Today I am more than willing to lock my inner William Shakespeare. So, I am sorry that my written piece may not sound sweet, poetic, or intellectual as we will only talk about business. Most importantly, it’s about you, me, and all the creative content creators of Hive Blockchain who also happened to be Traders. The information is more valuable than showing off my English skills today. Simple communication between us.

So, what is that we all should be aware of? I think many of you already know that pretty well. So, it is for people like my buyers and those who have failed to read the market yet. So, first, jump to the scenario.

A well-wisher of mine tipped me about Hive price going down more than expected. So, I opened my wallet without any delay, and I was shocked. It’s been around a month since I joined this lovely community, and I never saw Hive market value this low.

Hive Market value

Now it has gone even further!

Hive Market value

Hey, don’t rush. Hear me out.

Like yours, my decision was also as clear as crystal about buying hives. Without any further delay, I used my only remaining 7.113 HBDs to buy 8.815 Hives.

Transaction

I was upset; why the hell did I convert my 50 HBDs earlier. It took only 2 minutes to buy Hives. Almost everyone was trading.

I sat with a pen and paper to understand the equation regarding when I have to buy or sell. You won’t believe what I just found! I realized it’s not about the lower price of Hive. We have to focus on the distance between Hive and HBD.

Let me clear you. When the price of Hive is lower, HBD is higher, and the Distance is satisfactory, that’s the perfect time to buy Hives.

For example :

Let me help you understand it by imagining we will use 50 HBDs while Trading

Low Hive Value

So, Distance = 0.942-0.795

= 0.147

50 HBD would be = 0.147*50+50

= 57.35 Hive

High Hive Value

For this case

The Distance here = 0.987-0.816

=0.171

Here, 50 HBD would be = 0.171*50+50

=58.55 Hive

I hope buying Hive is clear to you.

But you are not done here yet. You also have to convert those Hive into HBD

So, When to do that?

Remember, we calculated the Distance between Hive & HBD. Here we are also going to do that but in reverse. You can be profitable if and only if the price of Hive is high, HBD is low, and the distance is lower than your buying times.

For example :

At the Low transaction, the Distance was 0.147, and 50 HBD was converted into 57.35 Hive

So, while selling Hive we will be required a distance less than 0.147

Suppose now the Distance is 0.10

Then , HBD = 57.35-57.35*0.10

=51.615

So, you profited 1.615 HBD

In short, while selling Hive, the Distance should be less than buying times to be profitable. Even if the distance remains the same, you will have to count a loss as there is a minimal trading charge.

Charge

You are working hard to gain these rewards, and people like us are helping each other; nothing should go to waste in respect of each other. If you know something more interesting, let me know in the replies.

Happy Trading