Cryptocurrency exchange tokens – Can it be profitable

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5 Best Exchange Coins & Tokens in the Crypto world (2020)

CoinSutra » Exchanges » 5 Best Exchange Coins & Tokens in the Crypto world (2020)

  • 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 cryptosphere. 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 evolving 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 2020, IEO (Initial exchange offering) is fueling this growth of exchange tokens and they are becoming a gold mine.

As of 2020, these are the most popular exchange tokens:

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

1. BNB

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.

In case you didn’t know, Binance is the best cryptocurrency exchange in the market as of now. To know more about Binance, read this exclusive guide.

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. BTMX token

BitMax 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 Bitmax exchange is; you should be able to buy other exchange tokens on Bitmax. 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.

3. KCS

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.

4. Bibox

Bibox is an exchange similar to Binance and has a native token called BIX.

The BIX tokens can be used for paying various fees on the platform and the holders of BIX tokens are rewarded with a fee reduction as per the chart below.

Another incentive associated with the BIX is that these tokens will be bought back regularly and burnt until the final supply reaches 200 million, creating an economic incentive for the holders.

Total supply: 264,480,790

Lockup feature:

This feature will let you earn a part of trading fees if you lock up your BIX token for a certain period. See the screenshot below to learn how to lock BIX token and earn incentives:

You also have an option to unlock your token anytime which prevents you from market manipulation.

In June 2020, Bibox announced Bibox Ambassador Global Recruitment which adds more value to BIX token holders. You can read about it here.

5. COSS

COSS is another ERC20 token, which is also the native currency of COSS exchange.

COSS is also an exchange like Binance and KuCoin, with similar features. It will, however, transform itself into a DAO.

For now, COSS holders are paid 50% of the exchange trading fee on a weekly basis.

One can hold COSS tokens on the exchange itself or in an ERC20 wallet like MyEtherWallet to receive the rewards.

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:

An award-winning blogger with a track record of 10+ years. 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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Тему создал/а bobjoemega, November 6, 2020 in Exchanges

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    Community-Focused Exchanges with Proprietary Tokens Are Prospering

    “Community” is a word that is synonymous with cryptocurrency projects, but aside expressing a desire to develop a strong user base, what does it actually mean? For exchanges, having a community-oriented model means consulting customers on new tokens, incentivizing participation, and creating a revenue-sharing system. Binance and Kucoin are two platforms that have tried this model, and it’s been paying dividends.

    From Tiny Acorns to Billion Dollar Unicorns

    Unicorns – startups valued at over $1 billion – are almost as rare as the magical beasts they’re named after. Uber, Airbnb, and Xiaomi all fit that definition. But 2020 created another unicorn, one that the average man in the street will not have heard – Binance. A recent article postulates that the cryptocurrency exchange could be “the fastest profitable unicorn in history”. It took just 143 days for Binance to ease its way into the top three and the exchange has since cemented its place there, regularly claiming the top spot for trade volume. In the last 24 hours, $5.5 billion was traded there.

    The numbers alone don’t tell the true story of Binance’ success however. It, like Kucoin, has been prospering thanks to a business model that is based on listening rather than simply dictating. The traditional model, as used by the likes of Bitfinex, Bittrex, and Poloniex, sees exchanges add new coins and tokens at their discretion, with scant regard for what the community wants. There are reasons why it is prudent not to seek consultation or post prior notice of every new coin listing. However, there are also cases where there are clear benefits to seeking user input.

    Breaking the Wall of Silence

    Up until summer of 2020, Bittrex was the preferred exchange of many altcoin traders. Its popularity came with a price though: the platform’s support channels were constantly badgered by developers and fans clamoring to have their coin listed. Bittrex eventually seemed to wash its hands of altcoins and tokens; since bitcoin gold, it has only made room for Enigma and Unikoingold. Binance has gratefully stepped into the void left by Bittrex’s moratorium on new coins. Each month the community gets to vote on one new addition to the site.

    Instead of putting up a wall of silence, the new breed of exchanges, which also includes the likes of Gate.io and Cobinhood, appear more inclined to listen. Poor customer support and unwillingness to countenance customer feedback are two recurring motifs among exchange users. With Twitter traders earning a passive income from referral links to exchanges such as Binance and Kucoin, it is in these platforms’ interests to keep their users sweet and incentivized. Those incentives can include reduced trading fees and even a share of the platform’s revenue.

    Tokenize All the Things

    In an era where there is a token for everything, it was inevitable that cryptocurrency exchanges would launch their own tokens. Binance and Kucoin have been successful with theirs because there is a genuine use case for them and they add value. The former’s BNB token gained an astonishing 8,000% in 2020 and is currently trading for over $9. Kucoin Shares , which have enjoyed a similar trajectory, see holders paid a dividend of 50% of platform fees.

    The route many tokens issued via ICOs now follow is Etherdelta > Kucoin > Binance, with each new exchange adding liquidity and a commensurate bump in price. In a crypto market where startups such as Cardano can achieve an multi-billion dollar valuation without having released an MVP, Binance is that rarity: a unicorn that is profitable and whose valuation is based on current performance rather than future promises.

    CEO Zhao Changpeng has shown that he’s not afraid to take on established players such as Coinbase and create a viable alternative. A 100 million BNB coin burn is earmarked in future, which will further boost the remaining tokens’ valuation, and Binance also intends to introduce features such as margin trading and a decentralized hybrid model by year four. Bitfinex spin-off Ethfinex is also going down the hybrid route, showing that there’s more than one way to run an exchange.

