My powering down plan.

in LeoFinance3 years ago

The world ain't all sunshine and rainbows

The world ain't all sunshine and rainbows, it is a very mean and nasty place. With this quote, I introduce you to risk management.

It is not about how much money you can make, it is about how much money you can avoid losing and stay in the game, because as we all know, from a very famous quote from Wall Street Bets:
"Stonks only go up"

Stonks only go up

However, even as a firm believer that with time, mostly everything goes up, I need to manage my risk and my wins accordingly to avoid giving back to the market.

I purchased most of my Hive at 20ish cents, and it went up like 50% since then. I powered it all up, because why not? But after thinking, I realized it was riskier than selling and holding HBD.

HBD has, right now, an interest rate of 7% a year, which is not bad at all! It pays more than mostly any reliable bond out there, and it is here, on Hive, and I trust the Hive blockchain.

So, logically, I am powering down but not leaving Hive, I am gonna put it on savings to take advantage of 3 key points:

  • If I happen to need money, I can take it from savings within 3 days and use it for an emergency.
  • If Hive drops all of a sudden, I can take it off of saving to buy more, as an opportunity reserve
  • 7% a year is a great yield, why would I pass? I made 50% anyways

So, as I power down on the next few weeks, I hope to not need to spend money, so it will all go to savings.

If Hive keeps going up, I win more than the 50%, if Hive goes down, I will have a reserve of opportunity to buy Hive lower, if Hive keeps on sideways 7% a year is great!

Quoting Wall Street bets again:
It literally can not go tits up

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Haha you sure do have it all set, yor power down will be a win win for you and I can see that you're determined to go with it.

All the best in powering down, I don't have much powered up so I can't think of powering down just yet 😂


Posted via proofofbrain.io

The problem with keeping a low hivepower is curation rewards (upvoting comments) and RC pools will be low. AFAIK, RC is based strictly on HP.
I don't know the maths, but I imagine curation rewards are higher then savings, assuming you keep your voting power not sitting idle at 100%. And to manage that, just gotta upvote 5 things at 100% upvote a day, which should be easy enough to manage for anyone that's active for even 10 minutes a day on any of the hive frontends. This will also help your hive-engine coins, so it's kind of a double edged sword as far as keeping it all locked in savings, which to me is more of a short term speculation account with a 3 day lag on market advantage. * * Shrugs * * idk... Hard to say, but do what's best for you ^>^