A few years ago Hive blockchain added interest to HBD, mind you HBD is a stable coin of the Hive ecosystem and the witnesses added interest to HBD, there was a time when HBD interest was around 20% per year but presently the witnesses have reduced it to 15% per year, which is still a very good deal. When we look at the major types of investors, we have defensive investors and aggressive investors and when we talk about a stablecoin, most defensive investors would love this because they only care about safety, which is the idea behind adding interest to HBD in the first place. For most aggressive Investor we choose the native token itself which is the hive token because they are all about gaining more return on their money
Investing in HBD is just like investing in a bond because when you invest in HBD, you are borrowing the blockchain and the same thing applies to bonds where you borrow the government your one u and gain interest. We all know that most people who invest in bonds in real life are defensive investors because most defensive investors only care about safety, but the difference between bonds and HBD is that HBD has more interest than bonds. Most bonds have low interest and it is always around 4 to 7% which makes HBD a lifetime opportunity to become rich, but does that mean that everyone should invest their money in HBD for safety?
I believe as an investor your mind should focus on the two parts of investing, which are being aggressive and being defensive just that the market condition should determine how you are going to play your game.
According to most popular investors, they advise that your investment should have nothing less than 20% of defensive investment. This can be bonds or Gold, another remaining asset should be 75% of aggressive investment. I believe it is a good idea, but there is always a better way and the best way I could think of is to use the market as your decision-making tool especially if you are in crypto, this way, you can balance your portfolio and you can build it over time. As it stands for me I am all aggressive on Hive, I did not invest a dime in HBD. This is not because I don’t know the potential of HBD, it is because I have a strategy in mind and the strategy makes me an aggressive investor and a defensive investor at the same time.
I believe Hive gives us the ability to be aggressive investors, and also defensive investors. Not all crypto allows us to do this and that’s why I’ve been thinking of a strategy that might work
The simple strategy I’m trying to use is when there is a downtrend in the market and Hive price is not doing well. 70% or 75% of investments will be in hive and
the remaining 25% will be in HBD but as it stands, I have 99% of my investment in hive because I don't know this strategy before. When the price of Hive goes up I will take out massive profit and convert most of my investment into HBD and when we go back to the bearish market I will use 75% of my money to buy Hive which we create a proper balance as an investor 25% defensive investment and 75% aggressive investment and continue to do this in every circle to see a major improvement in my portfolio.
I love this way because it gives you total balance during a time of emergency. You won’t be forced to sell your hive but sell some of your HBD instead. Your HBD will serve as savings to you because it is very normal for markets to fluctuate, and by the time an emergency shows up, it may not be the right time to sell your hive. Another reason I love this strategy is that your money is only in HBD but you are also earning massive interest on it, which is a nice way to go for financial freedom.
This is not financial advice, you should do your research and if you have any other idea that might be useful, you can share it with me in the comment session.