Bitcoin Revolution – Dividend Paying Cryptocurrencies
You’re no doubt familiar with the concept of dividends and shareholders. Shareholders buy shares, or invest money, in a company, which helps finance that company. In return, the shareholder is paid ‘interest’ on the money they’ve invested in the company. How much depends on how many shares they own. This ‘interest’ is a called a dividend; it’s a hugely popular type of passive income. Likewise, some cryptocurrencies also offer a dividend to those who hold their currency.
These types of ‘investment’ or dividend paying cryptocurrencies similarly offer a good opportunity to earn passive income. They’re commonly offered by crypto exchanges that have their own coins, referred to as ‘native coins’. Reduced fees are often included in the ‘bundle’.
So who should consider investing in a cryptocurrency that pays interest?
If you like the concept of investing in good crypto coins and putting those coins to work earning you passive income by way of dividends then this could be for you. Here are a couple of simple strategies that can work out very well for you.
Identify The Right Coins To HODL
The first step is to identify good coins. You’re looking for coins that will reward you for holding onto them. Coins can do this by increasing in value so that when you decide to sell them, you’re making a profit on your original investment. This is called buying and HODLing coins. Incidentally, that’s not a typo, or at least not anymore in the cryptocurrency world. It’s the standard term for this type of cryptocurrency investing, although it did start out as an error.
Investing In Native Coins
Another way coins can earn you money is by paying you dividends or interest for holding them. As time goes on there will be more and more dividend paying cryptocurrencies available (currently there are over 1300 different types of cryptocurrencies out there and counting). The way to find a cryptocurrency that pays interest is to look for crypto exchanges that have their own coins (called native coins) and who offer dividends and reduced fees to users who hold these native coins. In many cases you’re not even required to stake ie hold in your own wallet, these coins.
If long term investments aren’t your ‘thing’ an alternative way to invest in the cryptosphere is to consider short term trading. This is where you buy and sell quickly in order to take advantage of the sometimes significant swings that can happen within a few hours. Automated trading platforms like the one behind the Robert Downy bitcoin revolution have smart trading algorithms that identify favorable buy and sell opportunities and place trades instantaneously, far faster than a human can. That makes them ideal for beginner traders or even more experienced ones who just want to ensure they’re making the most of all trading opportunities that come along.