Passive income from cryptocurrency? It sounds too good to be true. Until now, cryptocurrency market participants have counted on the increase in the value of tokens and currencies they hold. There were periods when this strategy has not been successful, even for for several months. It is when profits are slowly being eaten by the sliding market.
On the cryptocurrency exchange, enterprise’ shareholders can at least cash on participation in profits and dividends. Is it possible on the cryptocurrency market today?
Update of passive income from cryptocurrencies
The KuCoin Exchange has decided to update the rules for granting a bonus for holding KuCoin Shares tokens. Below is the present passive income policy:
- instead of small amounts of all tokens traded on the exchange, the holder receives the appropriate number of KuCoin Shares cryptocurrency
- KCS is added to the user’s account on a daily basis, provided that they have a minimum of 6 KCS (value of a bit above 4 dollars)
- the return on investment is over 10% per year (thanks to the fact that interest is added daily, it can be assumed that the return will be over 10%). Each 6 KCS, worth around $ $3.5, brings a monthly $0.033 return.
The investment looks promising in the light of recent, deep price drops on the broad cryptocurrency market. When we described the purpose of investing in KCS a few months ago, the cryptocurrency cost about $1. Today, we can get it for a bit over half a $1 (around 59 cents). It is true that the market has fallen a little, but dividend compensates for the definitely lower price.
Is it worth investing in KCS?
Unfortunately, despite the lower price, the return is much lower, comparing to the previous period. In addition, investors from a few months ago have to accept the large loss of value of tokens. The KuCoin Crypto Exchange prepared incentives in the form of free tokens, competitions and reductions to encourage investors to be active and to register. On the other hand, participation in them means the need to verify the account, which for us can be difficult to accept, because we value anonymity. This policy we expect to continue.
The price level of KCS seems attractive, although the space for falling is still there. Unfortunately, the lack of a decisive upward trend caused an outflow of investors, which translates into a smaller volume of trading on the stock exchange and smaller dividends.
If you have already invested in KCS, it is best to simply collect dividends and wait for the development of the stock exchange and increase the value of your account in the next few years. Remember, that there are periodical token burn, performed by KuCoin management.
If you do not have KuCoin Shares tokens yet, consider investing when the price falls below $0.50 for KCS. We wait there with the purchase order.
One important caveat. KuCoin exchange has suffered a security issue in 2020. Although no customer money has been lost, the trust in the management has been weakened a bit. We are monitoring closely the whole situation. The hack has been managed very well, it seems at the moment.
Normally, becoming a shareholder of the cryptocurrency exchange is not easy
Unless there is a cryptocurrency exchange that offers a low entry barrier. This possibility was also opened thanks to falling prices and one special cryptocurrency: KuCoin Shares (KCS). The cryptocurrency market KuCoin offers users shares in commissions paid by traders and investors. The amount of the commission is fixed and amounts to 50% of all fees from the entire day, to be divided among the shareholders of KCS. It was enough to have only 6 KCS to begin receiving a dividend. It is an equivalent to about $7 in October 2018, while it has been around $20 in May 2018 and again, less than $10 in 2021.
Shares in KuCoinShares are cheaper along with the falling capitalization of Bitcoin and altcoins. Thus, the return on investment in KCS increases as the stock exchange develops quickly and the increasing volume increases the paid dividends every day.
After hacking crisis, KCS seems to be jumping up from the bottom. Price is over $1 again.
How to get passive income from cryptocurrency step by step
- Register a free account on the KuCoin exchange.
- Top up a cryptocurrency account. Remember that commission payment starts from 6 KCS.
- Buy tokens in the profits of the exchange: KuCoin Shares (KCS) for Bitcoins, Tethers, Ethereum or other crypto.
- Hold KCS tokens for at least 24h.
- Every 24 hours, at midnight in Hong Kong, the dividend is distributed.
Exchange customers pay commissions on individual tokens from the cryptocurrency list. Then, they are exchanged to KCS before they have been send to KCS holders in the form of a dividend. Below the fragment of the list, there are old cryptocurrencies, such as Bitcoin, Ethereum or Litecoin, as well as new tokens.
Please note that passive income in the form of daily dividend is paid in KuCoin Shares. Investors can trade many cryptocurrencies and paid commissions, which passive income is going to be earned from. We are updating the list of the cryptocurrencies on the KuCoin exchange:
Is it worth investing in passive income with KuCoin Shares?
In order to calculate potential profits, we need to get some information first and estimate the rest. Let’s start with the basic token data. The number of KCS shares is estimated at 180 million, but in fact, 100 million KCS are being used to calculate the commission payment. For now, we are skipping the information about the limit of the number of tokens in circulation up to 11 million, as reported on CoinMarketCap. The current amount of commission allocated for investors is 50%, however, as the site develops, it will be limited. KuCoin Exchange has announced that the share will not fall below 15%. The trading fee, or commission paid by traders, is 0.1%.
It means, that the payment of a shareholder depends on two factors: the number of KCS shares accumulated and the turnover generated by the exchange customers. The exchange has been developing rapidly for months, and the growth in the number of users significantly increased turnover. The turnover started at around $45 million a day. If you are a holder of 10,000 KCS, you can count on almost $5 daily commission, which gives about $1800 a year (ie more than 5%, and therefore better than on CDs). There were times when turnover dropped, mostly because of the market sentiment. Return on KCS investment is around 10% now, thanks to the big drop in cryptocurrency prices, while popularity of trading on KuCoin sustained it’s levels. These ROI levels are exceptionally high and are expected to “return to normal”.
A bonus that increases profits significantly
In addition to the dividend, KuCoin gives you an additional chance to build an income stream. The referral program has been activated again, where you get a bonus for inviting friends to create accounts on the anonymous exchange without verification. It is a real-time extra commission refund (20%), which is paid for the trading of the users we invite. What is unique, KuCoin also pays for the friends invited by our friends (12%), and so on up to the third level (8%). What’s worth adding, the cryptocurrency KCS followed with bear market, which makes buying KCS token much cheaper than at all time high.
KuCoin invitation code
Where do you find KuCoin invitation code, that you need to invite friends? Accessing KuCoin referral program is really easy. It is in your account profile:
These opportunities combined create almost impossible solution. There is a cheap cryptocurrency which provides passive income with business opportunity for those with large network and communication skills. Register for free and start earning.