Be careful with stable coins
Sometimes we think that stablecoins are the best investment in the crypto world. Not all stablecoins are as good as Hive and offer 20% APR for your investments. But I would say we shouldn't rely too much on the stable coin as well. It is not easy to predict what can happen to a coin. Even USDT and other popular stable coins have lost their stability in the past and have performed very badly during a market crash. It takes a lot of time to get the stability back.
I'm not trying to be negative here but in order to keep the funds safe, diversification is the best solution compared to keeping everything stablecoins. Someone recently had a conversation with me asking which one is better either Hive or HBD. It was a long conversation but ultimately what I told them was to keep the funds both as Hive as well as HBD right now the price of Hive is very low and we all know the actual value of Hive and how it can have a sudden pump. But it is wise to keep the funds both in the form of HBD as well as Hive.
Not all Stablecoins are actually stable
The value of a stable coin is also based on the other coins and several market conditions. We cannot guarantee that a coin can be perfectly stable. We all know what happened to UST recently. Many people lost so much of money from UST. They keep saying that they would do something to recover the price back but the situation is totally different now.
I have seen HBD being stable in the last 3 market crashes. Even USDT struggled a little bit but the price of HBD was very stable and did not go below 90 cents and it again recovered back to its pegged value. That doesn't mean that it is safe. Maybe compared to all the stablecoins available out there, HBD is a little more stable and we can bet on that. But the only better solution is to diversify our assets on multiple stable coins or multiple coins.
Diversification is the best thing
For any investment, diversification is the best thing. Even if we are planning to have a passive income source, it is always better to have multiple passive income sources. We cannot say what can happen to those passive income sources. Diversification helps in such a way that even if one income source is affected, there will be other sources that can back us and help us recover.
Investing in multiple stable coins is also good considering the fact that the coin we are choosing is really a good one. We shouldn't be investing in coins that are centralized and are subject to market manipulations. Those coins can be high risk. I know for a fact that HBD is decentralized to a greater extent and has proved to be good during previous market crashes. But the number of exchanges in which HBD is listed is very less and the liquidity problem is always there. We have to check these parameters for other coins as well before diversifying.
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