Hive & Leofinance - The Built-In Hedge

By Sapphire | Sapphire Crypto | 24 Mar 2022


The Risk Is Real

Investing in Crypto is a risky move, especially if you go about it all wrong. A lot of people often approach me in my hometown, asking me what they should buy, as they are looking to get into Crypto. My answer is always the same and to be honest, I think many find it to be a bit boring. Firstly, my stance is always that I am not issuing investment advice but what I would personally consider the safest approach for someone new to the space. I personally believe that 90% should be in BTC and ETH with a 10% allocation to alts. You have to be realistic! Someone new to Crypto has no idea of what is going on. The risk is largely reduced by this approach due to two main reasons. Firstly, Bitcoin and Ethereum are proven and established. The market has sealed these two assets with approval and support. Even in the event of severe corrections, these two coins are very likely to recover in a reasonable time frame. Secondly, alts don’t have that dynamic going for them. Altcoins often overshoot their fair market value and seldom see all-time high levels again.

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There is also the chance that the project only manages to secure limited attention from the market and never ever goes anywhere in terms of adoption and success. This however is not even the worst outcome. I have seen projects crash 99% from the peak and basically become worthless. These projects are often abandoned by the devs and other team members. The token is still tradeable but there is no project, no value, and zero utility. In essence, a worthless coin or token. When a coin becomes worthless it also serves to confirm how valuable a coin like BTC actually is! Those who do not understand how value can be assigned to a digital asset will not get this.

Where Am I Going With This?

Investing or taking part in the Hive economy has a further hedge that is actually a lot more attractive than many comprehend. Yes, it is an altcoin and susceptible to volatility and significant loss but it also has something else that Bitcoin and Ethereum do not have. This is the structural design of Hive which enables further growth via curation and content creation. Yes, HP is in many ways similar to a traditional staking reward but it is not capped. Hive Power, along with reputation assigns value and weight, which when exercised are not limited. Provide a valuable contribution in the form of curation and creating content and your account can grow in value. This can even take place when the price of HIVE drops, as you will be increasing through earning HIVE and HBD.

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The principle is exactly the same with Leofinance and other tribes. This puts the ball in your court and actually gives you an upper hand as a committed community member. It can actually adjust the dynamic rather significantly. I am guessing there will be those who will battle to interpret what I am about to Unpack.

You Are The True Value Of HIVE

This is not merely a play on words or a “catchy” subtitle but a reality, if only to a select few. It is actually a simple case of “you get back what you put in”! To the degree that you contribute to the community via curation, is the degree that you realize rewards in HIVE and HBD. This is exactly the same for those producing and posting content on the platform. Those who contribute value ultimately withdraw value from the ecosystem as well. What this means is that in actual fact you are deciding the value of “your HIVE” by the way in which you interact with the ecosystem and community. Once again, this will almost always require a level of hard work and dedication.

At the end of the day, quality makes the strongest demand in terms of HIVE and HBD. Those consistently extracting value are also those consistently providing value. Their HIVE or LEO has a much greater value than the average user because they are contributing much more than the average user.

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It’s Not Merely A Case Of Contribution

It’s a well-structured approach of not only consistency but also quality. Getting this combination correct will ensure your HIVE and LEO holdings constantly rise despite what the price may be doing. Come to think about it, this is actually an amazing hedge that is unparalleled when it comes to efficiency. The Hive ecosystem truly does offer a very unique and special opportunity to those who seize it and make the most of it!

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.

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Sapphire
Sapphire

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice. Sapphirecrypto.org


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.

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