My journey of turning Hive Rewards into Real Investments
As a newbie on Hive, I am learning fast thanks to @terganftp, research and observations. Sometimes, I dedicate hours to learning more about the chain resulting in over 20 bookmarks.
One of the things I love about Hive is the reality. It is a world on its own and the value you get here can redefine your life.
A few days ago, after I made this mutual funds post, @terganftp sent me 5 HBD and encouraged me to use it as a seed for mutual fund investing. That gesture meant a lot because it opened a whole world of possibilities which is reinvesting Hive rewards into real world financial assets.
From Hive to Naira and Mutual Funds
I converted my HBD to Hive before converting to USDT then Naira. I then funded my mutual fund investment account with the sum of 7,000 naira.
It might sound small but the compounding effect and move of taking digital earnings from a decentralized platform and reinvesting in the traditional system is something.
I intend to also utilize my HBD rewards in the same manner. Although, with the recent knowledge on some aspect of hive, I will be splitting that into three parts. One part will go into aggressive investments, another will go into conservative investments, while the last part into hive investments such as delegations, DaPPs, and other investment instruments on Hive.
I started with Actifit already and the Move to Earn DaPP shows a great way of earning while exercising. It only needs consistency and support.
The Investment
Why Mutual Funds and Stocks?
As someone who runs a recycling company, I understand how important it is to make money work for you. I am of the opinion that a good entrepreneur should be able to make smart financial decisions.
Mutual funds allow me to grow the funds safely while stocks offers a similar but aggressive approach. It also allows me to have a stake in Nigerian companies.
The plan is to start small and stay consistent. I will be documenting the outcome on a weekly basis on Hive. The update will show how the investment grows and how I manage to balance between Hive rewards, stocks, and mutual fund contributions.
Without @terganftp encouragement, I might have delayed this step longer. Sometimes a push is what you need.
Special thanks to @terganftp and the Hive community.
I call on everyone to support this initiative. Your support will make this plan a success and can be used to showcase the world a real journey from someone turning Hive income into traditional investment.
I love the idea of making your money work for you. Mutual funds are one way to be certain and with small amounts they are my preferred way. I'm curious if ETF's are available on your stock exchange? Also curious what the minimum amounts and trading fees.
In Canada mutual funds have high MER (management expense ratio's) which can sap earnings. ETF's have lower MER but are traded on the stock exchange so fees can add up. Individual stocks are great but they require considerable knowledge to trade effectively and purchasing at the right time can be an art form.
As for earning on chain
dApps can be awesome but typically need capital to start. Splinterlands is well known and a way I got my start but N14,000 to get going (or it used to be). Delegations are a good way to start but the rewards when your HP is small can be small to non-existent. HBD is great with the 15%% staking return but (a) you only get it monthly and (b) it immediately gets staked when you get it.
Two tokens I personally like are EDSI. Hold the coin (typical value 1 HIVE) and get a regular weekly payout :
Doing the math that is 17.5%. I'm really happy with numbers like that. Just remember that HIVE goes up and down so better if you are ok with volatility.
Another one I really like is $SURGE
Again doing the math I'm getting an 18% return on my surge tokens. However the return is in HBD which is a stablecoin so less yoyo effect :)
The nice thing about holding EDSI or SURGE is you do nothing other than hold the coin and get LIQUID Hive or HBD which immediately frees up your rewards to transfer to real world to buy more of your preferred mutual fund :)
But so many different options.
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Yes, we have ETFs on the exchange. The disadvantage is the liquidity which is around $500 on each ETF. We have Vetiva 30, Stanbic IBTC 30, Lotus, NewGold, Meristem Growth among others.
The trading cost is 1.1325% of consideration amount on buying and 1.4775% of consideration amount on selling. It similar to stock trading cost too.
I am definitely getting some of EDSI and SUrge. I think it is best to get them with the recent HIVE price dip. That way, the value is lesser and one can even make more money if HIVE increases
I'll write an article on the difference between Canadian and Nigerian ETF funds shortly (the difference is considerable from what I've been reading). At first glance Nigerian ETF's seem like a really poor choice while in Canada they are easily the go to over mutual funds.
As for EDSI and Surge. Just so you are aware:
EDSI -- has a fair market value at 1 EDSI to 1 Hive. If you think that HIVE is going to make a swing upwards it is absolutely they play.
SURGE -- is structured much like a preferred share. If Hive goes up SURGE shares will likely fall in value. The benefit of holding SURGE is that it pays out in HBD (pegged to the USD). If you buy them you get a regular payout in HBD which acts as a nice stablecoin. Especially useful if Hive goes down :)
I can't wait to read the article. Nigerians aren't big on ETFs. Mutual funds, Bonds, and Treasury Bills are what we majorly deal with.
I checked the prices and noticed the same thing concerning EDSI and SURGE price. I will look to get some this coming week
Before you purchase anything... watch the spread! EDSI and SURGE don't have a liquidity pool and the spread between buy and sell can be brutal! I'm looking at what I can do to fix that but at the moment all I can say is EDSI was selling at 1.15 Hive this morning but it should be much much closer to 1.0 (maybe up to 1.03) please don't buy when there is a 15% spread in the market.
Thanks for the headsup. I will create my orders around 1.03 price
I finished the article. Not my best work (kind of rushed) so expect a better article when the community is up and running but if you are curious it is here