Top 5 Coins That Pay Crypto Dividends
In the traditional sense, a dividend is a distribution of profits from a company’s shares or debt to shareholders. Now you might be wondering, can cryptocurrencies pay dividends? 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 the best cryptocurrencies that pay dividends.
What are crypto dividends?
Crypto dividends are a form of profit sharing paid out to investors as part of a cryptocurrency project’s revenue or fees. In most cases, crypto dividends are offered as an incentive to support a project’s development and growth 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 – in proportion to the number of tokens they hold.
Dividend-paying cryptocurrencies are usually paid out automatically, so investors are not required to perform a specific action. This is usually the case for exchanges that pay token holders a share of revenue or trading fees. Conversely, some cryptocurrencies that pay rewards require you to hold tokens in a specific wallet to receive the rewards.
Top Paying Cryptocurrencies
Now let’s take a look at five popular dividend paying coins you can invest in today.
AscendEX (ASD)
AscendEX, formerly known as BitMax, is a centralized cryptocurrency exchange based in Singapore. 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 be paid 50% of the growth. The other half goes back into the network, meaning if your investment shrinks by 10%, you’ll still get half of what used to be there! The dividend payment is calculated using the following formula: (Total Bid Volume/Accumulated Volume) x 50% + 0.1%.
Furthermore, users can purchase AscendEX’s ASD Investment Multiple Card, which can be used to earn even more rewards.
Bibox (BIX)
Bibox is a digital asset exchange 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. In addition, it allows users to enjoy low transaction fees and fast withdrawals.
To earn dividends (stake 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 around 8%.
KuCoin (KCS)
KuCoin is a popular cryptocurrency exchange based in Hong Kong that was launched in September 2017. In addition to this deep liquidity, the exchange has also been praised for its fast transaction speeds, user-friendly interface and user-friendly platform.
KuCoin offers a wide range of cryptocurrencies and trading pairs for its users. It also pays daily dividends to its holders in its home country Kucoin Token (KCS). The daily dividend is issued from 50% of all fees collected from users on KuCoin.
The KuCoin token (KCS) is an ERC20 token that runs on the Ethereum blockchain. KCS holders earn dividends by staking their tokens on the platform. The daily rewards average 5.59% annual return. The more tokens you have on KuCoin, the higher percentage of your earnings will be returned as stake rewards. This is a unique feature that sets KuCoin apart from many other exchanges.
In addition, it also gives users the ability to vote on new listings and promotions through their KCS inventory. The more tokens you have, 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). As a result, it is also called “Chinese Ethereum.”
The NEO ecosystem is powered by GAS, which is an internal currency that can be used to pay for transaction fees and also reward staking/holding tokens in wallets over time (dividends). GAS is distributed according to how long you hold your NEO tokens; you get more if you keep them for longer periods. As it says, you receive 0.0003 GAS per day for every NEO you have. This amounts to an annual return of approx. 2%.
Note that 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 founded in 2015. It is a platform for smart contracts, similar to Ethereum and NEO. The project boasts an environmentally friendly and robust blockchain ecosystem.
The initial coin of this project is KNOW, 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 in the VeChain ecosystem.
Dividends are paid quarterly and depend on how much you have invested. Currently, the payout rates for betting 1 VET are 0.00042 VTHOR, which equates to an APR of 1.4%.
Conclusion
So does crypto pay dividends? The answer is yes! Although technically, by definition, they are not actually dividends. Instead, they are rewards that are paid out in cryptocurrency.
If you want to generate passive income from your crypto investments, all five of these options can work for you.
