Is moving HBD from post rewards to savings a good option for most users in the current market?

12 mo
LeoFinance
4 Min Read
789 words

For as long as our chain has been around, users have speculated and theory-crafted about what to do with our post rewards. Should we buy and Power Up as much HIVE as possible every time there's a post payout? If so, should we acquire HIVE by converting the HBD or by buying HIVE on the internal market? If not, should liquid rewards be used to acquire more of other cryptocurrencies like Bitcoin or Ethereum? Or perhaps best of all, have a simple plan that involves a mixture of all of the above.

Today, however, we have another option of saving the HBD payout for a decent interest (currently set to 10%). And with many of now earning far more HBD than ever done before due to the recent rally in the HIVE price, considering what to do with it is likely a question on people's mind.

So what should we do?

Post rewards fredrikaa thursday 100 HBD.png

Seeing liquid post rewards north of 100 HBD triggers questions of what to do with the payouts. I also couldn't help but love the fact that HBD was exactly $1.000 in this screenshot from my peakd wallet

New users are still likely best to just Power Up

It is easy to get distracted by the financial optimization problem as if it exists in isolation. There is no shortage of new users asking how they should curate to earn the most curation rewards, or otherwise make the most from the tokens that they have. In practice, however, showing that you are continuously powering up and looking to build a stronger presence on Hive has more benefits than just the financial returns of higher staking/curation rewards and a higher voting value. Doing so may also increase the likelihood of receiving good upvotes by other Hive stakeholders. From our point of view, it is more attractive to distribute votes to users who are buying and powering up for at least two reasons:

  1. The obvious reason that it results in less selling pressure and thus a higher token value.
  2. It helps further decentralize Hive as a blockchain when more users accumulate and HODL Hive rather than putting it back on exchanges.

New users who don't have a lot of Hive Power already will benefit more from aiming to increase their overall post reward. Thus, the best option is likely to do whatever may increase the likelihood of receiving more upvotes. And showcasing enthusiasm for Hive, and powering up has always been a good way of doing so.

What about the rest of us? What's the difference really between saving HBD and staking more Hive Power?

Again, it is tempting to get into the nitty-gritty about what expected annual returns one can make percentage-wise from saving HBD versus staking more Hive Power and thus earning staking + curation rewards. But again, while I'm sure some would find those comparisons interesting, they would mostly be a waste of time. Because in the end, it will pale in comparison to the likely price change in HIVE one way or the other. Instead of asking what will earn you more tokens, it is better to ask yourself the simple questions:

  • Do I think HIVE is more likely than not to go up or down in value in the short to mid-term?
  • Do I want or need better liquidity so that the 3 day withdrawal time of HBD from Savings versus the 13 weeks power down of Hive Power makes a real difference?
  • Do I have a goal to acquire a larger say in Hive's governance and/or token distribution and thus have a demand for more Hive Power?

Sticking with the first, since it is the question most related to the topic, choosing to put HBD into savings is most of all a hedge against cryptos (including HIVE) going down in price. So if you're in a position now where your portfolio has gone up an unbelievable amount in recent days, then diversifying into some HBD savings is likely a good idea. At least speaking purely from the point of view of financial diversification and risk allocation.

Speaking for myself, I decided to start stacking some HBD in savings for now. Maybe I'll let it grow to 1000, or maybe 2500 to begin with, and then just keep it. Maybe I will be able to accumulate more HBD and then buy a future dip with it? Or maybe I'll just earn a decent ROI. I don't know, but sometimes, doing something a bit different can be wise if only to avoid having all the eggs in one basket.

What do you all intend to do with the increased HBD rewards?

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12 mo

Let's not forget all the other fun options as well! Buying PunksonHive, Splinterland cards, dcity cards.

It's really cool to see the economy having so many different potential ways to earn and grow.

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3

Oh I even forgot all of that while writing the post. As detailed in my last post on taking a break, I've purposefully reduced the number of things that I am monitoring and being involved with, as well as making simpler rules for how I trade/spend my attention. So I have hardly looked at it yet. Funny, because @olebulls who I onboarded earlier this year is now a total evangelist and try-hard in all of the above 😂, and trying to get me more into it as well.

But yes, having nice things to spend HBD on is from the point of view of blockchain growth the biggest key to success (not more burns). So cheering on all of it :)

2

I was doing Power Up Month, but now the question is definitely going to come up. I have enough HP to begin diversifying but I still want to build up my account....

1

It's always a good idea to build up the account! But if that's all one has done for the past months or years, then when price goes up and you don't get more HP from buying with HBD then saving HBD can also be an option.

In your case, I would probably feel motivated to just stack HP for now. At least I did that religiously until I had 10,000.

0

I'm wondering just how to do that though... By trading or just keeping on what I'm doing :) ...

0

HBDs are looking increasingly attractive as a stable hodl, especially for the next little while with the new HBD-BUSD pool.

