This is a controversial topic and again, I may be stepping on a few toes but it's still important to talk about it. If I can change a few minds at the end of my post, that means it worth it.
As I've mentioned in my previous post about expectations, money and the earning possibility is what drives most of the users to Hive, the possibility to get rich as fast as possible. As everything is transparent on hive, you can check everyone's wallet, transactions, many are hoping to earn as much as the big guys are earning, one day. This is not impossible, but in order to do that, you need to know how.
Photo by Klara Kulikova on Unsplash
There are all kinds of users on Hive, some with a lot of stake, others have nothing as they are brand new and there are those who are not new but still don't have any stake at all, for various reasons, one of which is, they are cashing out every single penny they're earning.
Earning On Hive
There are various ways to earn on Hive, of which the most obvious is by posting. This is free, so to say as you can do it right away after you register, without investing fiat or other crypto. In other words you don't need to power up anything in order to be able to post. Will there be restrictions? Yes, there will be as your Resource Credit (RC) will be drained fast once you start posting, commenting and voting and you'll be benched till your RC will be full again, but after that you can resume your activity, till you drain your RC again.
This is a newbie guide, aimed towards those who don't understand the concept of proof of stake, so I'm going to focus on the importance of stake. Those who have invested in Hive don't need a guide about the importance of stake. They already know what it is and using it for their advantage.
As I mentioned above, the earning possibility is what's driving people to Hive but what matters even more is what you do with your earnings. Coming with a web2/fiat mentality has a lot of disadvantages and even though some may start to earn on Hive, the previously mentioned mentality is going to work against them. Some are able to recognize the difference between the web2/fiat mentality and crypto or Hive mentality and are able to adapt, while others will be trapped in the old mindset and do the same as they have always been doing. Walking the same path and expecting different results does not work anywhere. Just as you can't have the cake and eat it too. Both can be applied to Hive.
Photo by Nathan Dumlao on Unsplash
Ways Of Earning On Hive
There are several ways of earning on Hive:
- by posting (earning author rewards),
- by commenting,
- by upvoting posts (earning curation rewards),
- by delegating for delegation rewards,
- earning APR for HBD in Savings,
- earning APR for holding HP.
These are just a few of many, but the most obvious is by posting. After the 7 day period ends, author rewards are yours (not before). You get half of the author rewards powered up as HP, the other half is liquid and split between Hive and HBD. (The liquid Hive and HBD part is a simplified explanation here, to avoid confusing newbies even more.)
After a few payouts, your RC problems should start to disappear as having some Hive powered up is needed for that. This is the part where you can start enjoying blogging, reading and upvoting content. Your vote will still not worth much, maybe not even a penny, but coming from a web2 social media world, LIKING something you like is in your blood and upvoting posts is also a way of appreciation if you really enjoy the content. Don't worry about the value of your vote, just vote if you think the post worth it.
At this point you have three options. You either:
- power up your liquid earnings, to grow your stake, to get rid of the RC problems once and for all and start earning curation rewards,
- you keep it liquid (not the best idea, unless you have some plans),
- cash it out (the worst option).
Without any thinking, you can guess which option is the most popular among those who have come to Hive for a quick buck. Yes, that's right, the last one. They even power down to the last penny sometimes and transfer all out to the exchanges.
We can't judge or force them to do it differently as it's their money, they can do whatever they want with it, just as we can do whatever we want with our stake. However, things are not so simple and you see that when the high level of entitlement comes to the surface.
Photo by Christian Lue on Unsplash
We Live In The Era Of Entitlement
The above statement may sound brutal but unfortunately it's true and you can see it on Hive every single day. There are posts complaining about not earning enough, sometimes accusing whoever they can for their lack of earnings. This happens at any level, not just at newbie level. There are people who have been trying to guilt trip others for years, without any success and they still don't see what they are doing.
As I mentioned in the above section, posting seems to be the most popular and the easiest way of earning. You just drop your post, hoping for big upvotes, then after payout, you cash out everything and start over. This may be profitable for awhile, but as upvotes are never guaranteed, you'll always be dependent of those votes, that may or may not come. Once the votes start to dry out, frustration kicks in, which leads to accusations towards those with high stake and high voting potential.
Unfortunately this mentality, according to which the rich have to give to the poor is present everywhere, on Hive as well. Here rich means users with high stake and poor means users with no stake.