    What’s your favorite crypto exchange and why? Let us know in the comments section below.

    Images courtesy of Shutterstock, and Coinmarketcap.

    Need to know the price of bitcoin? Check this chart.

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    How to Earn Passive Income in the Cryptocurrency Market

    9 Ways to Become Crypto-Rich

    Passive income is all-the-rage these days as internet gurus tout the path towards financial freedom. This approach focuses on creating revenue streams that payout over time. Depending on the revenue stream, you may be able to put work in upfront that turns into a steady payout over months (or even years).

    The world of cryptocurrencies isn’t just limited to active investing or HODL (hold on for dear life) strategies. We have collected some of the most promising passive investing options for crypto pros. Check out your passive crypto investing options below:

    Before we get into these passive income strategies, a word on passive income.

    Passive Income Primer

    The first goal of passive income generation is to create a set-and-forget revenue stream. Classic examples include eBooks, dividend stocks, rental properties, and creating an app. All of these examples require work to put in place, but after that, offer the chance to generate income over time.

    Of course, not all types of passive income are equal. Here are a few characteristics to consider: upfront costs, time to set up, average hours per week, perceived risk, ease of creation, and ongoing costs.

    Often a good strategy is to cultivate two or more different passive income possibilities, with the hope of establishing one (or more) that creates a nice income stream.

    We’re going to divide our 9 strategies into three categories: trading and market knowledge, technical skills, and right-time right-place.

    Trading and Market Knowledge Strategies

    Passive income strategies in this category require some level of familiarity with buying, selling, and holding the right currencies, and how those cryptocurrencies and their networks function. Here, the crypto you own is used to make money for you through borrowing, lending, earning dividends, or appreciation.

    Network Staking

    Proof of Stake (PoS) cryptocurrencies run on a consensus algorithm. In short, this means the creator of a block on the network is chosen through some combination of wealth or age. Unlike Bitcoin (BTC) which is a mining-driven cryptocurrency, PoS cryptocurrencies users commit some of their balance to essentially power the network. Those who commit more of their balance have a higher chance of being selected by the network to power the stake. Rewards are given for those users involved in staking the network.

    Some possible cryptos to stake include:

    Results may vary here, as those with larger wallets can effectively crowd out less wealthy members on a network.

    Exchange Dividends

    Some cryptocurrency exchanges have native coins that offer fee reductions or dividends when held on the exchanges. These represent one effective way to generate passive income in the cryptocurrency space. With initial exchange offerings (IEOs), more exchanges are showing up with tokens that may offer some real value in the future. As always, proceed with caution with IEOs.

    Depending on the exchange, users can stake exchange tokens that offer dividends or to pay for fees on the exchange. Some of these tokens have grown in value, such as Binance’s BNB coin, a top-eight cryptocurrency at the time of writing. Below are a few other exchanges and the tokens used to power the exchanges.

    Lending

    Lending your owned cryptocurrencies is a great way to earn extra income. In short, you give out your cryptocurrency to a third-party for a fee, who then tries to further profit off of your crypto. This is similar to what banks do when they pay you interest to hold your cash. The crypto-world offers many different types of lending options:

    • Peer-to-peer lending: Ethlend
    • Regular financial services: Blockfi and Celsius Network
    • Decentralized financial services: Compound
    • Exchange lending (on margin): Bitfinex, Bitmex, and Poloniex
    • Exchange interest programs: Bitrue
    • Automated (bot) lending: Coinlend and Cryptolend

    Borrowing

    This isn’t exactly a passive income strategy, but it will give you more leverage and capital to play with. SALT Lending lets you leverage your blockchain assets to get cash loans. This is probably riskier than most of the other strategies, so make sure you read through the terms and understand your plan.

    Technical Skills

    Passive income strategies in this category require some technical know-how, programming skills, or a deeper understanding of how blockchains function.

    Mining

    BTC and other cryptocurrencies that use a proof-of-work system are run by miners, computers that verify network transactions for rewards. While mining for BTC has become prohibitively expensive and energy-consuming, less popular cryptocurrencies like Litecoin can still be mined.

    Depending on the cryptocurrency, you may be able to mine with your CPU, a dedicated GPU, or you may have to purchase specialized hardware. Check out what cryptos you can mine here.

    Masternodes

    Masternodes on a blockchain are computer wallets that host an entire copy of the network. They fulfill an important network function, and while hard to set up, can be profitable. DASH and Energi (NRG) are two altcoins you can masternode. Visit masternodes.online to learn more.

    Trading Bots

    If you can configure a trading bot correctly, it can buy and sell cryptos for you automatically when prices meet pre-selected parameters. You can also arbitrage cryptos, exploiting the bid-ask spread between exchanges. Gunbot is one popular cryptocurrency trading bot.

    Right-time Right-place

    Our passive income strategies so far require work, skill, and some risk. Not so with these next strategies. Luck and being in the right place at the right time will get you further with here.

    Airdrops, Forks, Burns, and Buybacks

    • Airdrops are cryptos dropped into your wallet by an exchange, usually as part of a new crypto offering. Watch for airdrops here.
    • Forks happen when a software update or upgrade creates two versions of a blockchain. Owners of cryptos on the original network get holdings on the new network, as happened with Bitcoin Cash.
    • Burns and buybacks happen when a cryptocurrency is purchased from owners and ‘burned’ in a wallet. Bitfinex and its LEO exchange token is one recent example.

    Collectibles

    Cryptokitties are digital collectibles that live on the Ethereum blockchain. You can collect, breed, and sell these kitties will earning rewards. Get started right meow.

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