There have been some massive down swings and up swings in the crypto market. We're still in the 'volatile phase'. Good for traders to make a quick profit, not so for investors. As we're heading into a bear market(or are we already in it?), it's a good idea for investors to brush through the crypto industry looking for the best place to park and earn interest on their investment while the bear is out hunting.
What Is HBD?
Hive Backed Dollar is a native stablecoin of the Hive blockchain designed to hold and maintain the $1USD peg. They are "backed" by the networks ability to convert them into $1 USD worth of HIVE. This is achieved by two decentralized conversion operations; Hive To HBD and HBD to Hive. These two conversion operations help keep the price at $1USD with a tight margin.
A Brief Definition Of Hive
Hive is a Web 3.0 blockchain. It is ‘Web3’ because the economics of the platform are shared among the entire community and decisions are made by the community using the Delegated Proof Of Stake protocol, rather than by centralized corporate committees.
Hive is backed by a strong community committed to building and innovating on the platform. It is the community that carries out all maintenance and development work on the blockchain in a decentralized manner.
Combining fast processing times(just 3 seconds!) and commission-free transactions, Hive is positioned to become one of the leading Web3 blockchain used by people around the world.
Ways To Get HBD...
You can earn HBD by posting good original content on the platforms that a build on Hive. The reward is usually 50% Hive Power and 50% HBD.
You can convert your Hive tokens to HBD in your wallet. You can also use the internal market to make the conversion.
HBD can be purchased at external exchanges.
HBD held In Savings
Here is the cool part about putting your HBD into Savings.
- The current interest rate is 20% APR(Annual Percentage Return) as defined by the witnesses of the Hive blockchain. With the power of compound interest this can bring insane ROI in 5 to 10 years. With the current market conditions, HBD has one of the industry leading APRs and the Best Way To Earn Interest On Crypto.
- Every Hive account has a wallet where the HBD savings are safely stored and only you have the keys. You have control over your asset.
- Fee less and lightning fast transactions. You're not charged for transferring your crypto into savings or transacting within the Hive blockchain.
- A stablecoin pegged at USD$ with two conversion operations to keep the price around $1 USD.
HBD Use Cases
Hive Backed Dollar is integrated into a large ecosystem of dapps on Hive. You can use it to not only purchase goods and services within the Hive blockchain but also on some other locations.
Here's an in-dept post about the Value of HBD and how it can become a major stablecoin in the crypto industry.
Disclaimer
The information presented is for educational purposes only and is not to be considered investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don't invest more than what you can afford to lose.
Thank you for reading!
Posted Using LeoFinance Beta
I do love HBD and has even started a small power down in order to buy more HBD, that was before the market crash.
I have now decided to use all my free HBD to buy Hive at the low price, hoping that the price will recover again, thus enabling me to buy more HBD than what I have converted to HIVE.
Posted Using LeoFinance Beta
Yes, that's the right mindset. Accumulating HBD now is a great idea. It gives you more leverage to make transactions or putting it into savings to earn 20% APR interest.
Posted Using LeoFinance Beta
The 20% APR is just so great, I would actually like to put some Fiat into it, but currently I don't have additional to risk!!
Posted Using LeoFinance Beta
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