One of the best and successful pair is swap.hive:Leo and today I added my first investment in this pair in liquidity pool. As I already told that I will invest in different investment markets to keep my portfolio diversify. Among those one of the investment place is liquidity pair with hive:Leo. I added 1swap.hive and 1.046Leo. This amount is the beginning of my first investment in this pair and the journey continues.
Its very simple to access liquidity pool for investments. One of the best things which I like in the #hive ecosystem is the liquidity pool investment. The main reason I like is because it is the safest place for investment and also it gives good APR. The APR varies from 12% to 30% depending upon the pair and market conditions.
Best exchanges for liquidity pool investment
Right now, in the hive exchanges for the liquidity pool investment, you can access #Tribaldex #beeswap and #leodex. All these 3 are best but my choice is alwasy Tribaldex. This is because I have used this interface many times and I am addicted with this.
What happens in liquidity pool? Its a kind of pool investment where you add two tokens for providing liquidity. Whenever any trasaction is done or users trade between these two tokens you selected, you will keep on earning APR profits. The transaction fees are yours, you are the liquidity provider for this pair.
In every investment there is always risk of loss. Any market which says I only give you profit, just lies or they are totally scam. Its just similar to the business in real life. When you start any business, can you say that there is only profit here? There is no loss at all? No, nobody can say this.
Every business or investment contains risk of loss. There is only one source of earning which has no loss and that is to save your money in banks, investing in stable coins and the jobs. There is no risk of loss but you also the profit gain is very less. you will get the fix amount of money on monthly basis.
In liquidity pool invesmtent, same is the case here. Its totally investment scheme and here profit and loss exists. But one thing for clarifying you guys that the risk of loss is reduced when you hold your investment for the long term. This is because every coin in the long term will perform well and you get a profit from it.
Today I invested 1hive and 1.046Leo tokens. I have a plan now to hold for atleast 5 years. I will keep on adding investments every week. In this case for the profit ratio is more then loss. Because I will hold for long term and in long term there is no loss. Your losses will be covered with the APR profits you get.
Cases of profit and loss in liquidity pool
There are 2 cases of profit here. If suppose, hive coin pumps while #leo token remains stable in its price. In this case, your hive token will keep on converting into leo token, rebalancing works. Another case, that both of the tokens rise in price, there will be no rebalancing rather you will get the real profit from both of the tokens.
Similarly, there are 2 cases of loss as well. If suppose, #hive is stable but #leo token dumps. Hive will keep on converting into leo token, doing rebalance. In this scenario, your overall wealth will decrease. In the 2nd case, if both of these tokens came down in price, in this case there is no impermanent loss rather real losses will occur.
These are the types of profit and loss in this invesment pool. But if you are long term investor then there is no need to think about losses. Your investment will always end in profit. The monthly APR profits will be kept on adding in your investment and will cover your losses.
I chose this pair for the investment because both of them are strong and active. #hive best projects are #arcadecolony #splinterlands #PeakD #Ecency #inleo #hive-engine which are the best supports of this ecosystem and provides real value to the coin.
Similarly, Inleo has the best team working behind, they are more stronger then the past. #Leodex is the main reason for the growth of this platform. New updates are really charming for the growth of the #leo token.
What do you people think about this pair? Will it be beneficial in the long run? Share your reviews in the comment section.
I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.
Thank You! Best Wishes.
Posted Using INLEO