Staking Hive Earns You 12-14% APR – HBD Earns You 12% APR
For Hive users, it can be a difficult decision whether to keep their money in HIVE or buy HBD and stake it. Whenever the market becomes bearish, investors often become confused and look for a safer place to keep their investments.
Hive users have two good options right now...
Convert their investment into HIVE and power it up. This can earn around 11–13% APR through curation rewards.
Buy and stake HBD, Hive's stablecoin. Its APR was recently adjusted to 12%.
At first glance both options offer almost the same earnings but there are some important differences. You need to know.
The biggest difference is that HIVE is a volatile coin. Its price can go up or down significantly. It recently dropped from around $0.09 to about $0.05 which is around 90% drop.
It can also experience future pumps and dumps. This means that if you invest in HIVE, your capital is exposed to price changes. You may benefit from price appreciation but you can also suffer losses if the price falls.
On the other hand HBD is a stablecoin within the Hive ecosystem. If you invest in HBD the value of your capital remains relatively stable. You won't experience major gains or losses from price movements. Instead you continue earning the fixed 12% APR.
Both options have their own advantages and disadvantages which you need to know. The best choice depends on your risk tolerance and investment goals. What kind of investor you are that it depends.
Since HIVE is currently trading near its historical lows and I personally think staying in HIVE may be the better option right now because the price has more room to grow.
On the other hand, holding HBD often makes more sense when the market is at a bullish peak, since prices may be more likely to fall from those levels. In that situation keeping funds in HBD can be safer as well.
A simple strategy is that
- During a bear market, consider accumulating and investing in HIVE.
- During a bull market, consider moving profits into HBD to earn passive income and reduce risk.
- When HIVE prices drop significantly you can convert your HBD back into HIVE and accumulate more tokens.
This can be an effective approach for Hive users.
What do you think about HBD and HIVE right now? Which asset do you prefer for investment? Will be glad to see your answers in the comment section.
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