In the traditional sense, a dividend is the vente of butins from a company’s subsistance or debt to its shareholders. Now, you might be wondering, can cryptocurrencies pay dividends? Surprisingly, the same abstraction is also present in the unanime crypto asset markets.
Read on to learn more emboîture cryptocurrency earnings and discover a list of the best cryptocurrencies that pay dividends.
What are cryptocurrency earnings?
Crypto earnings are a form of boni sharing that is paid to investors as quartier of a cryptocurrency project’s revenue or fees. In most cases, cryptocurrency earnings are presented as an incentive to contrefort the development and growth of the project by sticking to the bâtiment currency of the project.
In traditional appointé, dividends are paid to shareholders based on the number of shares they own in the company. The same goes for the cryptocurrency industry. Token holders get rewards – similar to dividends – for the number of tokens they own.
Dividend-paying cryptocurrencies usually pay out automatically, so investors are not required to take any marche. This is usually the case for exchange tokens that pay token holders a share of revenue or trading fees. Conversely, some cryptocurrencies that pay rewards require you to keep your tokens in a specific wallet to receive the rewards.
Top Paying Cryptocurrencies
Now let’s take a style at five popular dividend-paying coins that you can invest in today.
AscendEX, formerly known as BitMax, is a centralized cryptocurrency exchange based in Singapore. The ecosystem is fed by an ASD token, an ERC-20 token. With an ASD contract, 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 consortium more ASD tokens.
AscendX région dividends using a staking system that allows users to earn up to 50% of the achevé network butins. In other words, if your investment grows by 10%, you will get 50% of that growth. The other half goes back to the net, which means if your investment shrinks by 10%, you’ll still get half of what was there before! Dividends are calculated using the following formula: (Plein Bid Imprimé / Accumulated Imprimé) x 50% + 0.1%.
Moreover, users can purchase AscendEX’s multi investment ASD card, which can be used to earn more rewards.
Bibox is a numérique asset exchange launched in 2017 in China. It offers a wide range of trading options and features, including trading, storage, and wallet obligations.
Bibox has its own modèle token called BIX, which is the ERC20 token. You can buy and sell BIX on the Bibox exchange online or through the exchange’s baladeur juxtaposition. The dextre neutre of the project is to provide users with an easy way to buy and sell crypto assets from within the app. In bonus, it allows users to enjoy low arrangement fees and fast withdrawals.
To earn earnings (staking rewards) in Bibox, you need to lock 500 BIX tokens in your account and trade at least grain a week. By completing these tasks, you will receive a percentage of all trading fees generated by your account as a amendement, with an annual interest manque of around 8%.
KuCoin is a popular cryptocurrency exchange based in Hong Kong that was launched in September 2017. In bonus to this deep liquidity, the fast arrangement speeds, embraser friendly limite and embraser friendly platform are also praised.
KuCoin offers a wide range of cryptocurrencies and trading pairs to its users. It also région daily dividends to its holders in its habitation folk 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 butins by placing their tokens on the platform. Daily bonuses average 5.59% annual returns. The more tokens you hold on KuCoin, the higher percentage of your winnings will be returned as staking rewards. This is a égoïste feature that distinguishes KuCoin from many other exchanges.
In bonus, it also offers users the opportunity to voix on new listings and promotions with their KCS collectibles. The more tokens you have, the higher your voting power.
Formerly known as AntShares, NEO It is a blockchain platform that allows you to terme your own numérique assets or “élégant contracts,” and trade them on the NEO platform. The platform also provides a résultat of developer tools that allow users to build their own élégant contracts and decentralized applications (DApps). As a result, it is also called “Chinese Ethereum”.
The NEO ecosystem is powered by GAS, an internal currency that can be used to pay arrangement fees and also reward Staking/Hold Tokens in wallets over time (dividends). Gas is distributed according to how colossal you hold your NEO tokens; You get more if you keep it for raser periods. As it stands, you get 0.0003 gas per day for every near-body you own. This amounts to an annual return of emboîture 2%.
Compté that GAS in NEO is its exutoire token and is different from the gas fee normally paid in Ethereum.
VeChain is a blockchain project founded in 2015. It is a élégant contract platform, similar to Ethereum and NEO. The project boasts a robust and environmentally friendly blockchain ecosystem.
The modèle currency of this project is Veterinarian Dr, which is the ERC20 token on the Ethereum network. By keeping a VET token in your wallet, you will be rewarded with VTHOR coins, another token in the VeChain ecosystem.
Dividends are paid every three months and depend on the amount you bet. Currently, the payout rates for 1 VET are 0.00042 VTHORs, which translates to an APR of 1.4%.
So, does cryptocurrency pay dividends? The answer is yes! Although technically it is, by definition, it’s not actually a dividend. Instead, they are rewards paid in cryptocurrency.
If you want to make passive income from your crypto investments, then any of these five options can work for you.