You see that "save money so you can jump on investments"? It's easy to talk about it, and even start saving with this goal in mind. Until it's time to remove the saving and finally invest in a project you are enthusiastic about. Your heart will be thudding even with all the low risk that is involved. They call it loss aversion. Even when you know the money is still yours, your heart still shatters.
Right now, that's the way I am feeling. In the last few days, I have been reading about the pHBD-USDC pair that is aimed at providing liquidity for HBD. And I had been battling between choosing stability by allowing my HBD to stay in my savings and removing them to jump on the LP train.
The thing is I am aware that there is stability with leaving my HBD in savings because I'll be entitled to a 20% APY and that's a sweet interest rate compared to other financial institutions that I am aware of. But you know why the new investment is juicy? because the interest earned is higher. I guess a higher interest is often pegged to such an investment portfolio because of the risk involved.
You should know that the risk associated with the pHBD-USDC pair isn't that high in my opinion. Since pHBD is backed by our trusted HBD, this should be considered low risk, or I'm I wrong?
Trust me I have been dragging the thoughts of moving my HBD out of savings and joining the LP, not basically because of the interest but because for the first time I'll be living on Hive, the second lesson I learned in personal finance. The first lesson had been to keep a certain percentage of my earnings as payment to myself. On this chain, I started by always leaving 10% of my earned HBD and trying as much as possible to live off the rest. Until, taskmaster, advised that I should increase it to 20% so it could compound quickly. I did that and the results were massive. I have always been grateful to him for that advice.
Right now, I am moving into the second lesson which had been to take the saved funds, and invest them so it can produce more children. Before today, I had been trying to understand if leaving HBD in savings was a good call. Every day when I learned about my finances, I keep hearing no one gets rich through savings alone. And that one needs to move from saving to other investment portfolios.
The witnesses must have been reading my mind when they moved the interest rate from 12%-20%. This movement solidified my decision to keep my HBD right where it was. As it stands, I guess I have to retrace my steps and move up the ladder of those financial lessons. This means I'll be moving my HBD out of savings in a bit to get into pHBD.
In my heart of heart, I know my HBD is safe as pHBD because I can always wrap and unwrap depending on the situation. What I am saying is that I can always redeem the pHBD to HBD whenever I want. I am currently experiencing a loss aversion dilemma. But with all the security that has been taken into cognizant by the Leofinance team, my risk aversion dilemma is gradually reducing.
Do you know the juiciest part? It's that high risks equals high-interest rates as a rewards scenario. How? Converting my HBD to pHBD means I'll be getting more than the 20% APY offered if I save. Instead, I'll be getting a 45.82% APR (compounded = 58% APY - or nearly 3x what I can earn on-chain), according to the team.
Right now, you can pool your pHBD-USDC and earn a 45.82% APR (compounded = 58% APY - or nearly 3x what you can earn on-chain). pHBD is 1:1 Backed with HBD On the Hive Blockchain | Mechanics Deep Dive
From here, I'll continue moving my 20% earned HBD to Hive savings to build another buffer. Who knows in the near future, there will be other projects I can jump on. By then, I would have accumulated lots of interest to play the investment game. Wish me luck.
Are you experiencing loss aversion too? I think you should snap out of it. You should be worried about your fiat currency which is not backed by a substantial amount of Gold as speculated instead of worrying about pHBD which is backed by our trusted HBD. Be a part of this financial learning curve and experience. Get in today.
Posted Using LeoFinance Beta
I wish you luck because if I should say I understand everything here, I am lying. Lol
The only thing I am doing here is saving 20% Hbd as you have suggested to increase the percentage of my savings if I think time is against me and besides, I don't have any business to invest on for now as I would do that later in the future. But as it is, let the interest keep yielding till I am fully ready.
Hahaha.... Princess, babe, don't make me laugh, I am grateful you understood a bit of it.
Now, you have given me an idea that I have to structure my financial posts so my friends could understand and be a part of everything as we have always been from onset.
I am sorry for this one. I'll try to simplify it better next time. 🥺
You should be worried about your fiat currency which is not backed by a substantial amount of Gold as speculated instead of worrying about pHBD which is backed by our trusted HBD — where is the lie in this ?! I see none . For me ,saving up fiat currency in this traditional banking systems with little or no interest rate and high bank charges for simple transactions is just being penny wise , pound foolish .
