I saw some of my friends discussing which would be better to hold long-term. Though both are native coins in this chain, only in recent months HBD has attained utmost stability. It is now a perfect stable coin and HBD also proved itself to be a great stable coin in the recent dip we had. The price of HBD was pretty stable at 95 cents in spite of a huge fall that happened.
So, which one would be a good investment. I think I have discussed similar topics in the past to explore which would be the best investment and mostly arrived at a conclusion saying that both the investments are important and we should be doing both the investments for a healthy future. There is going to be no big change in that decision but this time I'm going to compare some facts on each type of investment differently.
APR
APR is something that we all are concerned about. Some people make investments keeping APR in mind. There are investments in the real world that wouldn't even give us 8% or over 8% interest in India. But when we come to the crypto world, there are some decent projects that give us interest rates over 8% per annum. Usually, the APR from Hive is close to 10 or 11 percent. But HBD is very high right now with a little over 12% APR if we claim the interest every month and reinvest.
APR is very important because that's what decides if our investment is a worthy investment or not. We always go for investments that give better returns. Who would be interested to do an investment that gives lesser returns? But some people wouldn't mind doing such investments as long as it is safe and risk-free. Even though there is a considerable amount of risk involved in crypto investments, people still invest because it gives better ROI.
Price fluctuations
One of the biggest reasons why people prefer HBD investment over Hive is the price fluctuations. There are also people who would prefer Hive over HBD for the same reason. The first set of people want to keep their investments pretty safe and they trust a stable coin investment and just be happy with the 12 percent they get. The second set of people is the ones who look for an opportunity where their investment value would increase if the price of Hive also increases. That's also an important thing to be considered.
People would be happy to invest in Hive when the price of Hive is pretty low due to a temporary market dip and they sell it off again when the price pumps during good times. Even in the last two weeks, the price was at around 70 cents and now at around 1.2$. It also gives a great trading opportunity to the investors.
Locking period
When it comes to the locking period obviously HBD is the best because we can take our funds out in just 3 days. In the case of Hive, we have to wait for 13 weeks to get our funds fully out. Some people are hesitant to invest in Hive for this very reason. Especially people who care about the curation rewards. In order to get curation rewards, it is mandatory to power up Hive.
Some of the real-world fixed deposit plans that give high-interest rates will ask us to lock our funds in the bank for like a minimum of 1 year or 5 years. Some banks allow flexible deposits but the returns from them will not be that great. Imagine how better HBD investments are, they allow us to keep the funds locked only for a short period of 3 days and we can claim our HBD interests every month.
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