How to invest in the COLONY-HIVE liquidity pool
In the past I have shown different ways to not only earn the Colony token, but also some of the functions it has in its ecosystem, so this time I will be showing another option we have to make use of our tokens.
So we will be testing the liquidity pool, this is a slightly more advanced method because there is a risk of losing everything if the market goes against us, it is not recommended for beginners, nor for those who want to make money without effort, here you need a little judgment and knowledge to avoid significant losses.
In the BEESWAP infartas we must as always in a liquidity pool divide our capital, in the native token HIVE, and the token to use in this case Colony then the capital is 6000 Colony that will be divided so we can put them in the pool.
If the market price goes against us we could have either only Colony or only Hive, nothing convenient if the price shoots up too much, but if it stays calm we can have Colony rewards as long as we keep our funds we will be every day receiving a few tokens in proportion to the capital we put in the pool.
With that, we can see how many tokens we have in the pool, how much the pool has in general, if it has funds, from many people is a good sign, that reflects the project is stable, or your token has a value price that is taking value over time, which makes people more interested in keeping it, this theory is crucial in any token that we seek to invest.
With this ready every day we will receive in this case from the liquidity pool COLON/HIVE token Colony, each pool offers different rewards, so they are more functions that has the token, which is good for a token to have so many activities that give value, otherwise they will only be tokens that will always be falling by the constant sale of their owners.
Similarly here we can withdraw the tokens at any time without penalty which protects us a little from losing money if we detect that the market is against us.
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Thank you for this information
I did not know about the rewards from investing in pool Colony-swap
Such a great information, thanks.