In reality, those who are called rich, or whales or orca, or whatever you want to call them are the ones who decided not to eat the cake and rather have it. Many of them have invested fiat or bought Hive exchanging other cryptocurrencies, in order to put their stake to good use. Those who are called poor are the users who have decided to cash out everything and look poor as they have been eating he cake constantly.
The most common argument you see is that it's easy for the whales as they can afford it. The truth is, you don't know who can afford what. You can stay anonymous on Hive and no one knows who's stake is that or if the stake is really theirs or bought on borrowed fiat. Just as you can't see if those who are cashing out everything, are indeed forced to do that. Basically it's not important as it's a private matter. What's important is your own attitude towards your own and other users stake and the sooner you understand what I mean by that, the better for you. Some say why should I support those who are not supporting anyone but themselves and I can't really blame them. This is a community and those who are always just taking and never giving back anything are not always loved.
The financial part of Hive is a very complex one and not always easy to understand, especially for those coming from the fiat world. I've been studying it from day one but most likely there are users who still can't understand it after many years. For a newbie, having Hive, HP and HBD at the same time, conversion rates, market prices and so on can be super confusing. However, if you really want to be in control of your finances, you make the effort and learn.
Photo by Vika Strawberrika on Unsplash
To Stake, Or Not To Stake
The short answer to the above question is it's up to you, but we all know staking has a lot more advantages than not staking.
Crypto has always been about holding, the exact opposite of the obsolete economical system we have worldwide. In some developed countries people can have everything, from big houses to luxury cars, but when you look into their finances, they only have debts and what you see as their wealth is in fact owned by banks and financial institutions. That is not wealth, that is modern era slavery.
Crypto can change that and on Hive you have the possibility to set up your piggy bank, if you're smart. Once you start building up your stake, you can earn curation rewards, which can be passive earning, based on your stake. If you're smart, one day you can earn more on curation than you're earning on posting and as the idea is to put your money to work for you and not vice versa, this should be something to consider as soon as possible. You may earn very little at the beginning, but it adds up in time.
Another important thing newbies don't know is that airdrops are based on stake. Over the years we've had a bunch of airdrops and each time, when an airdop is announced, you see salty comments like it's not fair as the rich get richer. Have I ever told you that you can't have the cake and eat it too? I think I have. Well, here's a concrete example why stake is important and this is just one example. Airdrops are favoring the holders and this will hardly ever change.
Photo by Hanna Zhyhar on Unsplash
A New Mindset Is Needed
I've said this before, in my previous post and saying it again. A new mindset is needed. We all want financial freedom and are working towards obtaining it, but in order to do that, you need to drop the old mindset. Spending every single penny, then hoping to get more is not what's going to change your life.
Hive has a lot of investment opportunities. You can earn your stake, build it up and put it to good use. Learn how to be in control of your finances.
Someone commented under my previous post saying that Hive is a journey, not a race and I fully agree with this statement. Think long term and make your plan long term. There's no jackpot here to hit then run. Build, build, build and soon you'll be enjoying the benefits. Earn your freedom the smart way.
I am not exactly a newbie but I started being active on hive a few weeks ago (so I guess in a way I am still a newbie), and is see this article as a goldmine! There are a lot of things I had to figure out on my own but a lot more was still confusing and this article has made things clearer, it has answered most of the questions I have about hive, even the ones I didn't know I have (lol). Thank you so much for doing this, I always learn a thing or two from your articles
Yes, you are :)
There's always a lot of things to figure out on our own and that's how you learn. It's not a bad thing as what you learn on your own remains in your memory.
And I'm glad my posts are helpful. Happy blogging :)
Your article is about what I think of hive.Noe feel more confident. There are people around me dragging me down everyday saying "it is fraudulent platform,You will lose everything."But I have decided not to listen to them.
I am here for 4-5 months has learnt a lot of things, still learning. The person who brought me here,lost his hope and it seems he gonna quit 😂😂😂.But I am trying my best. I never thought of cashing out or making trade. What I earn from post is used to power up because I feel shame when I vote someone and they got nothing.That is why my moto is to power up only may be investing time or money from bank.😀😀
This kind of post must keep popping from stake holders for that the poor guys like me do not give up hope.😂😂
If you have not invested anything in the platform, you have nothing to lose. These people are with fiat mindset.
