We all hope 2025 will still be a bull year, don't we? Maybe some are less convinced than when the year started, but still, all things considered, I still expect a more positive than negative outcome for crypto this year. Perhaps less of an alt season than many hoped for and more of a bitcoin maxi year, but who knows?
We'll see how that affects the outcome for the price of HIVE in 2025 too... We still have developments that should positively influence the price this year, including the marketing campaign and expecting influx of new users from Splinterlands, and VSC and its defi and inter-connectivity potential. Let's not forget about the same potential from Inleo and LeoDex...
Anyway, I still expect HIVE around 1$ or even a little higher this year, but likely not another ATH if we don't have a strong alt season. I wouldn't mind to see another ATH, though, lol. Or a 5$, 10$ HIVE... We can keep dreaming, right?
What I do have this year is a HBD in savings goal. Even more, I inherited it from last year, thinking this year we will have an alt season to take profit at higher levels. Now that I think about it, we had such an episode for HIVE at the end of 2024 and beginning of 2025. Hopefully, that wasn't the alt season this cycle, because if it was, I remained mostly a hodler... again.
Anyway, back to the title.
How do I increase the APR of the funds I add to the HBD Savings?
First of all, some caveats:
- I do expect the price of HIVE by Q4 (or earlier) this year to be higher than it is now; if we enter a bear market and it won't be, one would lose in dollar terms instead of increasing APR using my method
- this makes sense for me since I have a HBD savings goal, but may not make sense for someone who thinks HIVE price evolution would vastly outperform interest for HBD savings + a certain profit (you will see below)
- I wouldn't recommend it for high amounts precisely because I believe myself that keeping liquid HIVE or HP until closer to the peak of the bull market would be more profitable
So, how does this work?
Well, this is better explained by example. If you have 10 HBD and you add it to savings, you earn (currently) 15% APR on it. Let's assume it is fixed, and witnesses don't decide to drop that interest to a lower rate. In 1 week, that's 0.28% (although only claimable after 30 days), in 1 month, that's 1.25%, in 2 months, that's 2.5%, in 3 months that's 3.75%. These examples are enough for now.
Let's say you forfeit that interest on HBD and instead of adding HBD to savings you buy HIVE with it and create a sell limit order for those HIVE on the internal market. Let's say you watch the chart of HIVE for resistances to better pick a price, but choose a profit range between 20-30%. You basically buy back the 10 HBD at a cheaper price, and the profit (of 20-30%) remains as HIVE.
That order could be hit, depending on conditions in the bull market, in a few days, a week, a month, 2 months, 3 months, or maybe even longer if you are really unlucky or picked the wrong period to try this (when price retraces from yearly tops in the medium term). How long it takes can be a factor, because the longer it takes the more interest would have been lost had the HBD been put into savings. But 20% is high enough to ensure it is more profitable than keeping it in savings almost in any case, probable except if you set the order at the beginning of the bear market.
You can repeat the process to put the same 10 HBD to work for more HIVE profit or... you can add it to HBD savings after one go.
If you choose the second option (which I do, with very small orders), you effectively get a profit of 20-30% from the price appreciation of HIVE, minus the interest you would have received in the time needed for the limit order to be executed, plus the APR from the interest received from that point forward, after moving the HBD to savings. The profit remains as HIVE until/unless otherwise decided, so it benefits of further price appreciation of the coin. If the end goal is to capture that profit into HBD savings, you have to make sure that toward the end of the bull market you sell the HIVE resulted from these trades into HBD and add it to savings, otherwise you would hold liquid HIVE into the bear market.
That beats having the 10 HBD directly into savings, unless you are in a downtrend instead of an uptrend. Even in a sideways market chances for the price of HIVE to pump 20-30% within a decent amount of time is very high, even if it goes back down.
At the same time, keeping all funds in HIVE/HP until the peak of the market would be the most beneficial, if the price appreciation is significant from here, and even 1$ is very good, if we calculate APR. That's what I do with the majority of my HIVE. In fact, the vast majority of my HIVE aren't even liquid, and never will be.
Therefore, if you want maximum impact, are optimistic, and are sure you can catch the high prices when they come, keeping everything in HIVE is the best choice. If you want to move funds to HBD in savings though, my method could increase your profit, if we are still in the bull market (which I think we are).
Why I do this only with very small amounts? Simply because I consider it is more likely to be more profitable to keep HIVE instead of adding funds to HBD savings this early.