In November 2021, Hive's price went from $1.20 to $2.80 in one week. There was great enthusiasm in the market at that time. However, it was evident that the price would not stay at that level. Those who had liquid Hive sold for over $2, and when the bear market came, they could buy Hive for five times what they sold.
The bear market has allowed us to buy Hive for 40-45 cents. In the last week of June, Hive rose to 68 cents. The crypto market was going through the most stressful times at that time. So it was obvious that the rise of the Hive would not be permanent. As a matter of fact, the price of Hive decreased to 40 cents again.
I was able to sell for about 20 percent of my Hive portfolio on both rises. If I had a higher amount of liquid Hive, I could have increased my portfolio by 5x instead of 2x on a Hive basis.
Finally, this morning, the price of HBD rose above $3. I couldn't make any sales at this price, which is unsustainable because I kept HBD in the savings account. At the time of writing this article, the price of HBD has dropped to $1.40 on Upbit. I'm not sure if this level is sustainable.
Today's HBD price surge from the Upbit exchange also pushed the price of pHBD, which was traded against USDC on PolyCub, to 1.45. Those holding their HBD on PolyCub could take advantage of this attractive return.
In November 2021, PolyCub had not yet been activated. During the pump, last June, those who invested in the Hive-Polycub pool on Polycub could realize their profits.
The rapid price increase in Hive leads to sales of Hive Engine tokens. At such times, it is not easy to convert Swap-Hive to Hive, as many community members are in a hurry to realize the profit on Hive coins. When liquidity is dry in Leodex and Beeswap, it is possible to convert Swap. Hive to Hive via Tribaldex by paying a 1% commission.
It is psychologically disturbing to keep the Hive or HBDs in liquid form. It is possible to get an annual return of 13% by powering up Hive coins. In addition, HBD provides a 20% return when stored in the savings account. Hive and HDB are held uninvested every day; potential returns are lost.
Fortunately, it is also possible to invest in Hive and HBD on PolyCub. Thus, we are in a position to access liquidity when an attractive trading opportunity arises due to a possible pump.
Conclusion
I think the basic strategy of the small investor should be HODL because long-term investing in cryptocurrencies makes it possible to benefit from compounding. In addition, the HODL strategy also protects investors from price fluctuations in the crypto market.
On the other hand, we know that prices in the crypto market can go to extremes. For example, Hive has fluctuated between 33 cents and 2.80 USD in the last 12 months. And the price of HBD, a stablecoin, reached $3 today. I believe we can keep one-third of our savings in stablecoins to take advantage of the apparent opportunities emerging in the market. Those who have investments in PolyCub's USDC-pHBD pool, which still yields a 41% return, had the opportunity to sell their pHBDs with an additional 50% return. Moreover, they did not have to forego returns to keep their investments liquid.
Thank you for reading.
Note: It would be wise to make the coin-stablecoin conversion during the next bull run.
Posted Using LeoFinance Beta
