How to further de-risk? Instead of putting in HBD Saving, I am doing this...
This is the sequel to this post entitled Putting Savings in Bank vs HBD Savings.
Boy, I did went through some trouble to on-ramp some fiat to buy Hive with the intention to get some HBD for the HBD Savings.
However, I am doing some kind of a detour.
Let's talk numbers.
If you follow my earlier post, my argument is that I rather put in $5000 to earn $1000 by 12 months, with the 20% interest in the HBD savings than to save $24K with the bank.
Suppose if I want to yield the same $1000 just by holding $1000 worth of Hive. I need this portfolio to worth $2000 in a year.
Hive is 0.37 today. $1000 will get me about 2700 Hive.
To have it worth $2000 (i.e. still yielding $1000), I need Hive to hit $0.74.
Then I can sell my 2700 Hive at 0.74 to get about $2000.
Somewhere at the white horizontal line.
That seems like a very low target to meet given how much upward pressure there would be in the bull market.
With this analysis, it does not seem wise to commit $5000 to save in HBD if I just to yield a $1000.
For Hive to reach $0.74 is quite probable within a year, in my view, so I should only bet using $1000.
Of course, there is a risk of it going lower. And I will get less value in HBD if that happens.
Well, since crypto is already risky, why not just take the risk, anyway!
I am joking.
Half joking. Hard to find the sweet spot in terms of risk-benefit ratio, but I think I bet on the bull market coming in about a year.
That's right, when there is BTC halving, we should see the price moving up again, if history rhymes.
P/S: This is not financial advice, and please do your own due diligence before investing.
If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.
You might be interested in this post, @thatkidsblack, @graciousvic, @peniel2010, @deflacion, @jacoalberts, @limonta, @young-kedar, @svanbo, @sumotori, @zakludick, @poplar-22 and @hankanon!
Posted Using LeoFinance Alpha
https://twitter.com/lee19389/status/1683092419204481026
#hive #posh
Can be a nice leverage to have when Hive will go up. What do you think about Leo than? I'm betting a bit that it will have a pump and then I will re-allocate some to HBD :)
LEO is a long term hold for me. :)
Very interesting. So having some liquid HIVE for a while (if I can keep it) and then selling to HBD later might be better than just hoarding HBD savings?
I mean... I guess this is what you are saying. I can do something similar... at a much smaller amount.
Yep
It's a tough trade-off. HBD gives more stability in terms of fiat but Hive has higher reward potential. Hive is more risky than HBD though and it's also possible for Hive price to go down.
Haha yes!
I also think buying hive would be a better option.