As "fiat" relentlessly falls in value, all over the world, more and more people are learning the potential advantages of moving some of their assets in under the "protective umbrella" of crypto's asset class.
Source 2: BTC image of creator GDJ on Pixabay • Source 3: ETH image of creator TheDigitalArtist on Pixabay
The "crypto titans" in which one might consider investing? The top two, for different reasons:
- Bitcoin (BTC), the "dumb" crypto - Viewed as "virtual gold," since "everybody knows" real gold is just a "dumb rock!"
- Ethereum (ETH), the "smart" crypto - The foundation for some remarkably disruptive and transformationally powerful concepts like DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens) and RWAs (Real-World Assets), among others.
Between these two, if one (and you should!) includes EVM-based (Ethereum Virtual Machine) blockchains, they hold +80% of the TVL (Total Value Locked) in crypto!
Hmmm. Well @roleerob, sounds interesting, but ... All I know about crypto is what I have learned about our Hive blockchain. I wouldn't even know where to start ... 🤷♂️
Good news!
You don't have to leave the Hive blockchain to save some of your hard-earned dollars in BTC and ETH!
Step #1: Convert HIVE to SWAP.HIVE
First, we move some of our HIVE into Hive Engine, the L2 token side blockchain, resting upon our L1 blockchain - Hive!
Source: Swap Hive Liquidity Bridge UI
Step-by-Step:
- Open the Swap Hive Liquidity Bridge on USwap. Enter your Hive username.
- Click on your HIVE amount.
- Note the amount of your HIVE to be converted. Change, if desired.
- Note the amount of SWAP.HIVE to be received. The beauty of this particular bridge is the customer is rewarded, on the low side of the swap, where applicable. That is, you are getting more HIVE out than you put in! As in this example!!
(See details shown in the far right panel, not displayed here) - When all appears to be as expected / desired, click on the "SWAP" button.
Done! 🤝
The amount of SWAP.HIVE shown will almost instantaneously appear in your Hive Engine wallet.
For OG investors in Hive Engine, there are other bridges that can be used. This is the one I prefer. If you need more info on options, have questions, etc., please feel free to place them in the comments below.
Step #2: Convert SWAP.HIVE to SWAP.BTC and SWAP.ETH
Now, we want to convert our SWAP.HIVE into SWAP.BTC and / or SWAP.ETH.
Source: BeeSwap UI's Swap function
Source: BeeSwap UI's Pool function
Step-by-Step:
- Open BeeSwap, and click on Swap. Click on the "Select Token" button and select SWAP.HIVE.
- Click on the "Select Token" button and select SWAP.BTC.
- Click on 0.1%, for the slippage, to minimize to the extent possible, the price range in which your swap order will be filled.
- Note well: The "Price impact" should be very low, as shown.Tip: I would never swap above 1%, at the most.
- If all appears in order and as expected, click on the "Swap" button.
"Extra credit" steps: - Note well: While not essential, it is prudent to
ensure there is a lot of liquidityin the LP being considered. Otherwise, you risk getting "stuck!"
The liquidity is directly related to the Price impact. As the time of writing this, there was +$143,000, in the SWAP.HIVE:SWAP.BTC LP! 👍 - Where did this +$143,000 come from, i.e. whose money is backing the LP you are considering? Click on this icon and you will find out on the "Richlist!"
Repeat steps above, as desired, for SWAP.ETH. You will now find SWAP.BTC and / or SWAP.ETH in your Hive Engine wallet. The "market" in both will ensure the value of them is close to the much broader "cryptoverse" prices of each found outside of our Hive blockchain.
- Tip: Check that out, from time to time, to confirm! 👍
Done! 🤝
Step #3: Simply HODL or Add Liquidity to the BTC and ETH LPs
You may wish to simply HODL your newly acquired BTC and / or ETH. Many investors do exactly that, as the risk to their investment is minimized.
However ...
As a "continuous learner," you will want to understand that Step #2 would not be possible without the associated LPs (Liquidity Pools) backing the "Swap" you just made. And that other investors have chosen to invest into them, to make your swap possible.
Why would they do that? They have been incentivized, although the risk to their investment grows, along with it. It is beyond the scope of this post to get into details, e.g. the hotly debated / contested subject of Impermanent Loss.
- Here is a YouTube link on this topic - there are 100s, if not 1,000s, of others ...
To finish this post, showing you all of your options, dear reader, here is how you would go about adding some liquidity yourself.
Source: BeeSwap UI's Add Liquidity function
Step-by-Step:
- Inside BeeSwap, click on the "Pools" function, in the upper right of the screen.
- Click on the "Add Liquidity" button.
- Select the LP desired, SWAP.HIVE:SWAP.BTC, in our example.
- Note: The SWAP.HIVE:SWAP.BTC LP has far and away the most liquidity, if you check.
- Put the desired amount of either token you wish to invest into one of these fields. The UI will auto-calculate the other, to maintain the mandatory 50% / 50% investment of each ...
- Optional: Click on the "Max" button, if you want to create what the name suggests - the maximum investment possible, with the liquidity you currently have in your Hive Engine wallet.
- Once satisfied all looks in order, click on the "Add Liquidity" button.
Done! 🤝
The topic of investing into liquidity pools is a broad one. Make sure you understand the concept pretty thoroughly, before electing to do this yourself.
- And ... As always ... NFA!(Not Financial Advice)!DYOR!(Do Your Own Research)!
I woke up this morning to a continuing trend of "higher highs" and "higher lows" in the crypto markets. 🚀 The price of BTC and ETH are both soaring to new ATHs, since the catastrophic "collapse" of "Scam Bankrupt Fraud's" FTX empire.
I decided to invest my time into writing this post, to help those who might benefit from considering this important investment option for themselves, but not sure how to go about it. You now know how to do it ...
without ever leaving
our Hive blockchain!
our Hive blockchain!
I’d love to hear any feedback you may be inspired to provide. Or, if I can help you with anything, please don't hesitate to ask.
Until "next time," all the best to you for a better tomorrow, as we all work together to build up our Hive Communities and add increasing value to our Hive blockchain! 👍 😊
Respectfully,
Blogger @roleerob
Hive "Dolphin" 🐬 & Man Cave "Dragon" 🐉
P.S. I am not a financial adviser. Please consider this post as financial information and / or opinion only. Please perform your own due diligence, in whatever manner seems best to you, if you have found it to be beneficial.
🌲 No trees were harmed in the publishing of this post! 🌲
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