, leading to the introduction of Know Your Customer (KYC) registration requirements.
3. Deposit Funds with your Preferred Payment Method
Once the broker has approved your application, you are free to deposit funds. To do so, ensure you choose and use the most appropriate payment method. If you navigate to the payments sections, you’ll find the list of alternatives that the platform supports. Of course, you can gather this information before you start the registration process.
Whichever way you approach this issue, you should ensure the platform supports your preferred payment method. You can choose another one if need be. However, you should never compromise on cost and speed. As a trader, you want to minimize all the costs to reduce your gross profit beyond the recommended limit. Besides, since STEEM is highly volatile, you want the fastest payment method to take advantage of the slightest price swings.
Another aspect to take note of is safety. While most payment methods are secure, some criminals can infect your computer with viruses to record your payment information and use them to access your bank accounts and achieve other mischievous goals. You can limit this risk by installing the right antivirus software on your computer and mobile devices.
Once you’ve chosen the suitable payment method, proceed to make the transaction. After that, check your account balance to confirm whether the account has been funded. If everything is fine, move on to the next step.
4. Open a Position to Long/Short Steem
You can now open a trading position depending on the projected price of STEEM. If you consider that it will reduce during the trading period, you should short the token. This means you trade with leverage. Once the price drops, you repurchase the coins to pay the platform. This strategy allows you to trade without investing your own money. However, if the price shoots up before you close the trade, you will likely make losses.
You long Steem if you are expecting the price to increase in the future. This involves buying Steem and holding it for an extended period to be able to make a profit. In this case, you trade without leverage. Trading for an extended period comes with lots of risks due to the uncertainty of STEEM’s value. However, you can mitigate loss since you own the underlying asset.
5. Close Your Position
Setting the risk management limits can determine when you should close the trading position. However, there are times when you can close early. For example, you may not need to continue relying on this feature when you have made enough money. You may also act to prevent losses before the stop loss/take profit feature closes the trading position.
How to Buy Steem with an Exchange
As already indicated, there are times when you need to buy Steem with an exchange, not a broker. One of such moments is when you want to long the digital currency. To increase your chances of success, you should evaluate how much the service costs and the safety of your funds. Remember, exchanges are in the business of making money and charge varying prices depending on a wide variety of reasons.
To find the best deal, you should compare the cost that different exchanges charge. Consider all the hidden costs while computing this. At the same time, evaluate the platform’s preparedness to deal with various security situations. One of the ways to do this is to find out whether the exchange is regulatory compliant. They should also have in-built security encryption that protects your data from unauthorized access. Once you are happy with your choice, you can start setting up your wallet.
1. Set up a Steem Wallet
Since you’ll need to withdraw your coins from the exchange to a secure wallet, start by choosing and setting up a compatible Steem wallet. This process might seem complicated. However, once you understand the various categories of wallets that we have and their basic features, you’ll find it simple enough. Let’s take a look at the options you have and what sets them apart.
Exchange/Online wallets: Steem exchanges have built-in wallets that can serve some of your trading needs. In the past, these wallets were the primary target of hacks. Many users of these platforms lost lots of money, which gave the wallets a bad reputation. Today, many exchanges have upped their game and sealed the security loopholes. So, you can use them to store your coins. However, we recommend that you use them for short durations.
Desktop/Mobile wallets: These apps are designed to store your Steem coins online. To use them, you must have access to your private key. They have a better reputation than their counterparts mentioned above.
Cold wallets: These wallets are known as cold since they store your funds in an offline environment. Others also refer to them as hardware wallets since they are physical devices. The hardware wallets are regarded as the safest alternative since they use advanced security features such as hardware chips and protocols.
2. Choose and Join and Exchange that Sells Steem
Due to the viability of Steem, many exchanges sell it, so you are spoilt for choice. Some of the leading exchanges that offer the coin are Binance, BiONE, MXC.COM, Bittrex, Poloniex and Huobi Global. As we mentioned earlier, each of these platforms has some unique features. So, you should use the tips we learned above to choose the one that suits you best. Remember, it’s safe to give priority to regulated exchanges.
3. Choose Your Payment Method to Buy Steem
You now need to choose the payment method that you need to be able to pay for Steam. Direct payments from credit cards are a viable option.
Your credit card empowers you to borrow money from the issuer when you want to buy the digital currency. It’s a great way of keeping cash transactions to a minimum. However, some holders of the plastic use it irresponsibly and end up in debt. Given the price movements of STEEM, it’s better to carefully weigh your options before opting to pay for the coin using the card.
If you want to avoid debt, you can use a debit card. It offers all the benefits of a credit card but helps you to manage your expenditure. Nevertheless, it might not be the best option if you need to buy Steem urgently but don’t have cash in the bank.
Bank transfers work almost like debit cards. However, you have to add your bank account details to the exchange account. Once that is done, you can conveniently access fiat currency. This way, if your exchange accepts fiat currencies that your bank supports, you’ll spend less time buying Steem and create the desired trading positions.
The use of cryptos like Bitcoin and Litecoin to pay for Steem is also prevalent today. Since most cryptocurrency exchanges support multiple cryptos, this makes it easier to buy and sell STEEM. Nonetheless, if you depend on digital currencies as a mode of payment, you must be more prepared to deal with the challenges related to volatility.
4. Place an Order to Buy STEEM
The process for placing an order to buy Steem is simple. It may differ slightly depending on your chosen exchange. Let’s use Binance to explain how the process looks like.
