Do you know how crypto-currencies pay their investors? Yes, the crypto dividends are a way through which investors of crypto-currencies are paid for their profit sharing and being a part of crypto-currencies project revenue. In most cases, crypto dividends encourage investors to support the development and growth of the project.
If we talk traditionally, dividends are paid to the shareholders on the bases of several shares they have in the company. It is identical in the industry of crypto-currencies. In the crypto sector, investors have tokens and get rewarded according to them. The DividendDividend is now given based on the number of tickets they have.
In crypto-currency, dividends are played automatically, so the investors don’t have to perform any specific action. But your effort is needed when you want to exchange your dividends for trading fees or like to share them for revenues. Contrarily, some crypto-currencies offer rewards only if you have the token in a specific wallet.
Best Crypto-Currencies Paying Crypto Dividends
There are about five popular crypto-currencies that pay dividends.
- AscendEX (ASD)
AscendEX was previously called BitMax, which is based in Singapore. ERC-20 ASD tokens are the power of the ecosystem; automatic Airdrops are the form of dividends only investors can get who are holding ASD. This platform has a reward system in which investors holding more ASD tokens can have more rewards.
There is a system called the staking system through which AscendEX pays dividends; this system lets the investors earn more than 50% of the total profit.
In simple terms, if your investment only grows by 10%, this means you can have your profit from 50% of the growth. And remaining half will be back into the network. This is a plus point because if your investment shrinks to 10%, you will still get half.
- Bibox (BIX)
This digital asset exchange was launched in china in 2017. It is a famous exchange system with many features, storage, wallet services, and trade options.
The Bibox comes with its native token of ERC20, called BIX. You can easily buy or trade BIX using Bibox online exchange or even through your mobile exchange app.
Bibox’s only goal is to make it easier for investors to buy or sell crypto assets using any exchange app. Moreover, Bibox allows its users the fastest withdrawals with low transaction fees.
It is also effortless for you to earn dividends of Bibox; you only have to lock 500 BIX in your account, but you have to trade at least one BIX per week. After completing the task, you will receive a trading fee generated by your account as a reward with an 8% of APR.
- KuCoin (KCS)
A popular cryptocurrency exchange based in Hong Kong is KuCoin, established in 2017. Many investment companies pressed the deep liquidity of this exchange due to their fast transaction speed, easy-to-use platform, and user-friendly interface.
For the user of KuCoin, they offer a wide range of trading pair and crypto-currencies exchanges. Additionally, KuCoin users pay dividends daily to their KuCoin KCS token holders. This procedure is done by calculating 50% fees of the KuCoin holder.
The KuCoin token is ERC20 which runs through the Ethereum chain. So the investor with a KCS token will earn their dividends very quickly; they only have to stake their token on the platform.
Always remember the more tokens you have, the more your earnings will be returned as a staking reward. This feature makes KuCoin different from the others. The Investors can also use their KCS holding to vote for the listings and promotions. And the more tokens you have the more power to vote you will get.
- NEO (NEO)
NEO was previously known as AntShares, which is a blockchain platform that allows its users to issue digital assets, or you can call them smart contracts.
These digital assets or smart contracts can be traded on the NEO platform. Investors can use many developer tools to make changes in their investments and decentralize the applications.
The power of the NEO ecosystem is called GAS, an internal currency that is easy to use to pay the transaction fee and is rewarded as dividends. GAS distribution depends on the investors and how long they can hold their NEO tokens. The longer you have, the more you get.
- VeChain (VET)
This blockchain project was founded in 2015. This smart Contracts platform works similarly to Ethereum and NEO. The ecosystem contains a robust blockchain, which is eco-friendly. On the Ethereum network, the native coin is VET with ERC 20.
VTHOR coins will reward the user if they hold VET coins in their wallet. The VeChain system is also the native token. Dividends are paid according to how must you have asked and quarterly, depending on payout rates.
Crypto Dividends: How Do You Pay Taxes?
The laws for taxation of crypto dividends vary from county to country. The reason is that cryptocurrency regulation is developing day by day. This completely depends upon the user they have to find out whether they are obliged to pay crypto dividend tax or not.
There are different forms for these crypto dividend taxes you have to fill those forms from time to time.
According to the IRS, cryptocurrency dividends are considered property so if you are a crypto seller you have to fill out the crypto dividend tax form which is also called capital gain and loss.
The company’s earnings, which are paid to its shareholders, are called dividends. There are about five crypto-currencies that pay their investors dividends.
Each currency has its own rules about payments. And these companies allow the investors to hold their coins in their wallets, and, later, they will get dividends according to it.
A Dividend is a way to encourage developers and growing projects. Every investor has tokens that they use to pay the investors. In dividends, gain tax is also an important consideration. Investors with high tax brackets prefer paying dividends through stocks.