Cryptocurrencies are now getting beyond day trading, and people are starting to recognize the true potential of cryptocurrencies to produce outstanding returns in the long term.
Not only can high-potential cryptocurrencies give extraordinary returns when HODLed for a considerable period, but now there are coins that will pay you recurring dividends as well during the holding period.
What are dividend-paying cryptocurrencies?
A dividend-paying cryptocurrency is a digital currency that pays dividends to its holders. Just like you receive dividends from your stock holdings, you can now also receive dividends by holding some cryptocurrencies.
Besides other benefits of long-term investing, dividends are another reason why you should hold your crypto rather than sell them. These are cryptocurrencies that will pay you for simply holding them. So, while you wait patiently for the coin price to increase over months or years, you’ll continue to receive dividends on your holdings. What could be a better way to earn a passive income?
There are only a few cryptocurrencies, as of now, those pay dividends. Some of them pay dividends in pre-decided intervals such as monthly or bi-annually. Others, including the SEEK COIN, pay real-time dividends for every transaction.
Can you receive daily dividends from crypto?
Yes. Depending on the cryptocurrency you are investing in, you may be able to receive dividends daily. In fact, there are some cryptocurrencies that pay dividends for every transaction.
SEEK COIN is a good example of this. It’s a coin that will pay you dividends for every single transaction that occurs in the system. All dividends are paid out in real-time, which means you get a dividend automatically and instantly for every transaction in the SEEK ECOSYSTEM. Here’s how it works.
For every transaction in the SEEK ECOSYSTEM, a 15% fee is levied. A portion of this fee is distributed to token holders in real-time. This is true for every single transaction in the system.
Suppose, if there are 100 SEEK COIN transactions in a day, then you’ll receive dividends 100 times that day. The dividend amount you receive will depend on the transaction value and the percentage of the total SEEK COIN supply you hold.
Why should you invest for the long term?
If you are, like many traders, inclined to trade only in the short-term and have no patience for long-term holding, you may not be able to realise the full potential of investing. Here’s why holding is more beneficial than day trading.
As you may know, the crypto market is prone to extreme volatility. The price of cryptocurrencies could rise or drop by as much as 50% or even more in a single day in this market.
That means your investment in cryptocurrencies can grow or drop significantly in just a day. While it’s a good thing if your profits grow, the probability of the value dropping is just as much. And many investors simply cannot take this kind of risk.
On the other hand, when you invest for the long-term, the volatility of the market gets balanced with time. That means long-term investing is less prone to market volatility and thus will give your holdings a fair chance to grow. That coupled with dividends paid out on every transaction in the SEEK ECOSYSTEM alone is sufficient to make you rich in a few years.
Originally Published at https://thecapital.io/.
In fact, there are some cryptocurrencies that pay dividends for every transaction.
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