In the investment world you often hear of people day trading. Honestly it can be fun and is the more gamey way towards investing. However it comes with massive risk and has been proven time and time again that stacking and holding assets instead of trying to day trade them into larger assets plays out better for the vast majority of people.
Now that's not to say some day traders don't make any money. Some do very well but when you start to look at the statistics of it all you realize quickly it's like going to the casino and gambling. Betting on one token over the other to have a increase and then constantly just moving those funds.
But there's a better away a way I've been using for a long while now with much success. It's why you don't see more nor will you ever see me trade in my stacks of BTC and ETH into hive or any other currency. For those of you who don't know I got involved with bitcoin when it was priced around $115 each and Ethereum right out of the gate with an average buy in value of just $11. Yep, $11!!!! If I would have known what I know now I would have dumped my entire paycheck into it lol Doing so would have meant that work I did 12 years ago for $11 a hour would now be worth over $2,000 a hour. It kind of blows your mind a bit but also shows the power of stacking and holding in assets you believe in.
There's many stacking options now compared to back in the day. Back in the day you really only had a single option. You either mined the tokens and held on to them hoping they would go up in value for all the electricity you just used or you bought it with your paycheck or money being earned.
This buying is what many refer to as dollar cost averaging or DCA. What it means is every day, week or month you buy a certain amount of token or tokens no matter the price. So for example lets say you're just going to stack $BTC you would setup a daily, weekly or monthly buy order to pick up BTC each time.
$10 daily, $100 weekly or $1,000 monthly are examples of this. Over time the idea is instead of trying to predict the markets and buy at what you feel are low times you dollar cost average in. Some days you might end up buying in for a high amount and other days you might hit an all time low. Over time this should average out and if the asset is good grow over time.
This chart here shows what would have happened if you invested $100/ weekly starting 5 years ago. You would have turned a deposit of $26,100 over those 5 years into $41,509 or a 59% increase even with the massive bull run and bear cycle.
Go back 7 years and you're now looking at a massive 205% gain on your 36,600 investment.
Alright so now what we have the age old method out of the way I want to get into some of the new stuff. Crypto has evolved a lot in just the last few years. 7 years ago you pretty much had 3 core cryptos. Bitcoin, Ethereum and Litecoin as the primary focuses.
Now you have more ways than ever to stack and grow your crypto. Mining no longer is crazy expensive and often costs far less then it would over time with other methods. Proof of work concepts are expensive and a lot of that value goes into hardware and electric costs. If you're able to produce your own electric for free then I would say mining makes sense ALWAYS with your excess power. If you're like many others though there are now more ways than ever to start growing your stacks and building them.
Proof of stake is one of the first and was ushered in by peercoin back in 2012. From there many other cryptos now use this proof of stake method. If you don't want to run a node yourself there are options such as Coinbase etc to stake your tokens and still earn a decent APR on them. Of course this comes at some risk since the platform you're staking on could cut and run with your crypto. Running your own node also comes with some risks if you're doing something you shouldn't be on the node and get blocked.
Outside of that you now have gaming such as Splinterlands these games offer up a bunch of new ways to stack assets like NFTs and crypto along with DeFi also known as gamefi etc.
But there's an even lower risk way to stack with hive in particular and that's through content engagements. By using Threads on InLeo by creating worthy threads and commenting on other threads you can generate crypto which then also generates in itself through various APRs for holding the tokens such as curation rewards.
You can also earn by writing high quality articles such as the one I'm writing right now. This type of article will earn me some crypto in terms of Hive, LEO and HBD along with a few other community tokens which all will earn APR and curation rewards on top of them.
As you can see with some work and investment you can quickly start building stacks of crypto compared to what you could do many years ago. It's time to get stacking and get creative with your stacking. There's legit no reason to sell out for other tokens for the most part and by focusing down on some of your own goals over time you'll start to see your wealth generate like crazy. It won't happen over night but I encourage you to stick with it for a full year and see where you are from today.
