Building Passive Income with DHEDGE drips

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Written by

A Crypto Hodler playing with FIRE

2 years ago

In community: Cryptocurrency and Blockchain(7b7f)

Topics: Passive income, Investing, Hive blockchain, Hive, Income, ...

Today I will look at DHEDGE drips as part of increasing my crypto income. What I like about DHEDGE is that it is building up a passive income stream for me and has a really cool sounding name. Currently, I have HBD as a passive income source which is directly on Hive, but there are other options on the second layer tokens in Hive-Engine.

HBD currently returns 20% in HBD which is a fantastic return and getting this high rate doesn't seem to be possible with layer 2 tokens. Or is it?

Current passive income tokens that I have are:

DHEDGE
CTPSB
SPI
LBI
BRO
EDS
AWESOME
MEOWLEO
UTOPIA
INDEX

Yes, I have been buying a bit of everything!

Other passive income tokens that I have are miners such as:

LENM
EDSMM

There are many other miners but I didn't get any yet.

How do they work?

To invest in them, you need to first transfer some Hive to the Hive Engine. This turns your liquid hive into SWAP.HIVE which is the same as liquid hive but in the Hive Engine.

Once you have your SWAP.HIVE, you can then look to buy some of the passive tokens.

Today I am going to look at DHEDGE and will follow up with the other tokens in the following weeks.

DHEDGE

According to the latest report from DHEDGE, the returns are 13,98% for the last day. But in truth, they seem to vary between 12% and 19%.

DHEDGE drips 7 tokens (previously I have seen it has been up to 18 tokens). These are:

HIVE
ARCHON
DHEDGE
SWAP.STEEM
BRO
GAMER
UTOPIS

Important to know is, that you must hold at least 10 DHEDGE to get any of these drips. There is also no whitepaper that I could find. You can however join the discord channel and chat with other holders.

source

Currently, it is trading in a range between 0,12 and 0,149 Hive. The owner of the project is taskmanager and I haven't had any contact with him personally.

Investing in Hive layer 2 tokens carries extra risk which I have laid out in the below chart:

Here you can see the level of risk increases with each stage (although you could argue that holding fiat is the riskiest of them all!). So to hold HBD would be in the blue box and much lower risk than DHEDGE. This is because there are 2 fewer counterparties involved than with HBD. HBD is held on the first layer of Hive.

The extra risk comes if there are problems with those running the Hive Engine if they stop and then you are stuck. Then the next extra risk comes from the project owner of DHEDGE and the tokenomics involved. Therefore it is important to understand as much as you can about the team behind the token and the tokenomics before investing.

My Returns:

Based on my calculations, the returns given in the daily emails are quite accurate and can vary depending on the price of the drips that you get. As you are getting many different tokens, it is more work and can take up some time before you have a decent stack in any of them to do anything with. The easiest option is to sell the dust or just stake them and compound until you want to cash in.

Compared to HBD, the returns are not so good and it comes with extra risk. However, I like playing with fire and collecting different tokens, so I will add DHEDGE to my portfolio. I need more passive income tokens and it helps with some extra diversity. Although it is not as high as HBD, it could still be interesting to hold for the different tokens. Let's see how it develops.

Thanks for reading.

Please note this is not investment advice.