Colony (Liquidity Pool) Or HBD (Savings)? — Comparing the Top 2 Passive Income Ways in HIVE

in LeoFinance10 days ago

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An interesting topic to discuss about the two best earning ways in #hive ecosystem. This is the hot discussion for the hive users where they see their benefits and they want to get more information about it. There are several ways of earning in this ecosystem depending on the investor which one they select.

In this post I will discuss about the two best earning ways which will help you to decide for the investment. I have tried both of these investments and had earned income from the markets. One of the best ways where users can easily earn income without risk of loss or a minimum.

The good thing about this investment is that the profit ratio is much higher, minimum 15% or above. We all know that all traditional banks offers 5-6% and in third world countries they offer 11%. But still #HIVE APR is best then banks and other markets.

Earning through Liquidity pool but your capital is at risk

We have two best possible investments in this ecosystem, one is HBD saving and the other is Liquidity pool investments. I had recently invested in swap.hive and #Colony pair, swap.hive and #LEO pair. I noted that the APR return was above 18%. This is the beauty of LP investment which offers the best APR right now.

Investing in LP is simple, you need to have hive account, login into #tribalex exchange, find the swap option, go to the pool option, create the pool you want to invest, add the amount and proceed to transaction. This all process won't take more then 2 minutes.

After investing in LP, you have to keep 3 things in mind. One that you will regularly earn passive income which is the result of transactions. You are providing liquidity, whenever any user do transactions among this pair, then for every transactions, you will earn reward.

The second thing is that this investment is high risk, both loss and profit is possible. If your tokens rises in price you will get capital gain + passive income. But if the prices drops then in this case your investment is stuck but still you will earn 18% APR or above.

The third thing to note is that withdrawal is instant. You can withdraw at any time keeping in mind that you capital is in profit otherwise you can book your loss. This is the best way to earn passive income from LP market and also taking risk about your capital to grow your wealth.

Earning through #HBD but capital is safe

The second best way to earn in this ecosystem is #HBD savings. This type of investment is free from risk, there is no loss at all but only passive income. Again, this depends on the nature of the investors what kind of risk taker he is.

If you want to earn 15% APR (hich is equal to 1.25% on monthly basis) then #HBD saving is the best. #HBD is stable coin and it is supposed to stay at $1, clearing one thing that there is no risk of capital loss.

In this case, you will focus on #HBD savings (APR 15%). You will keep on earning profit on daily basis but is paid in the end of the month. This is best for the investors who dont want to take risk, just want to earn passive income.

Staked HBD balance is subject to 3 days withdrawal waiting period. Which means that after putting your amount into saving, you cant withdraw instantly rather it takes 3.5 days to give your withdrawal.

I wish you guys have understand about these two best investment options in the hive ecosystem. Which investment will you prefer and what is the reason? Will be glad to see your answers in the comment section.

I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.

IMAGE TAKEN FROM CANVA

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