I am glad you agree. Traditional banks do not give such high interest. Thus, saving with them is clearly a mistake as it will only depreciate with time as a result of inflation.
You know this !
Maybe I will be needing you to be my tutor because I still don't understand or know anything around here
Hehehe... What do I even know. I am learning as much as you are. 🥺
To be honest, I can't fully wrap my head around these things, I don't understand.
Just like @typebox said, I'm currently trying to find a way I can move my fiat to somewhere it can work as an investment for me.
Honestly! That’s just the way to go !!
Well then, let's all do it. Beat inflation at its own game.
You already know that Hive gives you the avenue to do that. HBD for instance is a great place to start because of the stability that comes with it.
Yeah, I thought of hbd anyways
It's a great place to start in my opinion. 🥰
Nice financial mentality @iskafan I see a lot of pointers from one of my favorite books (The Richest Man in Babylon), if you haven't read the book, I recommend you do so. Thanks to your post, I'm hearing about the pHBD for the first time, having been away from hive for a long time...I guess I have a lot of catching up to do. Keep up the great work friend.
Lol. I have had different copies of that book. Same information but different colors because I kept borrowing it out and never got it back. So, yes, I too recommend the book for anyone starting out on the path to financial freedom.
I noticed. It's great to have you back. Thanks for visiting. 💚💚
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Thanks hivebuzz 😍
You're welcome @iskafan 😊🌹
Dear @iskafan , It is as if you are now acting like a financial expert. I trust your argument. By the way, I still do not have an account to trade cryptocurrency.
Hahaha, I am no financial expert, this is only one of my financial journeys.
What do you mean?
Dear @iskafan, I still don't know how to trade cryptocurrency.😅
You mean you have no idea how to exchange your Hive to USDT? Or sell to a friend on Hive?
Yeah, I currently do not have my personal account to trade or cash out cryptocurrencies. So, I can't understand the two ways you said.😅
Holy shit!!! I am sure tarazkp will help you get around it when you are ready. It seem you are familiar with him.
Dear @iskafan, For now, I enjoy talking with attractive foreign friends like you more than trading cryptocurrency. I will slowly study the trading of cryptocurrencies.
I wish your business success!
Thank you for your kindness.😄
Until recently, my priority had been accumulating HP. The 20% APR was enough for me to move out of liquid HIVE into HBD in savings.
I used to be all over the place when it came to Layer 2 tokens. These days, LEO is my preferred H-E token and I still use tags for POB, CENT, ARCHON, and (when tags permit) PAL and BHT. For the vast majority of Layer 2 tokens in my wallet, they are LP Rewards for participating in 2 diesel pools (SWAP.HIVE: PIZZA and SWAP.HIVE:PLN). These offered me at the time an insane number of tokens for LP Rewards, and these 2 pools have been good to me.
Recently I took the plunge into Cub Finance to buy CUB to place in a Kingdom. It's been hitting ATLs recently, but that just means that CUB is on sale for the days I can buy it. Last month I sold my LP Rewards for SWAP.CUB to then move over to Cub Finance. I may need to modify this strategy to make sure I set aside some LP Rewards for HBD as well as SWAP.CUB. If I can add more liquidity to the 2 pools, then I'll earn more in LP Rewards. That's the plan, anyway.
Speaking for myself, my crypto priorities are CUB and then HBD in savings. To assist in both I use diesel pools to accumulate LP Rewards.
At the moment I'll stay out of the pHBD:USDC pool at PolyCub only because I'm still trying to get a handle on Hive Layer 2 and Cub Finance (the foundation for future CUB projects such as PolyCub). Once I know what I'm doing, then I'll join you at PolyCub.
What kind of posts does these tags allow?
Do you need a lot to get into the pool?
Gosh, you have a lot figured and mapped out. It gives me shivers that most of the things I read here sound so foreign to me.... Lol
I guess I have to get involved somehow to be able to understand even the basics.
Thanks for sharing this accumulation journey of yours with me. I appreciate. 💚