Many new users on STeemit want to know the difference between the Steem, Steem Power and Steem Dollar. Here a comprehensive explaination of the 3.
Steem: This is the currency that powers Steemit. It is a cryptocurrency traded on the coin market like bitcoin and others. When your earnings for any post is paid out, you receive a protion of it as Steem. Steem is liquid. This simply means that you can exchange it for other coins like bitcoin or convert it to your local currency. Like all cryptocurrencies, the value of Steem is not stable. It goes up or down depending on coin market conditions at any given time.
Steem Power: A portion of your earnings are paid as Steem Power. Steem Power which is derived from Steem, determines the weight of your account and your influence on the platform. For example, when you upvote a post, how much the post earns is determined by the amount of Steem Power you have. Also, when money is shared to all those that voted for a post, how much you earn is determined by the Steem Power too. The bigger your Steem Power, the bigger your votes, earnings and influence on the platform. Because Steem determines your influence on the network, to withdraw all your Steem Power takes 13 weeks. That means if you have 1000 Steem Power and you want to withdraw all, this money will be divided by 13 and paid to you every week till the 13 weeks are complete. To withdraw your Steem Power is called Powering Down.
Steem-Based Dollar(SBD): Cryptocurrencies are usually volatile in nature. That is, their value is not stable. They go up and down frequently depending on market conditions. SBD was designed to make the value of Steem a bit more stable. So the value of SBD is pegged to be or close $1 especially when the value of Steem is less than $1. SBD is a currency of its own and can be traded on the open market.
So in conclusion, when your posts pays out, your receive some as Steem, Steem Power and SBD. Steem and SBD can be traded, exchanged to physical cash or be transfered to another user. Steem Power takes 13 weeks to be withdrawn or powered down.