Lately, I've been reconsidering whether keeping everything in Hive Power is really the best strategy, especially if you want a bit more flexibility to take advantage of market movements.
Would this be a Hive Power vs. Hive Staking comparison? (Through exchanges that offer this like Binance)
Today, I read a post by @edicted, regarding Hive Tightening of the Belt? Only Upvoting Powerup Accounts?
It seems that some of the old guard, or I could say OG, might be approaching this strategy of withdrawing votes from those powering down their $HIVE.
The crypto world is a constant rollercoaster, and if all your $HIVE is locked in Hive Power, withdrawing your funds is not exactly the fastest thing to do. The process of "powering down" Hive Power, i.e., converting it back into Hive to sell or transfer, takes weeks.
Yes, weeks!
It takes seven days for a percentage of the amount to be delivered, resulting in 13 weeks for the entire amount to be fully released. And then you imagine the following: the market starts to skyrocket, you see Hive's price exploding, and you? You can only watch.
Hey, we’re investors and fans of the ecosystem; we want to earn something.
That’s when frustration hits.
Everyone around you is enjoying that crazy bull run, and you're stuck watching while your tokens are locked, earning influence on the network but not giving you the liquidity you desperately wanted at that moment.
It’s over. Now you have to wait for the weeks to pass.
And it’s not just in times of market highs that this can be a problem. I could address another scenario: Imagine the price starts to plummet, and you want to withdraw to avoid further losses. There you are, once again, unable to do anything, because Hive Power can't be instantly converted to Hive. The flexibility is minimal. Honestly, it feels like an unnecessary risk, considering other options that are out there.
Now, comparing this with staking the token on exchanges like Binance, which is the same one I use, the conversation takes a different turn. When you stake on an exchange, you often still have the option to withdraw your funds more quickly, without that long waiting period (Except for time-locked staking, but this is offset by a considerably high APR).
Don't get me wrong, building a profile with Hive Power has its value, especially if you're committed to the platform in the long term and want to participate more actively in governance and curation. But, if your strategy includes taking advantage of quick market moves or having liquidity available in emergency situations, staking on exchanges seems more appealing right now.
Well, this was one of the main reasons I had the idea of using HIVE in my project; see here: Introducing Possibly the Next Best Game Powered by the Hive Network Called Hivernum Odyssey
But it is still not in its solid foundation phase, so there’s no reason for me to maintain a large power.
It all depends on your strategy and what you value more. If you're focused on the long term, building influence, and earning more from curations, maybe Hive Power still makes sense. But if you want a bit more freedom and flexibility, especially in an unpredictable market, staking your Hive on an exchange like Binance might be the best choice, in my opinion.
Keep in mind that this is just my way of looking at things, and we could take this post as merely an expression of thoughts, right?
Posted Using InLeo Alpha
