Today I am going to share a very good and practical strategy for Hive users on which I myself have been working for a long time and I am continuously earning good profit from it. Especially for those Hive users who have good Hive Power and want to grow their account more through content creation, curating, and power up, this can be a very good opportunity.
Only doing power up and earning income from curating is not enough but if a little smart trading and coin rotation are also included then you can increase your Hive quantity very quickly.
In my opinion, Binance exchange is a very good platform for this purpose where you can trade between Hive and Steem coins with a safe and low risk strategy. First of all you have to set a specific amount through which you will only trade Hive and Steem.
Most people immediately think that trading is very risky, there can be loss and a person can get stuck. But the special thing about this strategy is that the chances of getting stuck are almost zero because even if you get stuck somewhere you still have many options like hold, power up and coin rotation.
If I give my own example I have almost $2000 of trading capital which I have divided into five parts. Meaning I use almost $400 in each layer. My base coin is Hive. What I do is buy Hive at its support level and then wait whether it pumps or dumps.
If it pumps then I simply book profit. But if the price goes down then I do not immediately use stop loss rather I monitor the price of Steem. This is the interesting part started.
For example if Hive dumps 5% but Steem goes down 8% then in such a situation I convert my whole fund (1st layer) into Steem. Because the movement of both coins is quite correlated therefore often such an opportunity comes that later conversion back into Hive can be done at a better rate. During this time if Steem pumps then there is also an opportunity for profit booking there.
After this I wait for Hive to come to the next support level. As soon as the second support level comes I invest my second layer meaning another $400 is invested. If the market reverses from here then again I get profit and if it dumps more then I start the same rotation process again. Meaning I keep taking advantage of the spread by shifting funds between Steem and Hive.
Later when the spread between both coins starts becoming smaller then I start converting Steem back into Hive. The biggest benefit of this whole process is that my Hive quantity keeps increasing continuously.
Along with this I reach near the break even point where I get the chance to escape or most of the time I book profits. At this point if you want you can take exit or you can hold more for better profits.
This is not just a trading strategy rather it is a “coin rotation strategy” where you use market movement in your favor. The special thing is that if you hold Hive for the long term then through power up you can also earn passive income in the form of 12-16% APR. (This is not the part of this strategy)
Even in todays recent pump I made almost 50-60$ profit where I simply did buy low and sell high and the layers that got stuck I converted them into Steem and later shifted them again into Hive or USDT. In this way my Hive quantity also increased. Later you can sell those added quanities or keep on compounding.
I hope you will like this strategy. Especially for those Hive users who want to continuously increase their Hive Power, want to earn extra profit from trading and at the same time also want to keep earning passive income from curating, this can be a very good method.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.
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