Great Passive Income
Staking has become a relatively easy way for the average Crypto investor to generate some additional passive income. However, the recent “attack” by the SEC has shut down numerous “staking services”, leaving many to seek out alternative ways to generate the yield they had grown so accustomed to enjoying every month. I say monthly. However, most rewards are allocated in real-time.
It is somehow logical to consider that many will choose to withdraw their rewards on a monthly, or even weekly basis, as a form of additional income. There is however a silver lining to increased scrutiny from the SEC, and that is on-chain staking. Choosing to make use of an exchange or staking provider, in order to stake your digital assets does however require the surrendering of your keys.
We all know the saying: “Not your keys, not your Crypto”. Choosing to stake your own assets on-chain is a much safer option. However, some setups are a lot more complicated than others. This is where Hive acts as a great alternative, and enables users to utilize and benefit from the delegated proof of stake (DPOS) protocol. Staking Hive (HP) allows users to earn passively, as well as curation rewards that are in essence relative to each user’s “stake”
The curation rewards might not exactly be passive in nature. However, choosing to spend a little time each day with your morning coffee, in order to upvote a few quality articles can’t really be considered much effort, now can it? There are a few factors that will affect the curation APR. However, consistency and frequency play an integral part in determining each user’s APR.
Then there is Hive’s stablecoin, Hive Backed Dollar (HBD), which is backed by approximately $1 worth of Hive. Holders of HBD can lock up their tokens in savings, and subsequently enjoy an annual return of 20%. The unlocking process requires three days, which is quite reasonable, and a small price to pay for controlling your own keys. Essentially, approximately $1800 of HBD will earn investors $1 a day.
I think this particular opportunity is becoming a lot more attractive, especially as we continue to experience weakness within the banking sector. Every investment vehicle has its own inherent risks. However, due to the failures of TradFi, the risks associated with Crypto are becoming increasingly palatable for the average investor. In many cases, one could almost argue that the shoe is now on the other foot.
Maximizing the yield of HP, together with HBD is a great way to generate some additional “staking” income. I honestly believe that many will be shifting into HBD during the next cycle peak. Being able to lock in gains, as well as increase those gains quite substantially during the course of a bear market is a rather attractive offer.
Diversification is always a good approach to have, and Hive is yet another opportunity that one can leverage in order to create a little extra passive income, or a lot, for that matter. It all depends on the user. I have always been an advocate of utilizing as many opportunities as possible in the creation of passive income. Keep stacking, see you next time!