- Do you like earning regular dividends as passive income?
- Do you like holding good crypto coins?
If your answer is affirmative, we have similar strategies to make money in the crypto sphere. And if you are not aware of these strategies, don’t worry. You can learn them today by reading this article.
The strategy is simple – identify good coins that reward you in one way or another for holding them. And believe me, with the growing cryptosphere, the opportunities to earn dividends via passive income are also increasing.
One such strategy is to identify crypto exchanges that have native coins and offer certain dividends and fee reductions to its users for holding their native coins. Especially in 2021, IEO (Initial exchange offering) is fueling this growth of exchange tokens and they are becoming a gold mine.
As of 2021, these are the most popular exchange tokens:
- Binance: BNB token
- FTX Exchange: FTT token
- MXC exchange: MX Token
- Uniswap: UNI (DEX)
- Curve: CRV (DEX)
- 1inchexchange: 1inch
- KuCoin: KCS
- Huobi: HT token
- OkEX: OKB Token
For now, I will list some crypto exchange coins that offer dividends and reduced fees.
Best Crypto Exchange Coins For Bonuses Or Lower Transaction Fees
BNB aka Binance token is a native coin of Binance exchange, also an ERC20 token, with a fixed supply of 200 million. Out of this, 100 million BNB tokens were distributed during the ICO last year.
You can use BNB to pay any fee on the platform, including, but not limited to:
- Exchange Fees
- Withdrawal fees
- Listing Fees
- Any other fee applicable
Apart from this, when you use BNB to pay for exchange fees, you will receive a significant discount according to the chart below. You can see their fee structure in detail here.
Last, but not least, the token economics of BNB is set in a way that not only you will receive exchange fees reduction, but the net worth of your tokens will keep increasing with time because Binance will buyback 20% BNB tokens every quarter and burn them until the total supply reaches 100 million.
This will naturally drive up the price of BNB tokens. You can learn more about BNB token in our Binance exchange review here.
Disclosure: I bought BNB tokens at $12 a few months ago. Today they are valued well above $15 per coin.
2. FTT Token
FTT is the backbone of the FTX ecosystem. The team has carefully designed the incentive schemes to increase network effects, demand for FTT, and to decrease its circulating supply. Thus, increasing utility of the token. For the white paper of FTT Token click here.
Benefits of FTT token:
- Token Burn / Revenue Share
Approximately one-third of all fees generated on FTX is used for an FTT repurchase. Any FTT bought this way is burned.
FTT can be used as collateral for futures and margin positions. This increases utility and demand for FTT.
- Discount on trading fees
Customers who hold a certain amount of FTT for a period of time will receive a discount in the form of lower transaction fees. This will further increase demand for FTT.
- OTC Rebates
Customers who hold enough FTT will receive rebates from all of their OTC trading on FTX.
- OTC burn
There will be a repurchase and burning of FTT based on OTC volumes and revenue from the FTX OTC portal.
- Staking rewards
FTT can be staked on the FTX exchange. Thus, the token holders can earn staking rewards.
FTT Unlock Schedule (Source – link)
The Market Cap of FTT is USD 1.89 Billion with an impressive daily trade volume of USD 38.5 Million. The token has a total supply of 340 Million with a circulating supply of 89 Million (26% of total supply). Finally, with the growth potential of the FTX exchange, there is a substantial potential upside to the FTT Token.
3. MX Token
MX is a native token of MXC Exchange which has been recently picking a lot of interest around the globe. Read our full review of MXC exchange here.
MX is also the proof of rights of the MXC community. That is, MX holders have the rights for community event voting and team election etc. This leads to maximisation of the ecological profits of this self-governed community.
MX holders can enjoy a series of rights and interests including asset appreciation, rebates on platform revenue, supervision, voting, etc. The token can be obtained in two ways: mining and buying.
Benefits of MX token:
- 100% of profits earned by the exchange from spot and ETF trading are used to buy back MX Token, thus controlling the supply of the token in the market,
- A 20% discount on a trading fee on spot trading,
- Token holders can vote on listing new coins,
- Token holders can participate in MX Defi yield farming
- Token Holders have access to token lotteries such as SpaceX
With a decent Market Cap of USD 56 Million and daily trading volume of USD 31 Million MX token seems to have substantial growing potential. The coin has a total supply of 608 Million with a circulating supply of 127 Million (21% of total supply).However, everything is not marvelous when it comes to MXC Exchange. Read our concerns about the exchange in our detailed review here. Investors are advised to DYOR before investing.
4. BTMX token
Ascendex seems to be another upcoming exchange which is following the suit of Binance exchange. The native token of Bitmax (BTMX) offers many great rewards and features. An ERC20 based token which has a limit of 10 billion BTMX. One highlight of Ascendex exchange is; you should be able to buy other exchange tokens as well. This is something unique and made it worth exploring BTMX from investment perspective.
Features of BTMX token:
- Pay dividents for users who lock BTMX token
- Participate in IEO (Bitmax Launchpad)
- Trans-fee mining: When a user pay transaction fees for a trade, the platform incentivize in BTMX token. The platform deducts trade transaction fees from traders and then credits their account with BTMX tokens of the same value
Here is the allocation plan for BTMX token:
- 49% of total issuance is set aside for pre-distribution (5% – early supporters, 4% – strategic partner, 12% – team and platform, 18% – Foundation, 9% – private sales, 1% – marketing and operating)
- 51% would be released and distributed to incentivize users daily to participate in transaction mining, total BTMX in circulation = daily mining production of BTMX / 51.
- 10% of the private sale portion (which is 9% of total issuance) would be released prior to the rest of 49%, hence it is designated as a pre-release amount (0.9% of total issuance).
Pre-distribution Token Unlocking Mechanism:
- Unlocking Mechanism: The number of tokens distributed as part of pre-distribution (49% of total issuance) would be unlocked daily according to the ratio of 49:51 where 51 refers to the day’s mining production output
- Unlocking Priority: The 10% in the private sales portion (Pre-release) would be first prioritised for preferential unlocking. The rest of the pre-distribution tokens will afterward be subject to the Unlocking Mechanism as described above on the pro-rata base.
KCS is the native token of the well-known KuCoin exchange and is quite similar to Binance’s BNB.
KCS aka KuCoin Shares is an ERC20 token, 100 million of which were distributed in the ICO last year.
You can see the reward ratio of holding KuCoin Share tokens below.
Understandably, holding KuCoin Shares is a win-win situation in both the conditions if you are HODLer or trader.
Also, similar to Binance, 10% of their profits will be used in buying back KCS and burning them so that the holders of KCS are rewarded more as a result of the appreciating price.
Conclusion: Best Crypto exchange dividend coins
All the exchanges listed above have similar advantages and it is a profitable idea to hold these tokens. I say profitable because the crypto space is still growing and has not reached its saturation level.
Also, I think such tokens are a must in any crypto portfolio because these tokens are low risk with decent rewards.
That’s it from my side in this article.
Do let me know of the tokens/coins that you intend to buy and hold. Also, share with me if you know of any other crypto exchange coins that pay dividends or offer a reduction in fees for holding them.
A few other hand-picked articles for you to read and widen your knowledge base:
- Top 5 Websites To Buy Ripple (XRP)
- Best Smartphone Apps For Trading Cryptocurrencies On The Move
- What Is Atomic Swap and Why It Matters? [Must Know]
- YoBit Exchange Review: Legit or Scam?
- Binance Alternatives: Crypto Exchanges Similar To Binance
Harsh Agrawal is the Crypto exchange and bots expert for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in the fin-tech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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