Investing on Hive (Sidechains)

in #hive3 years ago

Hive Engine (Hive Sidechain) Investments

As you can tell, there are many options on sidechain coins to choose from.
Hive Engine has a plethora of coins intended for various purposes. The most popular coins on there are typically ones with functionality related to blockchain games or pegs of value pertaining to a specific cryptocurrency such as the "SWAP.LTC" as you can see from the above picture. This is a token meant to represent and be valued and able to trade, as Litecoin. A "peg" means simply that the token is "pegged" at the value of whatever crypto it represents and you can redeem/transfer/sell/buy/trade at a 1:1 ratio and the "peg" is backed by the actual currency. I.E. - 1 "SWAP.LTC" = 1 LTC, each "SWAP.LTC" token is redeemable and backed by the "peg" and trades as if it were an actual Litecoin.

The pegs are great and all but the real return on your investment comes not from the volatility Hive-Engine has to offer on the mainstream crypto pegs it contains, but the many forms of passive income streams you can create and generate by holding/staking many of the tokens that exist on it.

For the first post on this account, I want to outline some of your best investments on Hive Engine.


1st - EPC

Epic Token
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EPC Token is used to gamble on Epic Dice's website but also has a very unique feature which allows you to earn DIVIDENDS based on how much people gamble, paid daily. This means that essentially you are holding tokens that represent a stake in the bankroll of the casino and based on how much people lose and your % of overall stake, you earn a cut of the gambler's losses and maintain the same house edge (Long-term winning strategy) that the casino does only it's in your favor as well! The value of EPC has also fluctuated greatly and the gap in the market is wide right now meaning potential to buy extremely low and sell extremely high in the future. Due to it's functionality, it's a very slept on token in my opinion!


2nd - SIM

dCity Token
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SIM token is used in the game dCity and is it's native currency. Similar to the EPC token, for holding it alone (Once you reach the correct holdings) you gain dividends, but these are instead paid in the form of daily pooled payouts and again, based on your holdings, funds are distributed across all token holders. You get paid in SIM AND Hive, so the incentive to invest here is pretty high. EPC only pays out in Hive, but it's payouts tend to be higher which is the only reason it's ranked higher on this list. EPC some days pays out 10-20x what SIM does, meaning that even if no one gambles for 10-20 days, you will have still ended up with the same return. It is very unlikely people don't gamble for more than a day or two, so consistently over time the EPC token has paid more than SIM, but SIM is very consistent in the payouts and shows up daily so ultimately it's a judgment call on your end. Gaming and gambling are two things that certainly aren't going anywhere though! :)


3rd/4th

SPS & DEC
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These are the native tokens to the Splinterlands game and although I'm not sure what use they serve directly, as Splinterlands isn't really my cup of tea... they have a functioning use in the game and server whatever purpose they DO serve, giving them value as there is clearly a lot of money invested and circulating in these markets! Gaming based tokens tend to do well especially when they're tied to games that have become popular and have a large player-base such as Splinterlands. These tokens are what I would consider more "volatile stable" as the prices tend to stay more stable with less fluctuation, but still fluctuate enough to be considered volatile. A fairly safe bet, imo, is that if you see them at 2/3 their peak value, it will at least reach 3/4 of that peak value, so there's surely money to be made. I buy these dips and sell them consistently and this @HiveInvest account will be used to start fresh in monitoring the lows and highs and tracking the profitability of them in the long run!


4th - SWAP.LTC

Litecoin Peg
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Ah, the aforementioned SWAP.LTC token. :) This token is one I've listed specifically as it is pegged on Hive-Engine, but in addition to it's "stable volatile" nature it has some serious swings of ups and downs that come almost routinely to some degree, based on the time frame in question. It's almost cyclic that when it hits half it's highs, it returns to 3/4, at, or above the previous highs it's hit. Considering it's impact compared to BTC and it's faster block times and less cost to send funds, it's undervalued in my opinion and soon to likely see new highs as people shy away from BTC in the long run toward more efficient and applicable crypto options.



Thanks for reading. Feel free to share opinions of your own and discuss the topic in the comments! :) Always open to new ideas/investments.

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LTC has yet to buy @ the rate I'm hoping for, we'll see! ;) If I have to, I will cop some paying @ market value so that I don't miss the next bull run!