How Do You Make Money With Hive? Part 2

in LeoFinance4 months ago

How Do You Make Money With Hive_ Part 2.png

Welcome to part 2 on my series about how to earn money on Hive. If you haven't read Part 1 yet, then I highly recommend reading that one first.

As I said in Part 1:

"With the recent explosion in DeFi, the ETH price and many other assets in the crypto space rising in terms of both valuation as well as attention from the media, I feel it’s more important now than ever before to explain the value proposition of HIVE."

There is a lot of attention on the space right now with people looking at the latest highs for Bitcoin, Ethereum and many of the DeFi projects that have blown up over the past few months. I'm excited to see so many new entrants into this space, but I also know that this is the time to step up and tell them about Hive.

We might seem like broken records talking about this on our platform, but what I've learned from building LeoFinance is that you never know where people will come to learn about Hive. They may find your article on google when searching for how to make money online or they may come across a tweet or a linkedin publication that you've made. The best thing we can do as community members on Hive is spread the word any which way we can.

Without further ado. Let's jump into more ways to earn cryptocurrencies on Hive. In part 1, we covered curating/creating content and in today's post we'll cover delegating Hive Power for passive yield and trading HIVE/second-layer tokens :

  1. Curating Content
  2. Creating Content
  3. Delegating to Projects For Passive Yield
  4. Trading HIVE and Second-Layer Tokens
  5. Using Second-Layer Tokens
  6. Building a Business/Community
  7. Freelancing on Hive
  8. Blockchain Gaming

Delegating to Projects For Passive Yield

Delegation is an extremely important and also confusing feature of the Hive blockchain. There are two "forms" of the HIVE cryptocurrency:

  1. Liquid HIVE
  2. Staked HIVE (called HIVE POWER)

When you stake HIVE as HIVE POWER (HP), you can do a wide array of things with that power. The one we covered before is probably the most popular: curating content. The runner-up (in terms of popularity and % APY) is delegation.

Delegating your HIVE POWER means allowing another Hive account to utilize your power for curation, account creation, resource credits, etc. By delegating HP, you are giving that user the power of your stake but not your actual stake itself.

The key component of delegation is the ability to essentially hand over the voting rights of your stake to another account, but never lose access to your actual stake. The HIVE cryptocurrency held in your private keys never leaves your actual private keys.

Who Can You Delegate to and What Should You Expect in Return?

There are a lot of different projects, individuals and communities on this blockchain that desire HIVE POWER leases. Many will pre-establish an APY (annual percentage yield) with you in exchange for the voting rights of your staked HIVE.

One of the most popular methods for delegating stake is the use of https://dlease.io. This application allows HIVE POWER stakeholders to fulfill the orders of other Hive users/projects who have posted a lease request. In their lease request, the user requesting HP will include how much HP they want to lease, for what time frame and for a preset annualized rate.

If you head over to dlease.io, this is what you'll find on the open market page. The APY can fluctuate based on demand, but it's almost always hovering between 12-18% APY. Other important metrics are the number of active leases and also the number of openly available requests to be filled.

If you're a new or even experienced HIVE POWER stakeholder, I recommend exploring the ability to lease a % of your HIVE POWER. Some users may choose to lease out all their HP, others choose to do a portion of it and others will choose to do 0% - opting to keep voting rights of their HP to use as they see fit.

Note: leases can be cancelled at any time by the stakeholder whom filled the lease request. As an HP stakeholder, you can revoke a delegation whenever you want. It takes 5 days to receive full voting right access back on your HIVE stake.

Projects:

Projects are one of my personal favorites to delegate to. Some projects pay out high yields, others pay out lower yields. It depends on the purpose of the project and also the founders and how they decide to redistribute rewards.

When you delegate to a project (and this is what I enjoy about it), you are actively choosing to support the mission of that project. So if you delegate to something like @ocd or @curangel, you are choosing to support those initiatives in manual curation of quality content on this blockchain.

