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In the traditional sense, a dividend is a distribution of profits from a company’s stock or debt to its shareholders. Now you might be wondering if cryptocurrencies can pay dividends then? Surprisingly, the same concept also exists in the global crypto asset markets.

Read on to learn more about crypto dividends and discover a list of main cryptocurrencies that pay dividends.

What are crypto dividends?

Crypto dividends are a form of profit sharing that is paid out to investors as part of the income or fees of a cryptocurrency project. In most cases, crypto dividends are offered as an incentive to support the development and growth of a project by holding onto the project’s native currency.

In traditional finance, dividends are paid to shareholders based on the number of shares they own in a company. The same goes for the cryptocurrency industry. Token holders earn rewards – similar to dividends – based on the number of tokens they hold.

Paying dividends cryptocurrencies usually pay automatically, so investors are not required to perform a specific action. This is usually the case for exchange tokens that pay token holders a share of trading revenue or fees. Conversely, some cryptocurrencies that pay rewards require you to keep your tokens in a specific wallet to receive the rewards.

Top Cryptocurrencies That Pay Dividends

Now let’s look at five popular dividend-paying coins you could invest in today.

AscendEX (ASD)

AscendEX, formerly known as BitMax, is a Singapore-based centralized cryptocurrency exchange. The ecosystem is powered by the ASD token, which is an ERC-20 token. By holding ASD, investors can earn dividends in the form of automatic airdrops. The platform has a tiered reward system that allows users to earn more rewards by holding more ASD tokens.

AscendX pays dividends using a staking system that allows users to earn up to 50% of the network’s total profits. In other words, if your investment grows by 10%, you will receive 50% of that growth. The other half goes back into the network, which means that if your investment drops by 10%, you will still get half of what was there before! The dividend payment is calculated according to the following formula: (Total volume of offers/Cumulative volume) x 50% + 0.1%.

Additionally, users can purchase AscendEX’s ASD Multi-Investment Card, which can be used to earn even more rewards.

Bibox (BIX)

Bibox is a digital asset exchange that was launched in 2017 in China. It offers a wide range of trading options and features, including trading, storage, and wallet services.

Bibox has its native token called BIX, which is an ERC20 token. You can buy and sell BIX in Bibox’s online exchange or through the exchange’s mobile app. The main goal of the project is to provide users with an easy way to buy and sell crypto assets from the app. Moreover, it allows users to enjoy low transaction fees and fast withdrawals.

To earn dividends (staking rewards) in Bibox, you need to lock 500 BIX tokens in your account and trade at least once a week. By completing these tasks, you will receive a percentage of all trading fees generated by your account as a reward, with an APR of approximately 8%.

KuCoin (KCS)

KuCoin is a popular Hong Kong-based cryptocurrency exchange that was launched in September 2017. Along with this ample liquidity, the exchange has also been praised for its fast transaction speeds, user-friendly interface, and easy platform use.

KuCoin offers a wide range of cryptocurrencies and trading pairs for its users. It also pays daily dividends to its holders in its native country. Kucoin Token (KCS). Daily dividends are issued from 50% of all fees collected from users on KuCoin.

The KuCoin (KCS) token is an ERC20 token that runs on the Ethereum blockchain. KCS holders earn dividends by staking their tokens on the platform. Daily rewards average 5.59% annual returns. The more tokens you hold on KuCoin, the greater the percentage of your winnings will be returned as staking rewards. This is a unique feature that sets KuCoin apart from many other exchanges.

Additionally, it also provides users with the ability to vote on new announcements and promotions through their KCS holdings. The more tokens you hold, the more voting power you have.

NEO (NEO)

Formerly known as AntShares, NEO is a blockchain platform that allows you to issue your digital assets or “smart contracts”, and trade them on the NEO platform. The platform also offers a set of developer tools that allow users to build their smart contracts and decentralized applications (DApps). Accordingly, it is also referred to as the “Chinese Ethereum”.

The NEO ecosystem is powered by GAS, which is an internal currency that can be used to pay transaction fees and also reward staking/holding tokens in wallets over time (dividends). GAS is distributed based on how long you hold your NEO tokens; you get more if you keep them longer. As it stands, you receive 0.0003 GAS per day for each NEO you hold. This equates to an annual return of approximately 2%.

Note that the GAS in NEO is its native token and is different from the gas fees usually paid in Ethereum.

VeChain (VET)

VeChain is a blockchain project that was founded in 2015. It is a smart contract platform, similar to Ethereum and NEO. The project boasts of an eco-friendly and robust blockchain ecosystem.

The native currency of this project is VETERINARY, which is an ERC20 token on the Ethereum network. By holding the VET token in your wallet, you will be rewarded using VTHOR coins, another native token of the VeChain ecosystem.

Dividends are paid quarterly and depend on the amount you have wagered. Currently, payout rates for 1 VET staking are 0.00042 VTHOR, which translates to an APR of 1.4%.

Conclusion

So, is crypto paying dividends? The answer is yes! Although technically, by definition, these are not really dividends. Instead, they are rewards paid out in cryptocurrency.

If you want to generate passive income from your crypto investments, one of these five options might be right for you.



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