I've been trading pretty actively in the past several weeks as the DeFi boom struck a chord throughout crypto and we've seen a lot of new and old players getting more active in the markets.
There are a lot of opportunities to speculate out there and I have traded in and out of several coins that I never thought I would touch in a million years (i.e. LINK, ADA, KNC, SNX and a few others), but one coin that I have been heavy-handed in buying is HIVE.
HIVE is the cryptocurrency for the Hive blockchain ecosystem. If you're reading this right now, you're either extremely familiar with Hive (as a daily user of the chain) or you're a new user and have no idea why HIVE is such a great investment in 2020.
I've found myself pushing the buy button on HIVE a lot lately as the price keeps dipping below 2100 SATs. To me, this is a no-brainer trade. Whether I'm looking for a little short-term speculation or a long-term hodl - or most likely a bit of both - HIVE provides plenty of opportunities to buy at this strong level of support.. and as you can see from the recent price action: it bounces off this support like a ball in zero-g.
Without further ado, here are the top 5 reasons why I'm buying HIVE today.
1). Greed
Let's kick it off with the most shallow of the 5 reasons: greed.
As I just mentioned (and as you can see in the following chart), HIVE is one of the most predictable cryptocurrencies out there (in my personal opinion). As someone who uses Hive on a daily basis, I am very familiar with the currency and how it tends to act in different environments and at certain price levels - I also tend to look at prices in terms of SATs as opposed to USD.
The yellow line here is set at the 2200 SAT level. Below this price is where I tend to start laddering HIVE buy orders. I start with some small orders right at 2200 and then as the price gets closer to 2000 SATs, my orders get a lot larger.
This is a daily chart going back to the start of June which is when the major rally after the launch of the Hive blockchain cooled off. That rally was pretty much untradable as it was filled with hype and new exchanges and a brand new currency.
Now that HIVE has settled in and found a price range, it's been fairly easy to just buy when it gets below that 2200 SAT level and then keep some for HODLing/sell some when it's above 2300 SATs.
That might not sound like much -- bouncing between buy orders at 2200 and sell orders around 2300, but it's more than you think. 4.5% in just a few days per trade is not a bad return. Although I typically set the sells around 2500 SATs and then power up the rest for yield.
Greed is ultimately the main driver for most of the crypto industry. For me, trading HIVE on a purely greed-driven basis is easy to justify.
2). BUIDL
Following up on greed, buying HIVE can also come out of a desire to BUIDL. The Hive blockchain ecosystem is filled with opportunities to build your next great idea, a new website, launch your own token or even build some automation cash cow.
Being on this chain for so many years now, I've seen so many types of businesses, communities, dApps, games, automation, etc. It's well into the hundreds at this point.
Holding HIVE gives you a lot of power to build your next great business. With HIVE POWER, you can drive a lot of awareness to your project and awareness is half the game. Just because you buidl it doesn't mean they'll come. BUT in my experience, if you buidl it on HIVE and have the HIVE POWER to encourage community engagement with your brand, business or dApp, then your odds of success increase dramatically.
Hive is one of the most unique places to build a business because of the ability to tap into a living community of real people who really enjoy new additions to this ecosystem. This gives me (and many others) a big motivator for buying and HODLing HIVE as staked HIVE (HIVE POWER).
3). Community
One of the most under appreciated values of Hive is the community behind it. Unless you've spent any measure of time on Hive-based applications or front-ends, it's impossible to really get a sense of the community that exists here.
The above screenshot was taken today from hivedapps.com. It shows the monthly active users and monthly transaction volume for the top 30 dApps on the Hive blockchain. Compared to something like Facebook, this is nothing. Compared to any other blockchain in the world, this is massive.
Hive is one of the largest blockchain communities in the world. A unicorn amongst unicorns. If you're not already a member of the ecosystem, then go take a look around some of the top dApps and see what Hive is all about.
4). dApps
Community leads nicely into dApps. This screenshot shows the top 10 dApps by user activity on the Hive blockchain. A lot of activity is concentrated on the top few dApps, but one thing that is consistent across the board is growth.
When I look at that screenshot (and I track the dApps pretty regularly) one thing that I continually see month-to-month is growth in the number of users and transaction volume amongst the top applications here on Hive.
Whether you're a trader or a long-term investor in HIVE as a cryptocurrency, all of this volume and activity is incredibly bullish for the ecosystem. Without activity, you'd have a dying currency with no community desire to buy it up when the price dips.