As a benefit of your support to those projects, they'll pay you a pre-set APY on your HP delegation. If you stack up delegations to projects against delegation to dlease requests, you'll likely find that projects pay out slightly lower APY's than lease requests. This is perfectly normal (and not always the case).. but the prospect of supporting a good project and earning a good APY draws many Hive users to project-based delegations as opposed to delegating to Dlease requests.

Since we're here and talking about this, I'll take a minute to plug the LeoFinance curation project: @leo.voter is the HIVE POWER curation account that the @leofinance project uses to support quality content that is posted from our LeoFinance.io Interface. We pay out a 16% APY, but the interesting part to the rewards is that they are paid out in our native token (LEO) as opposed to HIVE.

It's a way to earn something different than HIVE while supporting our project. Many delegators have said that their returns on HP delegations in exchange for LEO far outpace that of HIVE-distributed rewards because of the appreciation of LEO.

Trading HIVE and Hive-Based Tokens

I'm a relatively active trader in the crypto space and I've found HIVE to be a great candidate for active trades. The spread on HIVE is often arbitrage-able itself and then there are also wild swings in the price frequently.

These "big candle wicks" allow traders like me to set limit orders both below and above the market price and wait for a whale to either come in and buy a bunch of HIVE (running the price up to fill our sells) or dump a bunch of HIVE (dipping the price down to our bids).


with the recent rally in BTC, HIVE has dropped quite a bit which has filled >20,000 HIVE worth of buy orders that I had set. I used some of that HIVE to set new sell orders to catch a rally on the HIVE price and I used the remaining amount to power up and generate APY while I wait for a price recovery. Blue arrows on the chart = buys. Yellow = sells.

I've personally found a great deal of success in trading HIVE actively. I also have the added benefit of being an active stakeholder on Hive. So on the infrequent occasions that I buy HIVE at a particular price and then see a major drop without an immediate recovery, I'm able to simple move the HIVE off the exchange and power it up.

From there, I'll use the HIVE POWER to generate an APY yield and wait for the HIVE price to recover. Then I can choose to either keep the HP staked and earning rewards or power down the initial trade amount to recoup my original BTC position.

Someone asked me recently what I found most attractive about HIVE as an investor/trader. To me, what I'm talking about right here is one of the greatest reasons to be a HIVE hodler/trader. There are a lot of options to earn which means that even if you buy at a bad time, you can still power up and defend your position. Options are always a great thing in trading.

Hive-Based tokens can be traded on Hive-Engine or on the @leofinance project's interface to the Hive-Engine exchange at https://dex.leofinance.io.

On the LeoDex, you can find a plethora of tokens to trade. There are different use cases, project managers and economic models behind each token, so you need to spend the time to DYOR (do your own research) about each token before diving in.

I've found a handful of tokens to be extremely lucrative in terms of market timing and trading. We often talk about various trades on the stock market, Hive-Engine market and crypto markets in the #trade-chat of the LeoFinance Discord if you're interested in following along.

A recent example of a trade I made was in the DEC token:

The volume of tokens can be limiting in terms of how big you can get on your trades, but there are still a variety of opportunities available on the second-layer of Hive. If you want to actively earn here on Hive, tokens are definitely not something that you should overlook.

In Part 3, we'll continue down our list of ways to earn on Hive:

  1. Curating Content
  2. Creating Content
  3. Delegating to Projects For Passive Yield
  4. Trading HIVE and Second-Layer Tokens
  5. Using Second-Layer Tokens
  6. Building a Business/Community
  7. Freelancing on Hive
  8. Blockchain Gaming

LeoFinance is an online community for crypto & finance. We run several projects that are powered by Hive and the LEO token economy:

Track Hive DataBlog & Earn LEOLEO FAQ
HivestatsLeoFinanceLearn More
Trade Hive TokensLearn & ContributeHive Witness
LeoDexLeoPediaVote

Posted Using LeoFinance

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Intersting thing about the trading.
I have never activly traded hive/steem.