4

I think so too! And while I have no plans of religiously compounding them forever, I do think having some is nice. Good diversity is important I've heard ;)

0

Oh I'm a big fan of diversity, or mediocrity as some would say (i.e. the people who got LUCKY (and nothing else) by putting all their eggs in one basket).

0

Yep, this pool is really really attractive !

Do you know how exactly to bridge between Hive and BSC to swap direclt BUSD into SWAP.BUSD instead of having a step with bLEO before ? !PIZZA

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0

Apparently you can just deposit direct from BSC, but personally I went via DEC - which was a bit painful, but the returns were worth it!

3

Ok thanks ! Never thought about it ! !PIZZA

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0
I've been thinking the same thing recently. For now, I plan to save the HBD in order to participate in things like the new game that Dan is dxeveloping. As for HIVE, I like it when I can generate even more HIVE tokens with them by seeding out to other communities that provide a daily/weekly dividend In HIVE and other tokens. This in addition to delegating to earn even more HIVE.

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1

That's great too! What communities are you most happy to delegate to atm?

1

For instance, the HODL community represents the stance I take when it comes to crypto, and I love the hustle that the founder of UTOPIS embodies.

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0

For the moment, I'm going to leave mine liquid or put them into Savings... mostly for the purpose of having some liquidity handy when some new opportunity calls for ready funds. Savings with that 10% return is a pretty good option since most new developments give more than a 3-day heads up.

1

Good idea. I am still thinking that Bitcoin has another rally left in this cycle. So it is tempting to get more by any means necessary. But I've learned the hard way to always take some opposing bets to my own belief, and saving HBD is also a nice way to pick up more HIVE or BTC later should they drop.

1

What I like about the HBD savings option is the rare thing that you can earn a return on essentially LIQUID ("uninvested") funds. It's not just sitting there as inactive, but I can still get my hands on it in just three days. The three days is also a nice buffer to counteract "stupid impulses!"

I'm not convinced BTC is done yet, either.

I've also been thinking that HBD savings is a good place to park some funds for taking advantage of airdrops ("if you stake THIS, we'll give you THAT") with advance notice.

0

Delegating hive power to leo.voter gives you 16% apr rewards in leo tokens.

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0

That's right ! I often Forget about this !
I think having some HBD into saving plus some delegation is a good strategy, HBD is safer.
But having a 16% APR with current LEO price could really be good when the price will go higher !

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0

That is what I'm doing! 👀

0
12 mo

#Hbd is a good initiative knowing 10% is rewarding.
I am starting to hold some of it since it is closer to liquidity than Hive power.
Another idea if the percentage jumps to 12 or 15 it will force more folks to hold HBD forcing them to burn Hive for HBD reducing in the long run the amount of Hive altogether.

!BEER

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0
12 mo

I had someone asking why I powered up when I could earn 10% from savings. I said I can make about the same from curation with HP and I can also be helping others at the same time. It is never just about what I can earn. Hive will only prosper if people are willing to support good content even if it is not from someone they know. It should not be about cliques or trying to get a vote from a whale in return for your support. Quality matters.

Hive five!

3
12 mo (edited)

Thank you, @Steevc for your community-mindedness. I try to post, daily, on various subjects and it’s encouraging to read your gracious response to these questions raised by Fredrikaa ✌🏼

1

Hey @fredrikaa, here is a little bit of BEER from @pouchon for you. Enjoy it!

Learn how to earn FREE BEER each day by staking your BEER.

0

For now the most sensible thing would be to save on #HBD and wait to see what will happen with #Hive if it goes down or goes up in price. I will try to save some and I will most likely convert them into Hive Power later to improve my healing gains.

0

I have also started to think along these lines but do believe the Hive price will still do more so still too early. Having 2000 HBD is great when and if Hive drops in price as another passive earning opportunity for later.

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0
12 mo

I think that I am with you on this one. Getting a decent amount in savings, so that it could nicely grow by itself, and diversify the rest. Whereas I have no time to study the options at the moment, I am personally still very far from having enough in savings. Therefore, it is all good for now ;)

0

HBD will be a good hedge against the inevitable bear market. Though I think there are still many months of the current bull one left, so I'm not shifting into it just yet. There are also the 3speak and Ragnarok (Dan's game) airdrops coming which make me want to stick to HIVE and buy more with HBD for the time being.

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0

Keeping HBD as they are earned and shifting them to savings is a wise hedge and I personally advocate the approach.

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0

Holding HBD into saving is a safest way to earn overtime. My own strategy is to make a 50/50. When I got some HBD I sell some of it and place some into saving.

Anyway I'm really far away from your 100 HBD, I'm getting 5 for my biggest posts and I'm sure I'm already above most of the users :') !PIZZA

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0
12 mo (edited)

PIZZA! PIZZA!

PIZZA Holders sent $PIZZA tips in this post's comments:
@ykretz.leo(6/9) tipped @revisesociology (x1)
ykretz.leo tipped fredrikaa (x1)

Learn more at https://hive.pizza.

0
12 mo

我获得的代币很少,还没有操作过,但是我想这的确值得去考虑。

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0