The fact that one of the greatest wealth-creating assets have been stocks can’t be denied, and if any individual just invests in the S&P 500, he can make an exit with a good amount of return.
Historically, stock markets have been rewarding their investors with around 7% returns per annum mathematically doubling their investments once in a decade. But have you ever heard about Cryptocurrency Dividends?
The stock market works on the compounding factor And.
it also requires re-investments of the dividends you get from your stock investments. Well, the majority of stock market investors are aware of this fact and are successfully compounding their wealth.
As for cryptocurrencies, people think that the only way to earn a significant amount of money.
From blockchain and cryptos is by trading. Well, it is not completely true as there are other ways too in which the investors can get rewarded from the investments in cryptos.
In this article, we are going to discuss top crypto that pays dividends to their investors.
Also, if you are a beginner in the cryptos industry and blockchain technology, then you are advised to go through other articles on which platform or cryptos exchange to use, how to use binance, how to buy crypto on binance, and other popular exchanges.
Cryptocurrency Dividends: Everything You Need to Know
Cryptocurrency Dividends are completely different from the dividends investors get from their stock investments. In the stock market, stocks that are making profits and have some extra cash reward their investors with dividends.
Meanwhile, in the case of dividends received from cryptos investments, payouts can differ as in this case, it depends totally on the trading volume on a crypto exchange and hence the payouts can be calculated on a daily or monthly basis.
Another necessary thing to be kept in mind is that though the dividends from cryptos are more variable than those from the stocks, the yield is higher a majority of times.
Therefore, the tax levied on LTCG, long-term capital gains on the crypto dividends are higher than the dividends earned from company stocks.
Ways to Earn Dividends in the Crypto Industry
There are no set rules or ways to receive dividends from cryptos assets as every currency has different methods of operating and functions on a varying set of rules and regulations.
However, the most popular ways to earn dividends in the cryptos market are:
Holding – Holding stands for purchasing any crypto asset and holding it in any digital wallet for a significant period of time.
Staking – Staking means holding proof-of-stake coins in a supported platform or wallet. It is basically locking or staking coins in a digital wallet.
Blockchain and Cryptos For Dividends
A popular currency existing on the blockchain of the same name has another token called GAS, which is capable of staking in a NEO wallet for receiving decent returns.
However, one thing to keep in mind that not all wallets let the users claim the crypto-token.
Expected Annual Returns – 5.6% approximately.
Another famous currency that is a part of SuperNET, a wider decentralized economic system. It pays its users for just holding the digital asset in their wallets.
Expected Annual Returns – 5.1% approximately.
A first-class exchange that received decent traction in the year 2018 the reason behind it was its model and marketing leads.
One of the most rewarding things about investing in this digital asset is that the user receives a daily bonus. The bonus is half of the trading fees of your daily transactions, more the trade, more the bonus.
A proof-of-stake asset that is about to apply the Zerocoin protocol in order to reach anonymity. However, in a quest to claim rewards, in this case, the wallets are required to be open and online.
Expected Annual Returns – 4.9% approximately.
The native coin of this extremely famous exchange is BTMX and the best thing about investing in this coin is that the exchange lets.
you earn a certain percentile of the exchange income. Moreover, the reward this exchange gives to its users is distributed daily.
So this coin may be the answer if you are looking for the best option to invest in cryptocurrency dividends assets.
Apart from the above-mentioned currencies and tokens,
there are numerous options available in the market for investors to invest in dividend-paying assets. As the trend in cryptos investments and trading volume is increasing, many people are looking out for ways in the crypto market to set up a source of passive income from this industry.
In the near future, we are going to witness a huge rise in the numerical values of staking, holding, and even trading.