One of the many reasons why the media has been wrong every time they said that BTC is dead over the past decade is because of the community behind it who can envision the applications that can be built with Bitcoin. When they see Bitcoin, they see immutable, global, decentralized and trust-less payments. When the media sees it, they see some fake internet money.
When you look at Hive, you should see dozens of applications working separately but together on the core mission of growing the overall userbase and on-chain activity.
5). Yield
Let's close this out with yield which is not unlike how we started (greed). DeFi yield farming is the conversation these days as people in crypto look for opportunities to buy up certain tokens, stake them and leverage different contracts in order to farm out the highest possible APY (annual percentage yield).
On Hive, you can earn a yield in so many different ways:
1). Curation APR:
Curating on-chain content from front ends like https://peakd.com, https://leofinance.io and others with staked HIVE (HIVE POWER) yields a return on your efforts. When you upvote a piece of content, you're rewarding the author for their work and you're also getting rewarded for your curation of that work. Typical curation APRs are anywhere from 6-25% depending on a lot of variables.
2). Delegation APR:
If you don't want to spend the time curating content, you can automate your staking rewards by delegating to a project like @leo.voter (which pays a 16% APR daily. Paid out in LEO tokens). Or you can even go to a decentralized HIVE POWER lending marketplace and delegate out your HP for passive yield to various users/projects who post delegation requests.
Delegating your HIVE POWER is a unique way to earn yield because it is a no-risk way to generate yield. It's no-risk because a delegation simply allows the other party to use your HIVE Power but they never actually gain access to your HIVE tokens. The HIVE currency stays in your account, but the power of that HIVE is delegated to the receiving account.
Many DeFi contracts require that you loan out your actual tokens or grant contract access to them. With Hive, you can delegate out the power of your tokens without ever giving up your keys/access to them.
3). Staking APR:
Many people don't know this but holding HIVE as staked HIVE (HIVE POWER) in your account actually generates passive staking rewards in addition to the other rewards you get from curation/delegation, etc.
The current APR is about 3.33% for having HIVE POWER staked in your account. If you go to an account and watch the HIVE POWER from 1 day to the next, you'll notice the small increases that just accrue in the account balance. It's a pretty great feature of this chain that is under-recognized. @dalz wrote a more in-depth post about staking rewards and I recommend giving it a read.
I wrote a mini-series (of which I still have more parts to add) about earning money on Hive. If you're interested in some more in-depth explanations about earning on HIVE check out Part 1, Part 2 and Part 3.
Conclusion
The conclusion is that none of this is financial advice but merely the reasons why I buy HIVE on a damn-near daily basis. When HIVE is at lows like this (below 2200 SATs) I'm a buyer. The short-term spikes up are seemingly easy to predict in my opinion and I capitalize on those spikes when I can.
Outside of that HIVE is one of the 4 cryptocurrencies that I HODL for the long-term. Mainly for the 5 reasons that I outlined above. I've chosen to spend my time, energy and resources here on Hive to build my own project, create content, curate content and ultimately enjoy this ecosystem that I call my digital home.
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Earn LEO + HIVE rewards by creating crypto/finance-related content in our PeakD community or directly from our hive-based interface at https://leofinance.io.
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Posted Using LeoFinance
I am not yet very familiar with cryptocurrency, but I am already starting to understand something a little. I will read posts and literature, perhaps I will understand better. Great post. Thanks you.
That is where most of us were before hive. From being here, joining the community and learning from more experienced users you will understand a lot more.
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Same like me ...
Hive is one of the best places you could be to learn about crypto, so you're definitely in the right place.
I started investing in crypto before I found this community, but once I joined the community and started writing and engaging with crypto content on this blockchain, I learned vastly more than I ever could have imagined. There's something about earning while you learn on Hive that is unique and makes the learning sink in.
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Thank you for responding to my comment. You are absolutely right, there is also a good opportunity here to learn how to work with cryptocurrency. There are many smart and modern people here. Have a good evening.
The smartest community of people I've ever met!
You too :)
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We're about to enter the next accumulation zone! I prefer to buy around $.20 as opposed to measuring in SATS
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That's great! If we hit $0.20, I'll likely use some fiat to buy as well. Right now, I'm comfortable with the SATS price, but .20 will probably happen if BTC drops a bit further
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Comprehensive explanation of the HIVE ecosystem and the ways someone could boost his income. I simply love that through one post you can receive tokens from so many communities if the article angle is common for them. Just amazing!
