Top 5 Coins Paying Crypto Dividends

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

Read on to learn more about crypto dividends and discover a list of the top dividend paying cryptocurrencies.

What are crypto dividends?

Crypto dividends are a form of profit sharing that is paid to investors as part of the revenue or commission of a cryptocurrency project. In most cases, crypto dividends are offered as an incentive to support the development and growth of a project while maintaining the native currency of the project.

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 relation to the number of tokens they hold.

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

The best cryptocurrencies that pay dividends

Now let’s take a 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 multiple ASD tokens.

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

Additionally, users can purchase AscendEX’s ASD Investment Multiple card, which can be used to earn even more rewards.

Storage box (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 own native token called BIX which is an ERC20 token. You can buy and sell BIX in Bibox’s online exchange or via 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 within the app. It also 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 activities, you will receive a percentage of all trading commissions generated by your account as a reward, with an APR of approximately 8%.

KuCoin (KCS)

KuCoin is a popular Hong Kong-based cryptocurrency exchange launched in September 2017. In addition to this deep liquidity, the exchange was also praised for its fast transaction speeds, intuitive interface, and easy-to-use platform.

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

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

Additionally, it also offers users the ability to vote on new listings and promotions through their KCS holdings. 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 number of developer tools that allow users to create smart contracts and decentralized applications (DApps). Consequently, it is also called “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 portfolios over time (dividends). GAS is distributed based on how long you hold your NEO tokens; you get more if you keep them for longer periods. Currently, you receive 0.0003 GAS per day for each NEO in your possession. This equates to an annual return of around 2%.

Note that the GAS in NEO is its native token and is different from the gas commissions 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 ecological and robust blockchain ecosystem.

The native currency of this project is VETERINARIAN, which is an ERC20 token on the Ethereum network. By keeping 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 wagered. Currently, 1 VET staking payout rates are 0.00042 VTHOR, which translates into an APR of 1.4%.

Conclusion

So, do cryptocurrencies pay dividends? The answer is yes! Although technically, by definition, they are not actually dividends. Instead, they are rewards paid in cryptocurrency.

If you want to generate passive income from your cryptocurrency investments, one of these five options might work for you.

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