There's a trend that seems to occur whenever we experience price fluctuations. People tend to neglect one Hive asset in favour of another only to rue missed opportunities when the neglected asset starts increasing in value. We get this all the time, and Hive continues to provide us with a lot more investment options that it really helps to pay attention to where our money flows.
The two primary investments on the Hive chain are the Hive token itself, and its stable coin known as HBD. Choosing to store value in either has its own unique advantages and disadvantages. It is oftentimes when we experience a fluctuation in the value of Hive that our attention is drawn to the other. When Hive sparks we wish we stored more as such while when it dips badly (as we experience now), we tend to see HBD as an investment option more clearly.
There are also unique incentives for going with either as I mentioned earlier. That 20% APR on HBD is one that we definitely do not see everyday on a stable asset. A substantial initial investment earning 20% passively is quite the tempting offer. Perhaps the biggest flipside is that HBD is a stable asset and as such its value is already known, so there are no other upsides. There are even a fair bit of downsides when you consider the fact that HBD sometimes struggles to maintain the peg.
When you consider upsides though, Hive clearly has the biggest advantage in this area. We strongly believe that the project is clearly undervalued and there is still a ton of growth to come. What this means is that the dips shouldn't matter in the grand scheme of things, as long as the focus is long-term. Unfortunately the dips do matter especially to short term investors or those who might seek liquidation for one reason or the other.
Holding Hive and staking within the community does give us a bit of respect within the community too. We can also actively earn more Hive by curation rather than creation and this is a selfless, less stressful way of earning Hive. This is aimed more at longer term investors though, and is one important detail potential investors should not forget.
The introduction of second layer tokens also provided further investment options for us here on the chain. Leofinance in particular has provided an array of investment options like no other project on Hive. Holding promising second layer tokens is one strategy which has nothing but upsides (most are almost completely worthless now). There is also the specialized investment options offered by leofinance along with some solid crypto and traditional financial advice.
Conclusion
I think second layer tokens will likely deliver the most returns when this place finally blows, so we should ignore at our own peril. Whatever your strategy is though, it is important to make provisions for holding some form of Hive assets in the long term. It doesn't cost us much to do so, and there are only upsides to this.
This is really enlightening ....you just confirm one of my greatest long term goal on Hive to massively invest in her token first or second
There is the other side of delegations which also earn one passive income on daily with out creating anything....
To me Hive is just so amazing and I've got great plans for it this year
Thanks for sharing..
Gracias 🥂