To "Hodl" or "Stake"? HIVE and Hive Tokens

in LeoFinance2 months ago

I'm still a learner when it comes to cryptocurrency investment and I want to be a good student who wouldn't risk all his savings in a shitty coin/token that gets lost in a few weeks or months. During my trial attempts then in Steem-engine , I got some tokens that are gone extinct. However, most were not purchased, but were just airdropped.

I do not just want to be a part of the blockchain mantra, I want to leave some indelible marks and also keep legacies for my children. Some persons around me have got to know that I've embraced blockchain, cryptocurrencies and I'm looking forward to leveraging the technology for my career and businesses. It would be expected that being a part of the early adopters and then in the future when mass adoption comes through, I should have something tangible to offer in structure, network, technical know-how and even asset volume.

Just yesterday, I told a friend abut the investment opportunities available on Hive and the options available for business integration from the ledger technology to e-commerce and more, he is an accountant and soon, he started questioning the profitability of HIVE and Hive tokens. We were later drawn to a debate of whether to hodl a token or to stake. This prompts this write to look into the pros and cons of holding HIVE and HIVE tokens in stake or hodling.

Hodling as I understand is the "crypto slang" for "holding, which simply implies having a liquid balance of a token and probably in "savings" pending when a price action would yield a favourable ROI at an outright sale. One can make the most of the profit possible when holding a token in liquid form. Within the time which the token is held, there is is no profit and it the bear market meets it, then it means more time is needed for a wait before the token is finally sold.

During the first month of HIVE , I was able to hodl some substantial amount of HIVE. I actually reach my ATH of liquid tokens held in thousands, I had held the token for over a month and was anticipating a good price to be able to convert to BTC. ALong the wait, I noticed the beginning of the first bull run of HIVE which pegged at $0.97. I couldn't wait till that time as I had given off the token at $0.7 for the fear of dumping again. Such experience of mine are the things that happen when we hodl a token in liquid form.

Staking a Hive token on the other hand implies, powering up the token to receive influence tokens given out as upvotes. When a token is staked, a percentage of the value given out as upvotes is received as curation rewards. The percentage depends on the tokens. Presently, the author -to- curator ratios for Hive token curation are as follows:

  • 50%/50% for HIVE
  • 50%/50% for LEO
  • 55%/45% for SPORTS
  • 60%/40% for CTP
  • 60%/40% for LIST
  • 95%/5% for CHARY

That's just for the tokens I invest. There may be slight changes for other tokens depending on what the tokens represent. I wasn't so happy with the experience I had with hodling HIVE and losing over $500 because of selling by FOMO. That wouldn't have been of the tokens were in stake.

On the other hand, if the tokens were held in stakes, I may not have part-took in the HIVE bull sales since powerdown delay wouldn't have permitted. However, on the long run, holding a stake for a vibrant community may afford some tangible curation earnings over time that could cover some liquid sales profit. A typical case is my SPORTS stake that have accumulated over time to the present 24 million and that earns me around $10 of curation rewards monthly. It makes a whole lot of sense on the long run.

The underlying fact is that we're still in the test-level of cryprocurrency. When mass adoption ensues, then the true worth of the tokens would be revealed. This would be however, when communities create tangible use-cases for their tokens.

Whichever be our choice of whether to hodl or stake, a DPoS protocol like HIVE with provisions for second layer presents ample opportunities for investments and business.

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Ultimately I believe a blend is always best. There are advantages to each and putting all our proverbial eggs in one basket is not the best approach.

There are many opportunities and we all have to define what we want. One could almost build a portfolio completely with Hive Engine tokens.

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Quite a solid advice. A blend of hodling and staking is an awesome way to go. With tokens like SPI, BRO, which are almost like collateral, we see the benefits of just having the tokens in your wallet.

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Yeah they give access to other things plus pay dividends so hodling them is a smart idea.

There are going to be other opportunities for a return. For example, I heard of an idea that is being tossed around in SPI that could allow one to earn a nice return each year in what is classed an income token.

So many possibilities.

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