Hextracoin is one of the hottest lending platforms to come out this year. It has grown from an ICO price of around 90 cents per coin to around $20 a coin (and that is only from October - now). It even hit a high of around $40 in November. It has had serious success.
In November I decided to give Hextracoin a try and see how it went. So far they are what they promise. The platform seems to run without hiccups and the daily interest payouts have been excellent. On average they have been higher then Bitconnects payouts. As of the time of writing this article, it is averaging at 1.16% for the last 7 days and 1.24% the last 30 days. And honestly, that is lower than it has been. Not a bad ROI if you ask me.
Now I don't want to get too far into the Hextracoin topic, what I want to talk about is Hextracoin Gold. Hextracoin Gold is another coin the Hextracoin team is offering to its investors. It isn't a coin that can be sold once released. It will only be used for lending and according to Hextracoin, that loan will have a pretty high interest rate attached to it so you will get up to 58% ROI. It is more of an incentive for the investors to hold Hextracoin and not sell off soon after the ICO. For more details on what it is, go to a post by @comfortcare33 entitled Hextra Coin Gold explained. Also, below is the official statement from the Hextracoin Facebook page about Hextracoin Gold.
The HextraCoin Gold (HXG) will be rewarded to the investors as the following conditions:
1. For investors who have been held HextraCoin until December 25th, 2017. Every 4 HextraCoin (HXT) will reward 1 >HextraCoin Gold (HXG) (4:1).
2. Investors who lend HextraCoin with us until December 25th, 2017 will get the special rate. The proportion will be >changed to 2 HextraCoin (HXT) per 1 HextraCoin Gold (HXG) (2:1).
3. We take snapshot block on December 25th, 2017 11:59 p.m. (UTC).
4. You will receive HXG by airdrop method on January 1st, 2018.
5. HXG will be expired within 15 days after receiving the coins.
6. 1 HXG is equal to 30 USD.
7. HXG is served for lending only. After 30 days of lending, you will get the principle back with special interest rate.
But let's get into my strategy for Hextracoin Gold (HXG). FYI, I did not participate in the ICO or have any involvement in the coin before my initial investment. So this strategy is based on me not having many coins to begin with. I was wanting to maximize my coin collection an accumulate as much HXG as possible before December 25th, while at the same time, maximizing my next lend amount into the platform.
I started with my initial investment into the lending platform mid-November. Normally the strategy for a lending platform is to reinvest your earning as soon and as much as possible. But looking at the current state of the market, I saw a better way.
With the "mooning" of bitcoin lately, Hextracoin (HXT) has taken a hit in price. It went from $30 something to low $20 something. I presume a lot of people are taking their profits, or a good portion of them, from HXT and cashing out for BTC instead of reinvesting. That is good news for those wanting to accumulate HXT. With the fall in price, I am able to get more HXT for the money I get back in interest.
To accumulate as much HXT as possible, I obviously needed to buy at lower prices. So I looked closely at the price of HXT before I transferred any of my USD from interest payouts into HXT. I made a rule for myself, If the price of HXT was over $22, I would hold my USD for the next day. I would check the price again the next day and see where it was. Sometimes I went a couple days without buying HXT. But when I saw that price drop below $22, I bought. I saw it at $14 one time and $19 most other days.
Keep in mind I am not reinvesting, but simply buying HXT low and holding. And I am only buying HXT with the interest I am getting from my initial loan. I am not putting more money in from elsewhere.
I have been doing this for a couple weeks now and have "dollar cost averaged" my way into HXT. For those of you who were wondering why I was just holding HXT, here is why. I have a hunch that a couple of days before Christmas, the price of HXT will increase due to the influx of people preparing for HXG. And since 1 HXG = $30, I believe people won't want to miss out on free money.
On December 24th, I would have accumulated all the HXT I am able to get. So since I believe that the 24th is the day HXT is going to be highest, it only makes sense to lend on that day. There are two reasons for this. The obvious being, HXT is at a high price and it is smart to lock in your loan at such a good price. And that was one of my goals I mentioned above, "maximizing my next lend amount into the platform". I am hoping to see a $40 dollar HXT again like we did mid-November. That means with my dollar cost averaging HXT will essentially double in value and I will be able to lock in a better loan than I would have if I were to just automatically reinvest after I had $100 USD in my wallet.
Another reason I want to wait until the 24th to lend is because, in the official statement from Hextracoin, anyone that is lending at the time of the snapshot will get a 2:1 ratio of HXT to HXG. That means I will get twice as many HXG if I lend than if I hold. And at $30 an HXG that is too much money to say no too.
If you are not a part of Hextracoin, you can sign up here under my referral link. Hextracoin
Do you plan to participate? and what is your strategy for HXG? Share in the comments and always remember to upvote!
Now I do want to mention, this is obviously not a full proof plan. I understand that the platform could go down any second and any investment I make is a risk. That is why I only invested money that I am able to lose. Do not take this as financial advice. This is my strategy as a hobby investor that I am sharing with you. Please be smart with your money and always research any investment opportunity.
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good strategy. extra will go up for sure until 25TH
I sure don't see why it wouldn't. Good opportunity.
I'm surprised Hextra hasn't gone up as I had expected. In fact it has been going down so I have been loaning out 100 tokens each time it has gone down. I'm about to loan out my fourth 100 tokens tonight. That should be my last loan and I'll see what happens on January 1st.
It definitely surprised me. It did hit $27 on the 23rd, so I was optimistic for the 24th. Thought we would see it in the $30's. I ended up loaning all I had at $22. Which is okay with me because I think I averaged about $16 per HXT over the time I was collecting.
But I believe if bitcoin held around the $17000 range, it would of helped HXT. Profit takers were getting BTC while it was cheap.