We've talked in the previous days about HODLers, accumulating, taking profit, and even contrarian investing.
I'd like to return to Hive today, and to something many from our ecosystem have noticed over time. It is remarkable how well-equipped the Hive ecosystem is to offer users the right tools regardless of the market conditions or the phase in the crypto cycle.
Ways to Earn on Hive Base Layer
Those tools are suitable for all types of small(ish) investors and investing strategies, some of which we reviewed the days before.
On the base layer, we have the following ways to earn HIVE, HIVE Power, or HBD rewards:
- curation rewards (HP) - active/passive
- author rewards (HP or HP+HBD or nothing, i.e. burned or sent to DHF) - active, generally
- beneficiary rewards (HP) - active/passive
- witness rewards (HP) - active/semi-passive
- DHF proposal payouts (HBD) - active
- "interest" on HP (HP) - passive
- HBD savings interest (HBD) - passive
- delegate HP for HIVE return (HIVE) - I only mention the base layer stuff - mostly passive
- paid gig (HIVE or HBD or different arrangement) - active
- ongoing work (HIVE or HBD or different arrangement) - active
- Hive special project funded by Value Plan (which is funded by the DHF) (HBD) - active
- trading (HIVE and/or HBD) - active/passive (bot)
Did I miss anything? Remember, this is only the base layer, no games, no Hive-Engine here.
Ok... So why did I list all of the above? To see all the options we have at the base layer alone for increasing our tokens both actively and passively. Most Hive users already know them, I'm sure.
But let's see what that means for different types of investors we've talked about.
HODLers Keep Earning on Hive, Regardless of Crypto Cycle
On Hive we have lots of HODLers, people who believe in Hive and/or other projects created on top of a sidechain like Hive-Engine.
I am one of them, particularly when it comes to HIVE Power.
So, why do hodlers feel more confident to even go through the different phases of the crypto cycle without taking profit, other than their unshaken confidence in the community, base protocol, and what is built around them?
Well, I just listed a number of serious reasons to do so. Those rewards keep coming no matter the market conditions. Some are passive and don't require any action or minimal involvement, while others need the user to be active, and few require expertise in a certain domain or partnering with someone with expertise, on top of the work needed.
And keep in mind Hive has no classical transaction fees, and a little bit of HP can give you "transaction fees" forever.
For example, just by curating with average results and with the HP interest, someone's HP can grow with an APR of 11-12% no matter if it's bull or bear. Maybe a little less during the bull market, if more users start to curate. That's an appreciable APR, considering HIVE is a volatile coin and will at some point pump hard, like most alts.
Then, if besides curation someone also starts commenting and/or publishing their own posts, author rewards add up to this APR. Without checking, I'd say even averagely-rewarded authors should get more than 20% APR from author rewards + curation rewards + interest on HP, as a sheer number of tokens. If that assumption is true, that becomes at least as profitable as keeping HBD in savings for the same 20% APR, but with the caveat that HBD is stable, HIVE should go up during the bull market.
The difference is HBD in savings is completely passive (bar checking the debt level and interest ratio from time to time), and is stable-ish, for those who need that, for example for a planned purchase in the offline world. And of course, HP has a 13-week power-down schedule, while HBD in savings has a 3-day delay to withdraw. That is an important distinction.
Taking Profit and Accumulating on Hive Base Layer
But the dual nature of the Hive base layer economy, with one token volatile and one stable, makes it suitable for taking profit from HIVE to HBD during the bull market, and to accumulate HIVE (Power) using the stored HBD during the bear market. So, everyone who wants to do this can do it using the internal market or conversions, without needing anything from outside the ecosystem for that to happen.
There are ways to get base tokens outside the ecosystem too, obviously, either through listings on CEXes or through bridges built at the sidechains' level.
Final Words
I excluded from the discussion on purpose sidechain tokens (including for games), to focus on one thing alone: what we can do only with the base layer.
Obviously, the Hive ecosystem is much more than that, has by now multiple sidechains and a plethora of games, NFTs (for games and not only), and fungible tokens with different characteristics (including with Proof-of-Brain, the social reward mechanism that is similar - to some degree - to the one from the base layer at the Hive-Engine sidechain level).
Continuation about Hive sidechains in part 2 >>