Uhmm the idea is to hold the coin who has the more chances to grow in value then (value against each other)... It's like a pendulum, when Hive is really low against HBD is actually good to get lots of Hive by purchasing them really cheap... Then when we have the opposite situation it's good to buy lots of HBD with just a few Hive.... Then if you go through this cycles you will end up with a lot of tokens, either of Hive or HBD... So the key is to be able to ride on several rounds of these cycles so you can have much more token than when you started
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More or less, but the idea is due to the same amount of purchase and sales are exactly the same, and therefore it will not be balance amount coming back out. We will dive in to this more later as in why we do not maximize the gain on SELL by increasing the amount of hive throwing in.
Ok, I'll catch not later when the other post comes out then... I didn't fully understand the maximize on sell part.
How many HBD do you have now? If market continue to plunge, will you have enough HBD to buy back HIVE? Yes? No? The answer is simple, regardless of the ratio, you bought HIVE with 10HBD, you need to buy back HBD with 10 HIVE. In your heart you know, the center of gravity is always 1:1. With that you will not bias to which to hodl in the long run. We will talk a little bit more about why after 1:1 is no longer important or the SELL become insignificant, but that's fundamental analysis which I wouldn't like to dive too much into it because its way even more subjective compare to technical. So for now, sell 10 hive at 0.20, you'll get 2HBD. Sell another 10 hive at 0.25, you'll get 2.5HBD. That's exactly why it's important.
Was in Episode 4 Had I not sold 40hive, I wouldn't have that 13HBD to trade.
I got some HBD parked at 0.1, but of course HBD is scarce right now... I'm starting to make a spreadsheet of my trades to make sure I get more HBD later on since I started this cycle by purchasing the Hive with the HBD I had in my balances...
That's my point. Somehow you'll have to start selling hive, in order to get back some HBD to continue trade. But we always stick to 1:1. I don't care how much previously I spent 10HBD to get how much Hive, I only know now I wanted to trade 10 hive back in for HBD. Current ratio is 0.13? I will just park at 0.15. So, 10hive will be 1.5HBD. how is this maximize? It's just the ratio game. Imagine when the ratio is 1.15? 😂 That will be 10hive for 11.5HBD just like how we ended up with more HIVE then before now, when the ratio is below 1. It will be ended up with more HBD when it's selling
above 1.