Creating a financial goal to save a minimum of 100$ in HBD savings

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Avatar for bala41288
3 years ago

Today I was reviewing my portfolio and I noticed that I don't have enough stable coin funds at all. I have been wanting to do some savings in stablecoin for a very long time. Every time I keep some reserved funds in the form of stable coins, there will be another opportunity to invest in. This time, I have planned to use HBD as a good stable coin investment platform.

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I always wanted to have a decent holding of HBD in my profile. The reason why I had this thought initially was that the price of HBD was fluctuating and we don't know when there will be a sell opportunity and a buy opportunity to make good use of it. So I wanted to have some HBD in my wallet and be ready to grab such opportunities. Now things have anyways changed after HF25 making HBD more stable. But I still want to hold a decent HBD to get the maximum benefit from the APR that is distributed.

Why is stable coin investment good?

Before we even go to the details of the article, let's first talk about why it is important to save funds in stable coins. The fundamental reason for this is the fact that crypto markets are highly volatile. If we make a decent investment in any of the popular native coins, there is a high possibility that the market would crash, and the price of the coin we invested in can go down. This is how a huge crash happened a few weeks ago and the market hasn't recovered yet from that.

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Keeping the funds in the form of stable coins helps in maintaining the portfolio value and based on where we invest our coins, we will also be able to get a decent APR. There are a few centralized options available where we will be able to get a decent return on our investment. Crypto.com provides a 12% APR to our USDT investment and there are other places as well. In short, our stable coin investments will not be touched by inflation and we get more trading opportunities or investment opportunities during bear markets.

Why HBD is the best stable coin investment option?

I personally think that among the centralized options out there, I personally feel that HBD is the most decentralized and is also a safe place to invest in a stable coin. I would have not recommended this before the Hard Fork but the new Hard Fork 25 has brought us some nice opportunities where we get the below benefits from HBD savings:

  • HBD is always pegged to around 1$ making it a stable coin

  • The interest can be withdrawn in a short period of 30 days.

  • It takes only 3 days to unlock and get the funds back from the savings.

  • The current APR for HBD investment is 7% and it is likely to increase to even 10% which is a great market standard that even the centralized exchanges give.

Considering all the above points, I think that it is best to do our stable coin investments on Hive than doing it somewhere else or in an insecure exchange. If we do it directly on the blockchain, we get full control over our funds than trusting exchanges.

Financial goal this year to save some HBD

I have set a financial goal for myself this year to do some savings in HBD. I usually keep some decent HBD every month but most of those funds go for my bill payments and other investments. It is very rare that I could take out those funds and invest in something else. But in the last few months, I have been able to take a little amount of those funds and invest in other projects or other cryptocurrencies for the sake of diversification.

I have been wanting to save some stable coins for a very long time. I should have done that especially in the bull market but missed it. But I think it is never too late and I'm glad that half of the value from post rewards is distributed in the form of HBD. This is definitely enough to do investment. I'm going to be pushing some HBD to the savings in the coming weeks to make sure I have a decent value in savings that give a decent passive income.

The APR percentage is set by the witnesses and I see that most of the witnesses have set this value to 7%. Initially, when the APR was given for the normal HBD holdings the exchanges were also benefiting from that. Now that the interest is paid out only for people who keep the funds in the savings, I guess it will be fair to increase the APR percentage a little bit. I wish the APR percentage is set to 10% so that it is attractive for the DeFi investors from outside the Hive ecosystem as well. I personally think that 10% is a decent value and a good market standard because most of the other platforms also give only that much.



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Avatar for bala41288
3 years ago

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