Things to keep in mind while trading or holding Hive
Cryptocurrencies are giving an opportunity to both hold and trade. Some people who are good with trading find trading a better revenue source than just holding it in their wallets. If you happen to choose a good coin or token that would give a great APR and if the price of the token or coin is also very stable, then maybe holding is better than trading. But if you have enough time to observe the market and do the buy and sell game, then trading is probably the best thing for you.
When it comes to hive, there are some predictions that we can easily make. Especially when to buy and when to sell. Most long-term hive users will know the right price to buy or sell. This gives us confidence for both holding and trading. If people are going to be long gone by just making their investments sleep and generating income, then maybe keeping it in savings is the best move. There are also some risks involved here which I would like to describe in detail.
Trading can have risks
This is one of the biggest reasons why people avoid trading. I personally avoid trading too if I'm not sure about the status of the market or if the price fluctuations are not clear. I do some experiments from time to time and it has given me good experiences in the past. Most of the time I do the experiments only on Hive. The main reason is that I'm familiar with Hive and also comfortable for me to understand the risks and handling the risks if there are any.
I usually think that if I end up purchasing Hive while trading and if the value of Hive goes low after that, I always think that I'm happy to do an investment and wait for the long term for the price to appreciate. But at times I might sell and see the price pumping after I sell. That is when I think that I had to anyway book my profits and probably that happened. This is how I repeat my trading cycles. There are definitely risks if I don't think of things this way and buy high and sell low or sell high and buy higher than that.
Holding in HBD is probably better
When it comes to holding, I think more than HP, HBD is better because the APR is very good over there. We might be able to get only half of the APR if we power up. This also happens only if we use our curation more efficiently. There is also a high possibility that there can be bad actors who would downvote the posts we are voting and that can affect the curation rewards.
There is also a small risk in holding the HBD in savings. The chain gives 20% APR for now but that may not be the case all the time. There is a high possibility that the APR value might change in the future based on what the witnesses decide. I guess we have to plan the holding strategy only based on this I guess. If the HBD APR is going to stay like this for a longer period of time, then it will be beneficial for someone who cannot do proper curation. They can just power down and probably convert their HP to HBD and keep it in savings. But yeah it is up to the individuals to decide.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
Vote@balazas aHive Witness
Vote@kanibotas aHive Engine Witness
I was just talking with a friend about this today. He bought some hive to transfer to hbd. Apr is very good now, but like you said, there are always risks. We can only hope for the best :) I might put some of the April earnings into saving at the end of the month.