Savings Strategy Adjustment
Hi fellow Hiveians,
Today I wanted to talk about the changing in my Hive savings strategy!
Saving Strategy Adjustments
About this time last year, I made the decision to save a little bit of the Hive that I've been powering up so that I could instead focus on saving that Hive as liquid and keep it around for the eventual green markets and potential bull run, whenever that may be. That has gone really well for me thus far and I've got quite a good stash of Hive waiting for some action! With the rising prices though, I did want to make sure to make some adjustments to that strategy to improve the other avenues.
I decided that I will be reducing monthly hive savings to 50, formerly 75 per month - given we are getting less hive per HBD now. It was a little bit of a tough decision because I was doing well saving 75 Hive per month but now that Hive is getting up there in price, I am making a little bit of a change and focusing on getting some HBD stored away in savings so that I can take advantage of that good APR but also not feel so bad because I'm not getting 3 Hive or more per HBD I am exchanging.
This HBD strategy change is something that I've done before, though only once. We haven't had interest for HBD savings around for too long which is interesting to think about, with how many of us look to that as something that has been around forever. Realistically, it's only been around 2 years I think? I remember when Edicted talked about how unique it was that we had a savings account on here but it was not utilized in terms of generating an interest like it does now. The savings accounts were always a function but more of a way to store some assets so that you don't spend it foolishly, than anything else.
With the advent of interest for these savings accounts now though, we are in a little bit of a pickle, though it's a good one. Do we save lots of HBD in there and get the nice 20% interest on it, monthly, or do we buy Hive instead so that we can grow our Hive Power instead? I have been doing a blend of both but it's a fluctuating blend and I like having the variability there.
When the price of Hive was pretty low, in the 30's and touching the 20's here and there, I was buying Hive the whole time, focusing only on 1 or 2 HBD per month in savings so that I could take full advantage of those rock bottom prices. It was a pretty great thing to be honest, because I was able to grow my Hive Power in my account quite considerably. That's got a lot of benefits that I think the 20% HBD APR doesn't offer but this post isn't focused on that aspect.
Now that we are getting more on the growth of Hive price, I know that I should adapt to it a little bit, and instead of buying lots of Hive like I normally do, I want to focus on depositing more of that HBD in savings to let it grow for the eventual fluctuation downwards. I am still buying Hive with the HBD, but I have started to deposit a fair bit more HBD into savings, doing 3 or 4 here and there if I can afford it. This is getting my HBD back into gear, with the number hopefully climbing back up closer to 100 where it hasn't been for a long time.
At one point last year when Hive price was around .30 or maybe .40 I took all of my HBD out of savings and bought Hive with it, getting 400 or so HBD and turning it into 1300 Hive. This was an awesome thing to do as it kicked my Hive Power quite a bit higher and created more of an opportunity for me to see what that was like. I knew that I would be doing it again, and that seems like the time now! I have that liquid Hive waiting there and I'll be buying HBD with it at specific intervals - maybe every .50 increase in the Hive price I'll use 100 worth of Hive to get some HBD.
If all goes well, I will be able to stash away a few hundred HBD during the bull run, and when it's over and if we get back to reasonable prices I'll have quite a bit of tinder to burn in order to get more Hive and get that powered up as well! I am certainly not going to be upset if Hive maintains a price point of 1 or 2$ but I don't think that's realistic right now to be honest. We shall see though, we are uncharted territory!
-CmplXty. Real human written content, never AI.
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Assuming that you vote your hp, hive only has to rise few cents to beat that 20% on hbd.
You get ~12% curation and staking rewards on powered up hive, so it only has to rise 8% to give a better than 20% return.
Hbd has the downside and hive has the upside.
The trick is knowing when which is the winning choice.
Congrats on powering up, that is a minority choice, nowadays.
I stopped voting those that dump.
It is a pain to check, but it beats slitting my own throat.
Hive has bled out enough, imo.
Oh yeah for sure dude, I agree with you there. I'm not making wholescale changes to my strategy here, but just making a minor adjustment. I was only dropping in the 1 HBD per month to claim, and make it a whole number (I'm annoying like that LOL) but otherwise I was putting it all in HP.
Getting less Hive per HBD, I'm going to maybe save 4 or 5 HBD per month but still primary focus is on Hive for sure. I am definitely long on Hive as my primary asset, but still trying to take what gains elsewhere I can, and the HBD one isn't too bad right now!
👏 Keep Up the good work on Hive ♦️ 👏
That's a good strategy. I don't know how I can totally increase my hive power but you have given me so much idea about managing HBD. This article is helpful for me and I think I will learn to follow your strategy. I'm not an always active user here but I'm trying to contribute something to this community. :D
Well being active is a great way to earn more hive power that’s for sure! I do get there are limits to schedule and all that but hive power is the important resource. HBD savings is helpful for sure but not as crucial as hive power is. I think overall a balance is important! Doing both is the best way to go forward.
What are the perks of having more hive power?
There’s lots! Higher voting strength is one of the primary ones - which leads to higher curation rewards for you. I’m at 36k hive power right now and I’m earning 8-9 hive per day just for returns on voting. It’s remarkable!
You can also use it to generate hive account creation tokens which is good, it allows you to create an account for someone for free instead of the normal 3 hive per account.
Then there’s resource credits and being able to delegate resource credits and hive power to others like curation groups for rewards.
Buying hive with the HBD is a good option to choose, but depositing Hive with the present APR rate has its own magic after the potential requirement is met. But everyone has his own policy to adopt and Hive really offers unique experience to all.
Good luck for the new personal initiative and wish you a good luck.
Indeed! There are a lot of different options, each with their own flavor. I used to have about 500 HBD in savings but I cashed it all out and bought hive with it, to power it up. I would like to build my HBD back up again to those levels but this hive power building is also important. I think overall a good blend is the best way!
I have really been having a difficult time since the beginning of this year due to a lot of financial needs and I am looking forward to getting balanced in the next few months and start my saving strategy
Yeah those things happen but hopefully you'll be able to dedicate some hive power and HBD to saving it so that you can watch it grow.
I think gradually building your HBD savings stash as Hive price steadily increases is a great strategy. It's well fitting with current market conditions, although there will always be corrections here and there.
Yeah I think I'm enjoying this little modification to it. I don't plan on ignoring hive power but I'm depositing a little more HBD than I was before. Having diversification is key!
Right! Diversification between the two is a good, since both are available to us and each has its own upsides.
Why do you think we are getting less Hive through the HBD conversion?
I noticed it too but I was wondering why
I never asked anyone though
Because as the market price of Hive goes up, so does the internal market. You can buy less Hive per 1.00 unit of HBD the higher the Hive market price goes. The more the Hive market price goes down, the cheaper Hive gets and more Hive per HBD you get.