Usualy whatever small amounts I bought, I would power it up. When some pump would happen I would sell some liquid I have on a side.

Just yesterday I bought some Hive and leave it on exchange :) Just for the purpose of trading.

When you think about it, trading Hive is a no brainer, since we all know it well.

I took a long hiatus from trading Steem/hive but once you really look at the price swings, it’s a no brainer to set low bids and then place asks just above those and play the candle wicks.

As I mentioned, if I get filled at a bad time and hive drops way below my bid and I have to sit on that hive for a while before the price recovers, I simply power it up and put it to work. It’s hard to lose under that scenario, especially if you continue to dollar cost average as the price drops further and further.

As people who use this chain everyday, I think more of us could trade hive with a lot of success. I’ve gotten far more active lately

Posted Using LeoFinance

Delegating HP is a good option to earn HIVE in a passive way. Thank you so much @khaleelkazi for sharing your strategy about HIVE trading. Looking forward to reading your next post.

Posted Using LeoFinance

Delegations are awesome. I love that feature and I know so many people in crypto who would be fascinated by an on-chain mechanism to generate yield. I hope more read it with enthusiasm like you :)

Posted Using LeoFinance

Trading hive and hive-engine tokens appears to be one of the best methods I like, though I'm not an active trader.

Delegation too is a good alternative and with this, I'll make some delegation to @leo.voter.

You might want to include a link for that in your next article or edit this one.

Posted Using LeoFinance

man thanks for tips I will see part one now to help me earn some extra cash

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Posted Using LeoFinance

Seriously never bothered about trading hive based token...but considering it is a good option for long run, it's not bad to give a try....delegating to projects is beneficial...but how own curation is not much beneficial.?

I'd love to be able to trade more on HIVE-Engine but the liquidity isn't there for some trades and makes these micro trades a waste of time sometimes. Perhaps if they could introduce liquidity pools like uniswap that could help

Delegating HP was one of the best option to earn Hive/HBD passively. It's nature to let delegators earn without doing anything is fantastic. Thanks @khaleelkazi for sharing some strategy tips with us. Looking forward for your next post.

I've been using the delegation method on Leo. Getting a nice return in LEO tokens for only 500SP delegated. I'm aiming to delegate at least 1000SP sooner or later. It's a great way to get passive income!

LeoFinance is an online community for crypto & finance. We run several projects that are powered by Hive and the LEO token economy.

I’m happy to be part of LEO community

Posted Using LeoFinance

That's a really interesting section on trading, I might have to get more active myself!

It's probably worth mentioning with that LEO delegation yield, that is much better than even a good curation return percentage on Hive, and better than most other delegations too!

Posted Using LeoFinance

Interesting points there, especially about the trading, I have not gotten into that myself, but the way you described it here does make a lot of sense, just a high/low sell/bid and play the ups and downs, might have to take a closer look and test it.

Very interesting and a pleasant read.

I've been trading hive/btc on ionomy and made several 15% swaps already. Buy low and sell at around 15% higher.

Now that people want to exchange blurt for btc and then to hive the price action is very interesting.

part 3 part 3 part 3!!!

Posted Using LeoFinance

interesting, I traded 2 operations on Hive before but it went down both times (hive/btc) so I'm not trading now until I get a good consolidation range... Still I'm sure Hive will go up against usdt so I'm not worried, Hive/btc was because the good price rise that we were having since march on Bitcoin.

I'm waiting to have more Hp of my own to delegate, right now I can handle my 1000 Hp hahahahahhah

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There is a problem with your images. in any case, great article!

Thanks for this post. It seems i was bit late to discover this article. I must say this is super helpful content for new users like me. I always wondered about this delegation functionality of dlease. I am glad that i stumbled upon this post. Eagerly waiting for the next part.

Posted Using LeoFinance

Thank you for this valuable information, @khaleelkazi
I got a question on delegation and I was wondering if you can help me.
When you delegate your HP, does your Voting Power increases? And if so, does it remains this way after the delegation is due? or does it come back to its original value?

Thank you!

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