Dividend stocks are popular among equity investors because they allow shareholders to earn investment income in addition to capital appreciation. The equivalent of dividend stocks in the crypto markets are cryptocurrencies that pay dividends.
Read on to learn more about coins that pay dividends and discover a list of three popular dividend-paying cryptocurrencies.
What Are Cryptocurrency Dividends?
Crypto dividends are a distribution of a portion of profits earned by a cryptocurrency company to its token holders.
In the traditional financial markets, dividends are either paid in cash or shares. The same concept applies in the cryptocurrency markets where crypto dividends are paid in cryptocurrency. Typically, transaction fees earned by the exchange are shared among token holders as de facto dividend payments.
Read on to discover three popular dividend-paying cryptocurrencies.
Top Coins That Pay Dividends
KCS was launched in mid-2017 as an ER20 token by KuCoin – a digital currency exchange from Hong Kong. KCS is among the most-watched coins that pay dividends. At KuCoin, investors receive daily dividends, amounting to 50% of the income received from trading fees charged at the exchange. The payments vary from month to month due to fluctuations in volumes traded and the amount of stake held at the exchange.
Other benefits that come with KuCoin shares include airdrops and management rights. However, these don’t form part of the dividends. KuCoin’s popular platform is the reason behind its huge success.
Its stakeholders continue to benefit from the growth that is occurring within this exchange. Any trader holding six or more tokens is eligible to receive daily dividends. The dividends depend on the number of coins a trader holds on the exchange and the total volume of trades within the exchange.
ASD is another cryptocurrency that pays dividends to investors. AscendEX is a digital currency exchange launched in 2018 and based in Singapore. The exchange’s token allows investors to earn a portion of the income from transaction fees as dividends. The demand has been growing over the years with a sharp increase noted between February and March 2021.
Compared to KuCoin, AscendEX offers 80% of exchange fees income as crypto dividends to its investors.
2021 has seen AscendEX go through a fund drive to the tune of $50 million led by Hack VC and Polychain Capital. The funds are expected to accelerate their entry into international markets. This makes it a company to watch in 2022. AscendEX currently serves over one million retail and institutional traders and has assets to help investors get more from their investments.
INEX is a new entrant in the cryptocurrency space after launching its coin within its own exchange in the 4th quarter of 2021. Internet Exchange Token (INEX) intends to list cryptocurrencies and controlled security tokens for retail and institutional investors.
INEX has also joined the band of cryptocurrencies that pay dividends as it intends to distribute all profits from its exchange among its token holders. This distribution depends on the number of tokens each crypto investor holds.
INEX Token is also available on three other exchanges including IDEX, Resfinex, and Mercatox, with the possibility of being on more in the future. INEX tokens can be bought using cryptocurrencies such as bitcoin (BC) and ether (ETH) through the Mercatox exchange. It is an ERC20 token that uses the Ethereum blockchain for its operations.
The Bottom Line
Cryptocurrencies that pay dividends is quite a new concept that has attracted positive attention from crypto investors who are looking to earn investment income on top of potential capital appreciation. But like all investing, buying dividend-paying coins carries risks, so make sure you conduct your own research before you buy any and never invest more than you can afford to lose.
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