Being a Hive User Gives You an Unfair Trading Advantage

The Hive community both on-chain and on Twitter made a lot of noise yesterday about the pump in HIVE's price. When you're so heavily involved in a project from day-to-day, any small movement in the price hits home far more than if you've just got a coin sitting in a wallet.

My investment in BTC and ETH are larger than my investment in HIVE (in terms of coins - definitely not in terms of daily energy and focus). With BTC and ETH, a 20% uptick feels great. I look at something like a Blockfolio tracker or a Tradingview chart and get excited about the prospect that my coins are worth 20% more in terms of fiat.

With HIVE, it's far different. You're not just looking at a screen and seeing that your coins are worth more. You're looking at it from an entirely different persepctive.

When you're a full-time or even part-time Hive user, you feel each move to a greater degree because HIVE is your currency.

After weeks or months of making posts and seeing HIVE denominated around a particular price

Built-In Edge

I put out this Tweet on the LeoFinance Twitter Account and called HIVE the most "trader-friendly cryptocurrency on the planet."

HIVE has extremely volatile price swings. It tends to settle down in certain ranges for long stretches of time and everyone forgets about the price. Then all of the sudden, BAM! Out of nowhere, HIVE rises 15-30% in a matter of hours.

It could be a tight supply. An illiquid market. A whale stepping in and accumulating. Market manipulation or all of the above... Whatever you want to attribute the run to, it doesn't really matter imo. I just enjoy the opportunities that it presents.

In my opinion, being Hive users gives us a built-in advantage over people who just trade HIVE. There is a subset of people out there who live on crypto exchanges and simply trade coins when the charts show them something they like.

Over the past few days, I've seen a lot of chartists come out and say that a breakout was about to happen in HIVE. Turns out, they were right. These aren't the people that say HIVE is going to $1 next week or something along those lines. These are the people who are rationally looking at some technical indicator and reading it back for the whole world to see.

I'm no technical analyst myself, but when traders outside of the Hive ecosystem start saying that HIVE is gonna pump, I usually keep a closer eye on the charts for a few days. I don't really change anything I do - mostly because I don't believe the vast majority of price predictions - but I do keep some buys and sells rotating in the HIVE orderbooks.

As you can see in the chart above, I usually accumulate HIVE right around that 2100-2200 SATs level. Even back on STEEM, this level acted as a decent range to buy and wait for a random pump like the one we saw yesterday. It could be a psychological level or it could just be a coincidence in the markets.

Either way -- accumulating at that level hasn't failed me for now.

As a user of Hive, I have an advantage over people who simply trade HIVE in and out for profits: I understand this blockchain ecosystem.

If you're reading this post, you're probably in the same boat. You know that liquid HIVE doesn't give you much power over the blockchain. You can't do much with liquid HIVE outside of transferring/trading it (like every other coin). The power comes into play when you stake that liquid HIVE and start using it for curation, delegation, projects, etc.

When you turn your HIVE into HIVE POWER, you get exactly what the name suggests.

The edge that I believe you and I get for this knowledge is in the event of HIVE crashing through your accumulation zone. If you pick a zone on the charts where you accumulate HIVE and the price breaks through it to the downside, you can hedge your risk by taking that liquid HIVE, staking it on-chain and earning an APY.

If you find the right project to delegate to, the right content to curate or even your own project to BUIDL, then you can utilize your HIVE POWER to generate anywhere from 10-30% APY. This reduces your cost basis overtime and you can slowly power down that HIVE back into its liquid form as you wait for HIVE to recover back to your accumulation zone and eventually break above that zone.

This is not financial advice. This is just a story about what I've been doing with HIVE on the exchanges over the past several months. I didn't trade STEEM all that actively back in the day. The more I trade HIVE, the more I regret not doing this in the past. To me, it seems like the edge is a bigger deal than I can even put into words.

Don't just listen to what I say, watch what I do. HIVE is quickly approaching my accumulation levels once again. We may sit back down here for a while or we may see it break out again to the up or downside. Either way, the strategy seems pretty clear to me. If we go down way below these levels, I'll keep averaging in and power up to earn an APY and reduce cost basis. If we go up, then I'll take profits on the way up just like I did yesterday.

Someone on Twitter mentioned that it could be too time consuming to look at these charts. I check-in on this maybe 2-3 times a week. I'm very inactive in that sense and I'd rather focus on Buidling Hive/LeoFinance than on trading all day long. This kind of accumulation/take-profits strategy is not very time-consuming at all.

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