Hi @shadowgem maybe I can give you a little help ;) I don't think it's possible know to use colors fonts don't forget Steemit is also in beta.
When you write your story you have 2 choices editor or markdown you have to choose one for a few days it's not possible to switch between the two  into a story.
When you are on the editor mode you can't see the preview and you have option above for *italic* **bold** etc... Editor don't support markdown.
When you are in [markdown](https://guides.github.com/features/mastering-markdown/) you have to use * and # like you said and you can use a little bit of html too. And see the preview ;)
If you want to make a link use [yourlinkname]+(intenetLink) without the "+" and no space.
I use [imgsafe.org](https://imgsafe.org/) to host my pictures when it's done I just have to copy/paste the link after upload.
If you want to center your pictures you can use < center > imagelink < /center > (without the space for < center > and other too at the end dont forget the /)
<code>you can use</code> < code > your text  < /code > (without space)
For embed link (for video) use youtube when you upload your video clik share under the video and you can find the embed link.
I hope I help you ;) sorry for my english (not my language) if you have any question ask me and welcome on Steemit!
@pickoum