The truth is, no one can keep you here. But if you know that powering out is a good thing, then you're on the right track.
Thank you so much for your advice ❤️❤️
Thank you so much for this wonderful post. There is indeed the need for a renewed mindset, Hive profits those who stay and invest in the community rather than those who want to profit and go. The reward system is cool in order to keep people holding on to the community. Building up may not be easy at the beginning but the later reward is worthwhile
I hope they understand that in order for them to get vote, someone has to stake and keep that stake. Without stake every vote would have zero value. Every beginning is difficult and takes time to build some stake, but if I've been able to do it without investing, than everyone is.
Exactly. That's very correct. Thanks alot for sharing that wonderful tips. Together we can grow and make Hive a better place for us all and the new ones to come
I agree with your post. Being on hive is not easy as we see it outside. It takes a lot of sacrifice. Some of the downs of hive can be frustrating especially taking hours to write quality post but no one get to notice it. But when you understand how it works and you really write for fun and whatever comes you accept it, that’s the time you’ll appreciate hive.
Like you said investing on hive is something we all should you take serious, I know sometimes life can be hard that we would like to withdraw some of our fund. But I’ll suggest that if we truly love what we do here then we should always make it a point to power up some of our earnings always so it doesn’t just make us selfish
The problem with newbies is that when they get a big or bigger upvote, they think those votes are going to continue endlessly. The truth is, curation groups have some rules and votes should be spread to support a many users as possible.
This is why one should grow their followers and supporters organically, but that can't be done in one day, it takes a lot of time. Basically you have to attract those votes, with good content, consistency, engagement and so on. Those who are not patient, quit too soon. Others continue and build and succeed. It's that simple.
As about building stake, you have my opinion in the post above.
Keep up the good work as I see you know what to do, so you're on the right track.
Well said.
When the HBD price hit $3, I had 25 HBD. Unfortunately I was caught asleep and bought 20 HBD hive while HBD was $1 and a half. I think hive was $0.4. I bought ecency points with 5 HBD. When the Hive was 0.85 dollars, I exchanged it at the end of the month and converted it to HBD. It's not much, but it's been a good win for me. I don't plan to shoot from hive, I will continue by increasing HP and buying hive in ups and downs.
I want to ask you, is it necessary to upgrade only HP for airdrops? Can I benefit from airdrops at the rate of HP I have?
Airdrops are usually based on your HP, as liquid Hive doesn't count. But each airdrop is different. Usually there's an announcement in advance, to let people know.
Thank you, I also read your previous post. You give important information about Hive.
You're welcome.
Wow!
This post is more than just advice for hive newbies this is financial therapy. I love financial education. So I didn’t just take this post as an advice for hive newbies. There’s so much financial knowledge and wisdom in it.
One thing I’ll never forget again and I’ll always keep at the back of my mind when it comes to my finance is that “you can’t eat your cake and still have it too”. We have all heard this saying before but I have never heard it being related to finances like this one.
I have vowed to take this advice and I have chosen to stake my earnings.
Thank you so much for the wisdom you just blessed us with.
You won't regret staking your earnings, trust me. How many I've seen over the years, powering down, cashing out, buying clothes and shoes, then doing a post to show off. Those things are long used, in the bin, thrown away, but your stake can still give you dividends. One day you get to a point where you can cash out a little bit, but still maintain your stake. Put the money to work for you, not the other way around.
You give real good financial advice. I will always be on your blog fetching some wisdom.
I actually saw this post almost immediately it was posted a few hours ago but I was still writing my last post so I just reblogged it to be on my blog so that when I’m done writing and posting I would come check this out.
I’ve found myself drawn to your blogs the last few days. You explain things in a basic way that even newbies who are just starting out on Hive can understand.
I’ll be looking forward to your next post. Have a great day!
Thank you for the nice words. I tend to make it simple as my goal is to help newbies understand and in order to do that, it needs to be precise and simple, so those who don't really speak English can understand it too. These are not academic papers 😂
Have fun blogging!
You’re right about this not being an academic paper. You oldies mostly just have a way with saying simple things using fancy words to show us newbies you’ve been blogging for while(Jk)😂.