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It's an amazing place! 4 years ago when I got here, it was still amazing, but not quite as great as it is today. The opportunities here are endless if you spend the time, effort and passion to figure them out
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Splendid, I generally think there's too much to hive than we can basically ignore, the community, the dapps the greed to buildl, the investment prospects and the numerous opportunities as well.
20.61k monthly user is great I'm hoping in months to come it can get up to 100k and more really. I'm also buying long and making plans for the long term.
I believe that Hive will get there some day in terms of MAU. As long as the dApps continue to buidl and the users stay active on the dApps as we onboard new faces, it's going to grow fast.
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Point number 5!!!
Hive is such a remarkable opportunity to let your investments grow while you plug into the community, support each other , and see the fruits of your labor.
Great post man. Excellent points!!
Thanks Jon! Yes, exactly. It's one of the most unique places in the world where you have the opportunity to grow, connect and earn all at once.
Posted Using LeoFinance
I just bought 3000. It may dip or rip but does not matter if you are here for the long haul.
I bought a bunch as well and have bought more this morning as we see the price sitting at that ~2000 sat level on Binance. Easy play for me both for the long-term and even in the short-term as we see Hive continually play this 2000-2400 range.
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I started staking mine and left 800 liquid for the time being. I might buy more as I keep promoting the chain on other platforms.
I didn't think of that sat level, I think I could start setting a 5% sell and buy order around the 2200 sat range and see how much I can earn as it continues around there.
I think it's worth giving it a shot. I never traded much when we were on Steem, but now I realize that there's a lot of opportunity that I left on the table. When you spend all day here on Hive, you grow familiar with the token and price movements. It can make for an insightful trading strategy, if you know how to control your impulses and stick to a strategy.
At the end of the day, if HIVE crashes after you've bought, you can always power up and earn yield to make up for the loss.
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On the community side of things, I'm super bullish about our ability to break away from Steemit Inc and stand on our own two feet. A lot of people out there are still downplaying how strong an agile this community is. We thwarted our greatest fear (hostile takeover with ninjamined stake) with a lot of grace.
The upcoming HF24 will be a nice new beginning for this community.
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1000%. It's not nearly recognized enough. Outside of Bitcoin, I think Hive is one of the few cryptocurrencies that has built itself on the back of a community rather than a central entity.
The distribution of Hive is so much better now without Stinc. We also don't have to rely on their poor direction and selfish initiatives. Now we can focus on the one thing that gives this place value: community.
Posted Using LeoFinance
buy and HODL!
!BEER
Can't go wrong there!
Posted Using LeoFinance
What's the best way to buy Hive? I tried to go through the Hive wallet but the exchange wanted at least $60 worth of bitcoin in order to trade and that's a bit to rich for my blood.
Binance is pretty good
^ yes, I like Binance or Bittrex personally. There are other methods too, but most of the top crypto exchanges out there have HIVE/BTC and even HIVE/USDT pairs.
Posted Using LeoFinance
If people could begin to comprehend how valuable
the process is, they will flock to #hive yesterday.
In reality few people want a process.
In the meantime, I am hodling #leo and #hive periodically.
Posted Using LeoFinance
Love to hear that you're hodling LEO and HIVE. I think there's a lot of untapped potential in both as we try to gain new users for the overall platform.
People don't yet realize the opportunity because it's so massive that it's hard to explain. Similar to BTC, they will jump on the bandwagon with time
Posted Using LeoFinance
Hi great post and very interesting. I am a "newbie" so this is a great post to learn. There also a lot of ??? in my head. So @manncpt do you think we can make webinars with @khaleelkazi in German and English to share content like this? To learn and connect - webinars for newbies about the opportunity with HIVE?!
Glad to hear that I can help!
I also put together a long-form "webinar" style video as a complete guide to Hive for our LeoPedia site: https://leopedia.io/hive
Feel free to go through that if you're looking for a major deep dive into Hive :)
Posted Using LeoFinance
Okay cool. I don't have to much time because my focus is not really here on HIVE in life. But it's interessenting and maybe we can make webinars in German and English to share content ...
View or trade
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I'll call you Prophet Khal from now on.
The one who sees the future.
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