Looking Back

Last year, I published an article entitled, “HBD – The Most Reliable Wealth Creation Tool Of 2022”. This was of course addressing Hive’s stablecoin, which was clearly the best Crypto investment of 2022. All other DeFi investments suffered tremendous losses. However, being a stablecoin, HBD was able to escape the bear market carnage.

Sure, there were alternative DeFi opportunities with stablecoins such as BUSD and USDC. However, the yield was fractional in relation to the 20% APR on offer from HBD savings. This clearly puts HBD at the top of the list of best-performing Crypto investments of 2022, at least to my knowledge.

It’s little wonder then that I will be looking to scale into HBD when the market begins to top during the next cycle peak. I managed to accomplish a good exit during the last cycle and moved almost half of my portfolio into stablecoins when BTC was trading at approximately $65K. This cycle I am likely to shift in batches, for two reasons.

Firstly, two minimize the risk of not being in sync with the market, as well as monitor how HBD is performing at the time. I am sure many Hivers, and possibly, even outsiders will be looking to follow a similar course of action. I am planning to minimize the risk of missing out on market gains by utilizing a very specific income source to accomplish this strategy.

Bear Markets Are Demanding

Over the past few years, I have built a number of passive income mechanisms that generate passive income for me each and every month. Unfortunately, during a bear market, the valuation of this income drops significantly. However, many of these mechanisms earn in USD, which is a hedge to some extent. The only problem is that a bear market still affects income.

The general “mood” of a bear market still finds a way to chop away at your passive income. Simultaneously, everything tends to pick up in a bull market, and the mood now has the opposite effect on your earnings. That’s just how markets operate, even if your earnings are stable, and in the form of USD. The bear market is also demanding in other ways.

These mechanisms were designed with the sole intention of being accumulation models. In other words, a way to constantly accumulate Crypto without cost or effort. However, I have been using the majority of this income as disposable income during the bear market. Once there is a solid shift in the market, I will look at returning these mechanisms to their intended purpose.

Deployment & Further Creation

As I mentioned, much of these earnings are being earned and accrued in dollars, so the market condition doesn’t matter too much in terms of when I deploy it. There are however some of them that are accrued in Crypto, so there is room for appreciation, in those particular cases. Ultimately, I will be looking to consistently be moving much of this income into HBD.

Essentially, I will be realizing 20% of what I contribute to savings every year. This means that I am able to build another significant income model, while simultaneously having access to 20% of what I earn via these mechanisms each year. It’s actually less than 20% because it is not all being deployed at once, but rather, as it is generated.

I am likely to utilize an entirely separate account for this endeavor. Depending on the performance of other investments, I might give it an initial boost from alternative sources. Essentially, I am looking to funnel the majority of the income from my other mechanisms into HBD, in order to create a single mechanism of significant output. In other words, a mechanism that can operate as cash on tap.

Final Thoughts

The beauty of this idea is that there is no risk, the capital being utilized is passive in nature. Furthermore, I get to increase my mechanisms, while still having access to my initial structures. I can redirect them into other areas of investment at any time, should an opportunity arise. I can also split them if I like, choosing to continually send 50% to HBD, and the other 50% to an alternative opportunity.

This is why I have always been so adamant that people build passive income sources. It opens you up to way more opportunities. Why? Because you always have capital coming in… there’s a steady flow of capital to deploy that doesn’t require cost or time. However, the initial stages of developing these mechanisms can be somewhat demanding. However, once established, they run on their own.

As I said, I am sure many Hivers are looking to appropriate some type of strategy that incorporates HBD. So, let’s go for it! Wishing you well on your HBD Strategy… catch you next time!