TOP-5 dividend-paying altcoins 2023 | Business News This Week

In the traditional financial system, dividends mean the distribution of profits from a company’s shares among its shareholders. This concept also exists in the global crypto asset market, although technically crypto dividends differ from the traditional counterpart.

What are crypto dividends?

Crypto dividends are the distribution of part of the profits from the income or fees of a cryptocurrency project among investors. Typically, this approach is used to reward users who hold the project’s native token in order to stimulate its further growth and development.

In traditional finance, the amount of the payout depends on the number of shares a shareholder holds. The same principle applies in the crypto world: the reward depends on the number of tokens that the user owns.

Crypto dividends from exchange tokens are usually paid automatically. The platform transfers to token holders a part of the income or commissions for trading. If you are just starting to get acquainted with the cryptocurrency market and have just converted some BUSD to ETH for the first time, then you can’t seriously count on tangible payouts. First you need to accumulate a large enough amount.

Other projects, on the contrary, require tokens to be stored in a specific wallet. If you do not comply with the conditions set, there will be no payments.

The best altcoins that bring dividends

Let’s take a look at a few popular dividend-paying coins that you can invest in today.

KuCoin (KCS)

Cryptocurrency exchange KuCoin is one of the top exchanges. Among its strengths, users and experts note high liquidity, high transaction speed, a large selection of trading instruments, and a simple user-friendly interface.

The exchange ecosystem operates its own KuCoin Shares (KCS), which is an ERC-20 token. To receive dividends, the user must store at least 6 coins on the exchange wallet. The remuneration is paid daily, the source of payments are commission fees. Half of the exchange’s daily income is distributed among KCS holders

Users who store KCS in their KuCoin exchange wallet can earn daily staking rewards that represent 5.53% of annual income. Daily dividends are paid out of 50% of the exchange’s daily trading fee income.

In addition to the native exchange, the token is traded on 3 more platforms. Staking yields average around 5.6% per annum. In addition, the token gives the right to take part in voting for new lists and promotions.

VeChain

VeChain is an environmentally friendly platform for developing and deploying smart contracts. Functionally, it resembles Ethereum. The coin is available for purchase on more than 100 exchanges. For storing tokens in their wallet, users are rewarded in VTHO tokens. The payout is 0.00042 VTHOR on day 1 VET. The yield is quite modest – about 2.2%.

Beebox (BIKS)

The Chinese cryptocurrency exchange Bibox offers a wide range of trading options and features, including trading, storage, and wallet services. The ecosystem has its own BIX token, which is an ERC20 token. It can be bought and sold on two more platforms besides the native one.

It is not enough just to keep tokens on the wallet to receive dividends. They need to be traded, making transactions at least once a week. The minimum amount is 500 BIX. If you meet these conditions, you will be paid interest on trading commissions that are generated in your account. The annual interest rate is about 8%.

Komodo (KMD)

Komodo is technically a hard fork of Zcash and like its older cousin, the coin is focused on increased privacy. Zero-knowledge proof is used to allow users to make private financial transactions. In addition, on the basis of Komodo, you can create your own blockchains.

The coin is traded on 20 exchanges.

NEO (NEO)

The popularity of the NEO blockchain peaked during the ICO craze. The platform supports smart contracts, for which it received the unofficial name “Chinese Ethereum”.

The NEO ecosystem is fueled by the NEO token, whose holders can lock coins to receive dividends in the form of GAS tokens. GAS NEO is the second token of the network, which is used to operate and store tokens and smart contracts, as well as pay rewards. NEO’s annual yield is slightly over 2%. The coin is available for purchase on more than 150 crypto exchanges.

Cryptocurrencies that pay dividends do exist. However, before investing in them, do your own research and learn more about the project.