Coins are termed dividend coins when it pays dividends to its holders. Entities may create dividend coins for several reasons, but usually, companies who pay dividends to their coin holders often do so as a reward to the holders of the coin by virtue of the trust placed in them, i.e by holding the dividend coins.
A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business (called retained earnings).https://en.wikipedia.org/wiki/Dividend
Since the creation of bitcoin, the cryptocurrency space has grown exponentially, with people netting in profits from all walks of life. It is of little wonder that the mention of the word bitcoin seems to raise a lot of interest.
The assumption that people can only benefit from cryptocurrencies by simply day trading or buying and holding is since waning off. With new technology comes new creative ways of doing things, today there are several ways that you can earn dividend from bitcoin or simply by holding a coin whose sole purpose is to pay you dividends.
Why do entities create dividend coins
The reasons for creating a dividend coin or even paying people bitcoin dividends when they hold your coin varies from one company to the other, but the metrics often remain the same;
- Raise capital for the project; The blockchain bubble led to so many unscrupulous people taking advantage of the interest of others in the technology and it’s earning potential, thus making it extremely hard to just launch a coin and expect a huge following for it especially if you lack a huge marketing budget. Regardless, projects needed to be built thus with skillful thinking came in the bitcoin dividends or dividend coins to fill in the gap where your earnings don’t just depend on what someone is willing to pay for your coins, but also the profits of the company or entity which created the coin.
- Reward investors for their trust. As stated earlier, the number of losses made by individual investors in the lead up to 2018 has led many sore and skeptical about blockchain products and it’s benefits. Dividend coins are a way to raise that interest once again and get people investing in legitimate projects.
- Fund managers are equally using dividend coins to reach to a wider array of people who otherwise might be out of their reach. Consider the opportunity that exists in the entire global economy but most are concentrated in a few countries with high barriers of entry. Wealth managers, use dividend coins to break this barrier and create equal opportunities for all regardless of location.
Benefits of Buying Dividend Coins
- You get paid bitcoin dividends; That is the major drive of dividend coins, they pay you dividends regardless of the value of the coin in current trading conditions, as long as the company makes profits, you earn as well.
- Double earning potential; While earning dividends, you earn more when the value of the dividend coin increases with time and as the project gains maturity.
Types of Dividend Coins
Dividend coins can be termed into two broad categories;
- Wealth Generating Coins
- Reward Generating Coins
Why these two distinctions?
Reward Generating dividend Coins
These are the type of coins that you need to stake (lock a portion of your funds as a form of collateral, and after a given time you are paid some rewards. The project’s that reward you for staking include Tezos (XTZ) which provides a return of 6.5% per annum, Algorand which provides 8-10 % return per annum, others include Komodo, Bitmax, Kucoin, NEO, etc provide varying rates of returns.
The problem, however, with this type of coins is that they require an initial amount to be locked in, and these amounts are often too large for the average individual to take advantage of, but again, what is the point of getting 10% a year when you can make more than that in wealth-generating coins such as the Dorla token.
Wealth Generating Dividend Coins
Wealth generating dividend coins are often created by wealth managers or fund managers. With the advent of the internet and with technologies like blockchain, wealth managers are taking advantage of these and reaching out to more people than was previously possible.
Indeed, the goal of wealth managers is to create wealth, and with creation of coins such as the dorla token you are better able to take advantage of these opportunities.
Wealth generating Dividend coins such as the dorla token benefit it’s holders in several ways, aside it’s expected increase in value, holders of the coin also benefit by simply benefits from the profits of the company.
How to identify Legitimate Dividend Coins
The idea of earning passive income has been drummed into all of us, with technology, the ability to earn online or invest in a dividend paying coin is within reach of almost everyone. However, with great opportunities come the element of risk.
It is very important we identify this risks and to deal with them accurately, one such risk is falling prey to scandalous coins parading as legitimate online investment opportunities.
How do you identify that an online investment opportunity or a dividend coin is legitimate?
- Reviews; Do not just take the words of the website, read about other people’s experiences dealing with them, it is common knowledge that while people may not speak out when they get great services, they will when poorly treated.
- Registration; The company must be well registered and regulated, while Dorla is registered offshore as is a common practice by many wealth managers, others are not registered at all and operating entirely on the internet. Be careful of companies who claim false registrations and also those who do cheap company house registration to add some form of legitimacy to their work while remaining a scam.
- Flee from Multi-Level marketing agencies masquerading as dividend coins. If you get paid only by means of the referrals you made, you are basically in a pyramid scheme, flee from it. and don’t get me wrong, referral systems are great, but not only when your only revenue comes from referring people, in which case, it becomes a pyramid scheme.
- Be wary of high fixed rates; Often internet companies use very high rates to attract the unsuspecting public. Please, there is no investment in this world that can give you 100% in a month, not Forex, not Gold, nothing, flee from these scams. Indeed the best online wealth managers use what we call the varying rates of returns, thus paying out based on performance. These ensure the credibility of the firm and the safety of your funds.
The truth is that joining the best dividend paying coin could yield the most returns for you, but if you join the worse, your story would be different.