HBD to Hive and Back Again - Did not Consider Time/Risk

To start off with, I must share that I am not a crypto trader. I took this action in mid August after I was reading all the post about the 20% HDB interest possibly being lowered. Others making this decision about my savings sort of got me to thinking about what are my options.

Then this happened - Hive dropped from the around $0.35 to around $0.275.

Hive Will Rebound Quickly

At the time, I was in a mindset that believed that Hive would rebound quickly and that it would not stay below the $0.30 level for very long. It never occurred to me that the price of Hive would drift at the lower level for a few months.

Swapped HBD for Hive

On August 13th 2023, I had 55.598 in HBD savings. Due to all the stuff I mentioned above, I decided to pull all but 10 HBD out of my savings and swap the HBD for Hive. Since I believe Hive would rebound quickly, I thought this was a no-brainer decision and make back way more than the 20% interest that I was receiving on my HBD savings.

I must have made a little more in HBD that I had put to my savings between Aug 13th and Aug 18th because I ended up transferring a total of 46.598 HBD from my savings.

To swap the HBD to Hive, it took three transactions. When all was said and done, I received a total of 159.834 Hive for the 46.598 HBD that I had removed from my savings account.

Hive Stayed down

I was very confident that the drop in Hive was just a very temporary thing and that it would jump back up at any day. I kept watching the price waiting for that jump to happen but it never did.

The waiting was wearying on my nerves and since the Hive was liquid, I wanted to do something with it. I find it very hard to have liquid money in my wallet and not spend it. I can always find something that I would want to invest it in or something else that I would like to buy.

Never Considered Risk

I was so confident in Hive that it never entered my mind that the price would not rebound. This is a risk that I had never taken into consideration. I like to keep my risk low so I guess you could say I am a little bit Risk adverse however when dealing with crypto is there really anything where the risk is very low?

Liquid Hive To Liquid

It has been almost two months and I have thought of numerous items to spend the funds that I had converted from my HBD savings into Liquid Hive. Since it is just sitting there, I could use it for anything and almost did multiple times before talking myself out of it time and time again.

The Hive is just a little to liquid for me to keep holding it and not reinvest it into another project. Due to this I have decided to remove the temptation and move the amount back into HBD.

Swap Hive Back to HBD

I guess I could try to time the market but I know for a fact that is very hard to do so I made the decision to swap the Hive back to HBD then move that HBD back into my savings so that I would no longer want to spend it.

I rounded the amount up to 160 Hive and that amount was able to provide me with 48.463 HBD. This is actually a little more than I had originally swapped so it ended up being a favorable swap compared to what I swapped back in mid August.

I then transferred 49 HBD to my savings as compared to the 46.598 I had withdrew. I wanted to make sure that I made my savings whole for the amount of time that it would have been earning the 20% interest.

I will be going back to my plan of adding 1 HBD per week (once I earn it) so that I am growing my HBD savings again. This will give me some funds that are locked up and not as easy to spend. Plus also the 20% interest will be nice as well.

Lesson Learned

Like I started the post out, I am not a trader so this was a very good lesson to learn especially since it was very hard not to spend those funds. I find it easier to assign all of my funds to a purpose otherwise I will spend them on the next project that comes to my attention.

Posted Using LeoFinance Alpha