I find it really nice seeing you (a respected oldie) use basic words that dummies like me can understand:)
Another excellent write-up! I'm on Hive for the long run. For me, Hive is a platform for a long-term investment. I am willing to invest my time to first unlearn the old world, relearn the new concept and eventually invest more as I get more familiar and comfortable with the whole web 3.0 ecosystem. Your article here has cleared all the doubts and questions that have been on my mind all this time. Thank you for sharing!🙏
That's the right thing to do and thank you for the nice words. I'm glad you find it helpful. Good luck and let me know if you need help 😊
Having a reformed mindset towards the platform will help everyone joining the chain both on a long-term and short-term basis. Though times it's not easy to have needs stirring at your face but still decide to do otherwise.
Think the way out to have other good sources so that that from here will be a backup by then one can think the long-term direction.
Thanks for sharing
Exactly. Think of your Hive wallet as your savings for rainy days and use it if there's no other way and your life is it in danger. That's how you can save.
That's the point.
Thanks senior
great post!
@tipu curate
Thanks.
The sky is so beautiful, I think if we have a little bit of a dream, we will fall in love with something we did not expect.
Unfortunately your comment has nothing to do with the topic of my post. You should read the post first, before leaving a comment.
Helpful.
Thanks from a Noob!
Just seems to make more sense as a long term commitment on ANY platform. So yeah...
But thanks for clarify how the monetary side works a bit more 👍🙏
You're welcome, I'm glad it helped.
Helpful indeed.
I'm going to show it to the new noobs too.
Nicely done and thanks again 👏
Exactly - this doesn't have to mean powering up every sat, but it should include some powering up at times, even a little. As for the rest? If you genuinely need it for living, live on it. Otherwise, diversify it - even Hive has plenty of trading opportunities with pob, alive, etc.
This post has been manually curated by the VYB curation project
Powering up it's up to every individual, but at the beginning it helps to accumulate, till you get more capital. If you can spare it, then you should.
There are many who need the earnings to make ends meet though.
Thanks for the curation.
Yes, eating has to come first - but that's a vicious cycle 😢 Personally I try to encourage people to get out of that, even if it's only pennies at a time. Eventually it adds up to something.
!PIZZA !ALIVE !LOL
@erikah! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @wrestlingdesires. (4/10)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
lolztoken.com
They just work on so many levels.
Credit: reddit
@erikah, I sent you an $LOLZ on behalf of @wrestlingdesires
Are You Ready for some $FUN? Learn about LOLZ's new FUN tribe!
(4/6)
Thank you very much for this wonderful post !!! This has a lot of insight!!!
My pleasure, that was the scope of it.
Absolutely boss!! I have gained a personal tutor on hive!!
PIZZA Holders sent $PIZZA tips in this post's comments:
@wrestlingdesires(4/15) tipped @erikah (x1)
Join us in Discord!
This is very useful for beginners like me, I want to ask you friends. does someone who has cashed all the earnings transferred to the exchange without powering up miss out on a huge curation?
Each curator has its own rules, but if you don't support anyone but yourself (by cashing out everything), don't expect much from the community. Those who are supporting others have a stake, because they have no cashed out.
thanks friend, I still want to ask. Sorry for asking a lot of questions, I hope you don't get tired of responding. Can an account that has made a withdrawal to the exchange without powering up, can the account get curation again when it powers up? or it won't matter anymore.
Unfortunately I can't answer that question as that's up to the curators. And curator can be anyone, from simple user to curator groups.
thanks friend, I want to ask the last one. How to get witnesses because when I was and saw some witnesses I didn't know what to do? Sorry for asking too many questions because I want to know.
I don't understand what you mean by get witnesses.
I mean how to determine witnesses?
I love the breakdown of your write- up here, thanks for sharing and hope you had fun? Thank you
You're welcome and I'm glad you find it helpful.
Only a month ago have i been a bit regular in posting. So juat learning but some technical terms still confusing. What exactly is the meanibg if stake?
If you read my post, you can find the answer to your question.
I read the post but i have a confusion of what exactly it is. Is it the one u r holding
No, it is what you power up.
Ok. Thanks for the info.
It says in your wallet.
Oh! Thanks. Very valuable info. Iam just going through your articles regarding guiding the new bees.
Iam not sure how far my country has advanced in this. Bcos none of friends or family is aware of hive.