STEAM LEVEL EXPLAINED

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Who can level up their Steam Community profile?

Anyone who is not a limited users will earn a Steam level based on their account's current badges and games. You must create your Steam Community profile to view your Steam level. limited users do not qualify for Steam levels and will remain at level 0 Don't forget to read this limited users

How do I increase XP on my profile to level up?

-Purchasing games (useless)
-Earning badges
-Crafting badges (only easy way)
-Upgrading badges

what are those free badges i can earn?

Gem Maker
(Turn at least one item into Gems like trading cards,backgrounds,emotions)
Community tasks badge
Pillar of Community(Level 1 badge)-Community Ambassador(level 2 badge)-Community Leader(level 3 badge) Completed most Steam Community tasks to get these badge.

Level and XP Explained

it takes 100 XP to get to the next level. The amount needed to level up increases every 10 levels, meaning after Steam Level 10 you'll need 200XP per level, after level 20 you'll need 300XP per level, etc.
Level 1 - 100XP = +5 Friends Slots
Level 2 - 200XP = +5 Friends Slots

Level 10 - 1,000XP = Earn 1 Profile Showcase (MAX 16) +5 Friends Slots

Every 10 Levels earn 1 Profile Showcase to the max of 16 catagories as listed. Plus you can choose amoung your items what you want to showcase. That allows you plenty of flexibility to "mix it up" at any time on your Profile
check here what are showcases -> showcase

Level 11 - 1,200XP = +5 Friends Slots
Level 12 - 1,400XP = +5 Friends Slots
Level 19 - 2,800XP = +5 Friends Slots
Level 20 - 3,000XP = Earn 1 Profile Showcase (MAX 16) +5 Friends Slots
and so on

Earn XP with Crafting Badges

The fastest way to level up is with Trading Card Sets. You earn 100 XP per set you Craft into a Badge means an icon on your profile.
Trading Set of Cards can be Crafted x5 or a MAX of 500 XP to be earned.
Foil Trading Set of Cards can only be Crafted once for 100 XP.(foil are nothing different just rare)
Game Badge itself with 100 XP you'll also get:
-a random emoticon item created for this game, use in chat or discussions
-a random profile background item created for this game, use on your Steam profile
-a chance to get a discount coupon for a different game or DLC

Where to get trading cards to craft badges?

By getting games which have trading cards Just play to earn all the free Card Drops (use idle master), then you become eligible for a Booster Pack! Which is a set of 3 Trading Cards that may include both basic and foil. Booster packs are granted randomly to eligible users as more badges are crafted by others in the commmunity means the more your steam level the more you have chance to earn random booster pack.

what are those gems?

http://steamcommunity.com/id/loveno/inventory/#753_6_2764038437
Steam Gems are earned by converting the items in your steam inventory. With a value (10 -100) range per item of your Cards, Backgrounds or Emoticons. One purpose of Steam Gems is to convert items normally worthless (3 cent items) into something you can use for Gem purchases.but honestly gems are useless think before converting your stuff into gems.
What can I use Steam Gems for?
-Use gems to craft Booster Packs
-Trade for other items or sell in market

i know i missed a lot stuff but they are not to important but still if you have any questions feel free to ask here also let me know what i can include more in this thread thks .