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Three Ways to Earn Passive Income on Hive

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Avatar for The.Part.Time.Economist
2 months ago

Although many of us know Hive as a censorship resistant, blockchain based social media site, it can also be a great way of earning passive cryptocurrency income even if you don't write content. In today's post, I'd like to share three ways of earning passive cryptocurrency income on the Hive blockchain - even if you aren't an author or creator!

 

Keeping It Simple

Lets face it, crypto can be volatile, and although many of us like to earn rewards and interest from lending crypto, one big issue with lending traditional cryptos like ETH or BTC on DeFi is that the huge price swings can make many investors nervous. One of my favorite things about earning passive crypto on Hive is that you can lend the HBD stablecoin with 10% APR. Earning 10% on the HBD stablecoin is considerably higher than the measly 2-3% that coins like Dai, USDC, and TUSD are earning on DeFi protocols like compound. Although the 10% APR on Hive is still a bit lower than the 12% that you could get by lending stablecoins on Nexo, its important to remember that the higher APR of Nexo comes with a price - namely KYC. For those of you who are looking to lend a stablecoin while actually earning an interest rate that outpaces inflation, Hive's HBD savings feature might be something to consider. 

Delegating for Curation Rewards

In addition to lending the HBD stablecoin, it is possible to earn passive income from your Hive Power. Just as you earn curation rewards for upvoting quality content yourself, it is possible to delegate your Hive Power to a curation account that will upvote on your behalf. In contrast to actively searching for and upvoting high quality content (which I consider active income) delegating your Hive Power to a curation account is a "set it and forget" form of passive income.  The actual delegation process is EXTREMELY easy and all you have to do is log in to your wallet and select the account you want to delegate to. In my experience, it has been MUCH harder to find an account to delegate to vs the delegation process itself. For those of you who are interested in finance, economic, or crypto based topics, delegating to leo.voter (with a 16% APR) might be for you. 

Witnesses and Block Producers

One additional way of earning passive income through Hive is by voting for "witnesses" which can be thought of as the block producers on the Hive blockchain. Its possible to vote for witnesses on either PeakD or Hive itself, and although the process itself is simple, I unfortunately wasn't able to find a lot of information on voting for witnesses. Judging by this screenshot, it looks like the APR for voting on witnesses is around 10% and you can vote for up to 30 witnesses at a time. If you don't want to manually select your witnesses, you have the option of delegating to a proxy account which will vote on your behalf. Unfortunately, I wasn't able to find how to proxy vote on PeakD, so you'll have to use Hive itself if you want to vote for a proxy.

Although its easy to confuse delegating and voting for witnesses, I want to point out the difference. When you delegate, you are allowing another account to curate and upvote content on your behalf. When you vote for witnesses, you are choosing who gets to write the next blocks on the Hive blockchain. 

One Small Complaint

Although I was generally impressed with the different ways of earning passive income on Hive, I did feel that it was difficult to find good delegation accounts of good proxy accounts for witnesses. In contrast to WAX which lists the top proxies for block producers in an easy to find location, I found it quite tedious to manually search for curation /  delegation accounts and couldn't find a good reference list. If anyone knows, feel free to share.

Conclusion

Although there are a lot of crypto-based social media platforms, I think that Hive does a great job of integrating DeFi and passive income into the platform itself. I like that there are ways to earn passive income "in house" without having to transfer to a third party DeFi protocol. I want to finish out this post by saying that I am certainly NOT a Hive expert, so this should not be considered financial advice at all. As always, thanks for reading!!

 

References

https://hive.blog/hive-148441/@sacrosanct/why-do-i-set-a-proxy-in-hive-blockchain-answering-in-quora

https://leofinance.io/@leofinance/how-to-earn-a-16-roi-on-hive-power-and-support-leofinance-s-new-leoinfra-onboarding-system

https://wallet.hive.blog/~witnesses

https://peakd.com/me/witnesses

 

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Avatar for The.Part.Time.Economist
2 months ago
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