There are many investors in the Hive ecosystem who want to generate passive income whether with effort or without effort. The good thing is that it is completely possible on Hive to earn a strong passive income through your investment.
Hive offers very high APR earnings that are difficult to find elsewhere. Even traditional banks cannot match these returns. In terms of security Hive is also very safe because it is decentralized and not controlled by any single authority.
Today I will explain a dividend style earning model on Hive similar to how people invest in stocks to earn regular income. If you have experience in the stock market you have witnessed large investors who have invested in strong dividend shares that are only to earn dividend from that stocks. This is how the same work in the hive ecosystem.
On Hive this is also possible. I will focus on two main options that is on HBD Savings and Liquidity Pools. Both are part of the Hive ecosystem and can provide excellent APR.
First lets talk about HBD. It is a stablecoin which is supposed to stay at $1. The process is simple you buy HIVE from an exchange, deposit it into the Hive ecosystem and convert it into HBD. After that you can move it to HBD Savings and stake it.
By staking HBD you can earn around 15% APR which is very strong. Your investment remains stable since there is no major price fluctuation and you can also grow your earnings through compounding.
One important point is that if you want to withdraw your HBD from savings it takes about three days to become liquid. After that you can convert it back to HIVE or sell it on an exchange.
Now lets discuss liquidity pools. Compared to HBD Savings, liquidity pools are a high risk, high reward option. You can access them through platforms like #Hive-Engine or #TribalDex where you will find many token pairs such as HIVE-COLONY, HIVE-HELIOS and HIVE-LEO.
These token pairs usually offer at least 15% APR and sometimes even higher. I recently provided liquidity in the HIVE-COLONY pool and earned around 24% APR which is almost double compared to HBD savings.
It is very important to understand the risks to keep balance your risk reward ratio. Tokens in liquidity pools are not stablecoins and their prices can fluctuate, thus they are high volatile. If the price drops you may experience a temporary loss.
On the other hand if the price increases you can gain additional profit. This makes liquidity pools more risky but also more rewarding.
In conclusion both options are excellent for generating passive income on Hive. HBD Savings is ideal for those who want stable and consistent earnings while liquidity pools are better for those willing to take higher risks for higher rewards.
Many users are already earning well through these methods making Hive a strong ecosystem for passive income opportunities.
What do you people think about these investment options? Which one best suits you 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 PEAKD TRIBALDEX CANVA
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