Always Keep Liquidity On Hand
Always Keep Liquidity On Hand
Liquidity in crypto can be a number of things such as providing it to a swap program or DeFi program in which you earn reward fees for doing so. However in this post I'm going to be talking about keeping liquidity for yourself which I feel is often times overlooked. In fact it's a lesson I've learned myself over the years.
What Is Liquidity On Hive?
Liquidity on hive is making sure you have liquid assets be it HBD or Hive itself that are not staked or in the savings. For staked Hive it takes 13 weeks! to unstake it all that's a long time and a lot can happen in that time frame. For HBD it's much easier on you at 3 days to unstake it. However 3 days is still 3 days.
Other liquid assets could be community tokens such as the LEO token for LeoFinance or any number of other tribes. Are all possible liquid assets you could have here on Hive.
Now I understand that you won't be earning any curation rewards on the unstaked assets however hear me out.
Why It's Important To Keep Liquid Assets
If you're anything like me you are always looking around for great deals and a way to make more profits. As a recent example I've been playing a lot of WAX games lately and one thing is you can make some serious profits not by playing the game but by buying up deals on NFT game cards and reselling them (or even putting them to use if you want) Often times people make mistakes of listing a rare card at a uncommon card price. Or a leveled up card at a non leveled up price.
This happens mainly because people don't check things before listing and simply go off the "suggested" price the market is telling them for that card type. This is almost a sure fire way to make hundreds of wax each day but you need thousands of liquid wax on hand so you can buy these deals as soon as you see them.
By not having liquid assets you are now wasting time trying to sell other assets to accumulate liquid assets of the token you need to buy the item. This often times leads to missed out deals as someone else snatches it up.
Moral of the story: ALWAYS keep some liquidity on hand. Personally I keep 20% of everything in crypto as liquid so I can quickly move things around. I also keep it spread out so if one blockchain goes into maintenance mode I have another I can use. This redundancy helps me take faster, low cost or feeless trades to grab up such deals and push me towards my goals faster.
Question: What assets do you like keeping liquid for yourself? Why did you pick those? Low fees, steady price or just an extra. Let me know in the comme
Posted Using LeoFinance Beta
Very solid advice! Nothing worse than seeing a deal and having no liquid assets to move. I keep liquid WAX on hand for nfts and I keep liquid HBD for different token opportunities on Hive Engine.
Two solid ones those are my mains as well however I've been keeping more liquid swap.hive as of late and saving the HBD. A part of me wants like 100,000 HBD and earn 10,000 a year off of it lol seems pretty sweet honestly. It's going to take a while to stack up to those levels! Freakin LOVE Wax though I could spend all day on there.
Shit you're a lot closer than me on that one! That's pretty incredible to think about honestly. People that aren't in crypto couldn't even comprehend. WAX is gunna take over. So much happening over there and people still not paying attention somehow. Have you seen the recent activity? It's nuts
Yay! 🤗
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Yay! Such a basic yet necessary point to make in the crypto world! Things happen here within SECONDS, and you need to be ready for them!! Thank you for your wonderful post! :) You've been manually upvoted by rosiew from 1UP!
I totally agree with you. I learned this as well. In the quick living crypto sphere it's very important to always have some liquidities available. For myself I always keep some Hive, swap.hive ready for things. I also have about 1000 WAX for necessities :-). These assets can be moved around very quickly and cheaply.
Posted Using LeoFinance Beta
lol I like how 1,000 wax is for necessities ;) haha
This is what I love about tribal dex. I pair hive there with dec. If I need quick cash it takes seconds to pull it, swap it for ltc, and shoot it out.
I can go from hive to spending fiat in just a few minutes now.
The userfriendliness has increased amazingly in the last months and it's true, thanks to hive engine, you can send almost any token to a big exchange and swap in for fiat.
When cub defi launched I was super intimidated by it, and had difficulty navigating, but I tried again recently and the experience there has improved tremendously as well.
a piece of valid advice!
Posted Using LeoFinance Beta