Cryptocurrency dividends pay the highest interest of all asset classes. A dividend is a share of profit paid by the company to its investors and shareholders.
Currently, the interest rate that you get from banks is negligible, and stocks usually pay between 4-6%. Some coins with a higher market cap pay up to 10% and crypto stable coins pay up to 20%, while on some cryptocurrencies you can even earn up to 100% per year.
Usually, when people think about dividends they think of those that traditionally come from stock market investments. Crypto dividends appeared in 2018, with the introduction of decentralised finance. This gave people the ability to do yield farming, staking, liquidity providing, lending, and earn interest on their investment.
Crypto dividends and different earning methods experienced a huge surge of demand and despite high volatility, they became the best way of earning interest.
Crypto dividends are rewards that are earned for holding or performing a specific action with different assets. The amount of dividend granted is frequently based upon the amount of cryptocurrency the investor holds or, if they receive dividends for performing a specific action, this could be through staking or claiming a reward on their platform.
The interest rate is usually represented in annual percentage yield (or APY) and represents the returns over a period of a year.