What Are Crypto Dividends?
When we talk about dividends we refer to a portion of a company’s earnings which are paid out to its shareholders. This portion of earnings is decided by the board and represents a reward for investing in the company. It can be in the form of cash, shares, or property.
The dividend model is a traditional form of investing, however, it is also used by various cryptocurrencies. These are called crypto dividends, or scalping bitcoin, and they allow holders to accrue income from investing in certain cryptocurrencies. Crypto dividends differ from airdrops, which are a dilution of holding following a dilution of total supply.
You can earn dividends from cryptocurrencies in various ways. Typically you HOLD a dividend-paying cryptocurrency in a special wallet. Choosing the right currency is essential as it needs to have a bright future and dividend-paying potential. In this post we list the best ones to opt for.
Komodo is part of the second generation cryptocurrencies that is both extra secure and offers better anonymity features and consensus mechanisms. This currency is also part of a broader decentralized economy that pioneers new forms of exchange and currency interaction.
Launched in 2016, the Komodo platform is designed to be secure and progressive. It is privacy centered allowing users of KMD currency to make private transactions with zero-knowledge proofs. It also uses its own decentralized exchange or diCO to facilitate better blockchain solutions.
Komodo currency is also a dividend paying cryptocurrency that allows holders to receive up to 5% interest per year on their KMD. To benefit you will need more than 10 KMD in your wallet, but unlike other currencies your wallet doesn’t have to be continuously open.
Like many modern cryptocurrencies, BitMax originated in Singapore. This particular currency was launched in 2018 and is available at two domains: BitMax.io and BTMX.com. The team behind this cryptocurrency come from the world of finance and have extensive experience in banking and asset management.
BitMax supports trading in a range of currencies and uses an easy deposit system. They have partnered with Simplex, an EU-licensed payment processing company that allows you to buy digital assets securely, using standard debit cards. Investing in cryptocurrency has never been easier, or safer.
The native coin is called BTMX. Apart from Offering good rates, BTMX has the further advantage of allowing you to earn a percentage of income as a dividend. BTMX is an excellent investment because it’s price is low but its popularity is steadily growing. The currency allows you to lock your coin and withdraw any time.
Like many of its generation, Kucoin was launched in 2017 as a secure and sophisticated cryptocurrency. It offers a world-class blockchain asset exchange with a business model and marketing campaign that makes it the obvious choice for many first time investors.
As with other cryptocurrencies in the exchange, Kucoin has its own native token. In this instance it’s called KuCoin, as opposed to KMD or BTMX. However, KuCoin tokens have a slightly different mechanism for rewarding its holders. Instead of annual dividends, KuCoin gives you a daily bonus.
It works like this. When you buy KuCoin shares you receive a daily bonus or dividend. This is called a KuCoin bonus. The bonus you get is typically 50% of the trading fees. This means that if the volume of KuCoin traded increases your daily bonus on KuCoin shares will also increase.
NEO has a slightly longer history than the previous cryptocurrencies. It was first launched in 2014 and is commonly known as Chinese Etherium. NEO is an open-source decentralised blockchain platform that offers secure and profitable digital assets.
NEO differs from standard cryptocurrencies in that it has a second token. Along with its NEO token on the blockchain it also has one called GAS – previously known as ANC or Antcoins). These second tokens can also be held in a NEO wallet.
Staking GAS tokens in a NEO wallet will provide you with a profitable dividend return. Other wallets will also allow you to hold GAS tokens, but you need to be careful when choosing one; not all wallets will help facilitate a dividend using these GAS tokens.
Neblio is a relevantly new cryptocurrency with its own proof of stake digital token. As with other currencies in the ecosystem, Neblio also has its own block chain network to facilitate secure transactions between members.
Although it’s a late starter in the crypto-industry, Neblio has gained traction quickly. This is partly due to its development of an effective roadmap and standard of implementation. In today’s cryptomarket there is enough room for many players but the art of investing is choosing the right ones.
The Nebl token may not offer the highest dividend return, a 10% annual return on Nebl holdings. However, as a new currency with excellent infrastructure and a growing reputation, buying Nebl might just be the savvy investment you’re looking for.
PIVX stands for Private Instant Verified Transaction. It is another Proof-of-Stake cryptocurrency established as a decentralized project with a focus on community governance. As with previous cryptocurrencies PIVX offered effective dividend returns.
Like the majority of proof-of-stake currencies, PIVX has its own staking model that pays dividends for staking the currency and holding it in your wallet. With PIVX, unlike competing cryptocurrencies, there is no cap for staking.
There is, however, a catch. Unlike some previous currencies PIVX wallets must be open and online for a period in order for the staking rewards – the dividends – to be claimed.
Nav Coin is another obvious choice for crypto-investors looking to claim a return on currencies through dividend profit. Nav Coin was established in 2014 and is fully based on the Bitcoin core code, making it secure and reliable.
Investing in Nav Coin will give you faster transactions, around 30 seconds, extra privacy options with its dual blockchains. Nav Coin also offers investors a POS staking reward system that lets you earn dividends while you sleep.