In November 2021, Hive's price went from $1.20 to $2.80 in one week. There was great enthusiasm in the market at that time. However, it was evident that the price would not stay at that level. Those who had liquid Hive sold for over $2, and when the bear market came, they could buy Hive for five times what they sold.
The bear market has allowed us to buy Hive for 40-45 cents. In the last week of June, Hive rose to 68 cents. The crypto market was going through the most stressful times at that time. So it was obvious that the rise of the Hive would not be permanent. As a matter of fact, the price of Hive decreased to 40 cents again.
I was able to sell for about 20 percent of my Hive portfolio on both rises. If I had a higher amount of liquid Hive, I could have increased my portfolio by 5x instead of 2x on a Hive basis.
Finally, this morning, the price of HBD rose above $3. I couldn't make any sales at this price, which is unsustainable because I kept HBD in the savings account. At the time of writing this article, the price of HBD has dropped to $1.40 on Upbit. I'm not sure if this level is sustainable.
Today's HBD price surge from the Upbit exchange also pushed the price of pHBD, which was traded against USDC on PolyCub, to 1.45. Those holding their HBD on PolyCub could take advantage of this attractive return.
In November 2021, PolyCub had not yet been activated. During the pump, last June, those who invested in the Hive-Polycub pool on Polycub could realize their profits.
The rapid price increase in Hive leads to sales of Hive Engine tokens. At such times, it is not easy to convert Swap-Hive to Hive, as many community members are in a hurry to realize the profit on Hive coins. When liquidity is dry in Leodex and Beeswap, it is possible to convert Swap. Hive to Hive via Tribaldex by paying a 1% commission.
It is psychologically disturbing to keep the Hive or HBDs in liquid form. It is possible to get an annual return of 13% by powering up Hive coins. In addition, HBD provides a 20% return when stored in the savings account. Hive and HDB are held uninvested every day; potential returns are lost.
Fortunately, it is also possible to invest in Hive and HBD on PolyCub. Thus, we are in a position to access liquidity when an attractive trading opportunity arises due to a possible pump.
Conclusion
I think the basic strategy of the small investor should be HODL because long-term investing in cryptocurrencies makes it possible to benefit from compounding. In addition, the HODL strategy also protects investors from price fluctuations in the crypto market.
On the other hand, we know that prices in the crypto market can go to extremes. For example, Hive has fluctuated between 33 cents and 2.80 USD in the last 12 months. And the price of HBD, a stablecoin, reached $3 today. I believe we can keep one-third of our savings in stablecoins to take advantage of the apparent opportunities emerging in the market. Those who have investments in PolyCub's USDC-pHBD pool, which still yields a 41% return, had the opportunity to sell their pHBDs with an additional 50% return. Moreover, they did not have to forego returns to keep their investments liquid.
Thank you for reading.
Note: It would be wise to make the coin-stablecoin conversion during the next bull run.
Posted Using LeoFinance Beta
A few weeks ago, I was like: "Why would I let my HBD on PolyCub as the APR is similar to native savings on Hive?"
Well, I have the answer now... I never thought about liquidity and being able to react to Korean pumps hehe :)
Posted Using LeoFinance Beta
I didn't think of it either. In fairness, these random pumps make no sense whatsoever and are irrational AF. 😂
Koreans have their own trading style :)
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The only constant for their style is, it happens when we are sleeping! Damn
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I was not sleeping, but I did not have the liquidity! Damn :)
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These things give us focus of where we still need development. This is why we have to keep discussing the idea of adding value to HBD as opposed to just arbitrage and other market tactics. Those are important but not as the sole vehicle.
Posted Using LeoFinance Beta
The HBD market is fragmented. I am not sure if bots are running to take advantage of price differences between Upbit and the inner market. There is also the HBD price stabilizer and Polycub bots. We need the whole system to work in a frictionless manner.
HBD would get A LOT more value if it was used as medium of exchange, as the dollar is - you know, going door to door and convincing merchants to accept it and then having people actually make purchases with it. This would benefit the whole Hive ecosystem. Of course this is at odds with a 20% APR on savings, which is a HUGE disincentive to spend ... So first the witnesses should annuonce that the rate on HBD savings would gradually go down to perhaps 4,5 or 5% and start implementing this and then a couple of desirable products should be made purchasable in HBD (with some kind of cashback as incentives perhaps). Hive is an excellent payment infrastructure with 3s block time and 0 tx fees but the 20% APR on savings discourages payments
Aha, thanks for this explanation of what's going on, I came searching for HBD news because I caught it at $1.28. I only had 1.79 HBD liquid in my wallet but I swapped it for Hive in the market and powered up my little profit of 4something Hive. Hey I'll take even the little wins! :)
The profits are not real before we realize them ;)
Posted Using LeoFinance Beta
I actually follow your strategy, 38% of my portfolio is in stables on Polycub. I didn't have any pHBD but I did have some HBD lying around and I sold when I woke up, the price was still holding at 1.5 so I did well for myself, bought some hive, will wait for the post pump activity and then buy back some stables. I hope you profited from this market move man!
By the way, I noticed that you powered up some Leo for LPUD a week ago, thanks for helping the Leo ecosystem grow! You're one step closer to becoming eligible to win that juicy HiveFest ticket.
The next step that will take you close to HiveFest, is to Bring your Fam to Leo, make sure to check it out!
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I made some profits as Hive's price increased by %20 :)
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Liquidity and access to that liquidity is king!
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That's the whole point of the article!
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