When you transfer Steem to Steemit, you are holding it in a wallet just like any other exchange or digital wallet. Once you have transfered your Steem to your Steemit wallet, you can then choose to "Power Up" which gives you more influence over post payouts and curation rewards. I have not "Powered Down" yet and do not plan to.
You awarded with Steem Dollars (SBD) and Steem Power (SP) when people upvote your content. Once claimed, Steem Power goes directly into your node, and Steem dollars can be converted to Steem which can then be transferred off-site.
It's a bit confusing at first, but once you go through the process it isn't that difficult :)
RE: Crypto Nooby Loses Virginity...to Steem!