Assume you’ve funded your Binance account with ETH or BTC and confirmed your balance by going to Funds and then Balances. The exchange has processed your deposit, and it appears on the list. Here’s how you can place the order to buy Steem:
1. Go to Exchange and then click on Select on the right top corner and search for STEEM.
2. Wait for the trading pair to appear and click on it.
3. Place your buy order under the price chart.
If you want to buy STEEM when its price hits a given price, use the Limit Order. In this case, you will do the following:
1. Enter the desired price of BTC/ETH
2. Enter the amount you want to buy
3. Click on Buy STEEM
5. Safely Storing your Steem in a Wallet
Once you purchase STEEM, you can withdraw it from the exchange to your private wallet. This typically involves doing the following:
1. Input your STEEM wallet address into the recipient address field.
2. Indicate the amount of Steem you would like to transfer.
3. Click on the withdrawal request button.
Please note that this step is optional. If you have a short-term strategy in mind, you can store the coins in the exchange’s in-built wallet. However, if you want to long STEEM, it’s safer to get a private wallet and implement the above steps.
Should you Buy or Trade Steem?
Your needs should help you determine whether you should buy Steem in an exchange or professional brokerage platform. Your strategy will also influence which of these trading platforms best suits you. So, you need to be clear on your requirements and needs to make the right decision. If you wish to buy Steem, go for an exchange and for trading purposes, a broker is the better choice.
As noted earlier, STEEM is tradable on the open market. However, they are highly volatile. To minimise that, you can convert the tokens to STEEM Dollar. Besides, to increase your stake on the platform, you can convert the coins to STEEM Power.
What’s the Difference Between a Steem Exchange and a Broker?
If you decide to short STEEM, you’ll need a brokerage platform. They allow you to enter into agreements such as Contract for Differences, where you can earn passive income irrespective of the price trend. All you need to do is accurately predict the future price and base the contract on the prediction. This approach is excellent for traders who don’t want to get involved in setting up wallets. However, it isn’t the best for beginners.
Exchanges allow you to buy and trade STEEM for an extended period. Due to security reasons, you should be prepared to choose suitable private wallets where you’ll store the coins. Besides, they give you opportunities to expand your portfolio.
Steem: Long Vs Short Term Investment
We’ve mentioned that you’ll need to choose either short or long term trade, depending on your trading strategy. Long-term trade generally refers to investing in Steem for one year and above. Short-term investment refers to trading the coin for less than one year. It determines whether you should trade through an exchange or broker.
3 Tips to Buy Steem
Now that you know how to choose the ideal trading strategy and buy and trade Steem, you are almost ready to start selling Steem. Before you proceed, remember that you can achieve your goal faster if you know insider tips. Here are three that you shouldn’t forget:
1. Choose the Right Time and Do Your Own Research on Steem
Steem is highly volatile, so your ability to choose the right trading time is vital for your success. The only way to choose the right time is to rely on objective research findings. This means you should seek the advice of multiple experienced traders and conduct in-depth technical analysis. With the information, you can choose the best time to buy and trade the cryptocurrency and limit loss.
2. Compare Costs to Buy Steem
It’s essential to note down that different trading platforms set varying service fees. The difference doesn’t necessarily translate to improved service. You should consider the costs applied to your fiat currency, any fixed charges, and the likes. This allows you to compare the real-world value of the service costs and make a prudent decision.
3. Safety and Security when Buying Steem
We’ve mentioned this over and over for a good reason. It’s perhaps the most crucial determinant of your trading success. Your chosen trading platform should be regulatory compliant and incorporate any other additional security features that you need. The idea is to ensure that your coin and personal data is in the right hands.
What is the Best Payment Method to Buy Steem?
- Buy Steem with Cash: Find a seller on a P2P and pay with Cash.
- Buy Steem with Credit Card: Buy crypto anywhere with Visa or Mastercard.
- Buy Steem with Bank Transfer: Low cost and highly convenient way to buy digital assets.
- Buy STEEM with Bitcoin: BTC is the dominant crypto.
- Buy Steem with Paypal: Fast and easy, but restricted in some jurisdictions.
Other Ways to Buy Steem
There are several ways of purchasing Steem tokens, Steem Dollars (SBD), and Steem Power. You can also convert them to fiat currencies through crypto exchanges. Moreover, you can trade STEEM for Bitcoin, Ethereum and other cryptos. Peer-to-peer platforms also offer this service.
You can also earn a Steem token by participating in the creation of the coins. The Steem blockchain doesn’t rely on the Proof of Work protocol to create new coins. Instead, it uses delegated Proof of Stake, which means it delegates witnesses to create a block after every three seconds. If you are a witness, the system will reward you with Steem Power for every block made.
You can also be a content creator on the Steemit platform and qualify to earn 75% of created coins. If you have Steem Power holdings, you’ll also get 15% of newly created coins. Witnesses receive the remaining 10%. With a live market cap of over $206,600,000 Steem remains a viable crypto, and you can take advantage of the many ways to create, buy, sell, or trade it.
Now you have it. You know how Steem works, how to earn it, and how to buy and trade it. You can also choose the right trading platforms. So, you can conduct your independent research to determine when you should start trading Steem coins.
Frequently Asked Questions
No regulators or legal bodies have singled out Steem for any reason. So, if cryptos are legal in your residence, you likely have the right to buy STEEM in your location.
Yes. Most reputed platforms will insist on KYC. It helps in reducing the risk of fraud for all users.
No, Steem is one of the most volatile cryptos. You can convert them to Steem Dollar to minimise the fluctuation.
Binance, Huobi Global, Upbit, BiONE, and MXC.COM are some of the leading exchanges that sell STEEM and Steem Dollars.
Bitcoin and Ethereum. Some exchanges require you to trade your crypto for BTC or ETH to get STEEM or Steem Dollars. Others provide a wide range of trading pairs.