People invest in coins because they hope that they will eventually appreciate in value when they decide to sell them. The model was able to work well for some people, but it also prompted sharp criticisms of a Pyramid scheme or a Greater Fool’s game.
This problem was able to inspire a lot of investors including me to explore coins that can return something aside from an increase in value. Since I recently covered QSP or Quantstamp, I was able to discover another dividend-paying asset that appears promising.
The symbol KCS or KuCoin shares pays bonuses every day to its investors. The amount is relatively small as of the moment which is around $0.15 a day for every $1 thousand that you invest. It is possible to grow exponentially this year.
KuCoin Shares (KCS) vs. KuCoin
The cryptocurrency exchange called KuCoin.com specializes in a lot of different low-market cap altcoins and tried-and-true giants. It has more than 70 coins to trade that is similar to their fellow Hong Kong-based mega exchange called Binance. However, KuCoin is new, and it carved its niche because of its unique offerings.
One of them is that it lists respected-yet-underground coins such as Bounty0x and DragonChain. These are not significant exchanges yet. Aside from that, they also have the lowest withdrawal and trading fees.
Third, they offer dividends to users who hold their native trading token which is the KuCoin shares or KCS. Every day, KuCoin distributes half of their trading fees to the holders of KCS, and they call it the KuCoin Bonus. Aside from that, they don’t get it as KCS tokens but also in the form of every coin that they trade that day. In other words, you will get small amounts of the 70+ coins daily that includes the new coins that they add down the line. KuCoin pays fractions of every coin to the KCS holders.
An Estimate of the KuCoin (KCS) Bonus Earnings
As of the moment, holding 1 KCS means that you may earn approximately $0.002 every day or $0.73 every year. Check out their calculator to see the current estimates.
We admit that it may not seem like a lot considering that the KCS costs $12 a piece. This payout may increase this year because of two primary reasons:
- As a lot of people are using KuCoin, they can collect a lot of trading fees and the size of the payouts may eventually increase.
- Since they pay the dividends in the form of 70+altcoins and more, it is likely for you to gain value that may skyrocket this 2018.
Here are some estimates that underwent adjustments for these factors. I’m not a math whiz, so I kept my formulas simple without compounded interest. You may use this to get rough estimates of how much you may earn:
High Estimate: $30 in dividends per KCS
If KuCoin grows significantly in the next year and ends with a $5 billion daily volume near where Binance is as of the moment, your estimated annual payout may be close to $10 for every KCS.
If we factor in our bags that appreciate over the year with new coins added, some may grow modestly, and others may take off the exponential growth. It may become tough to calculate this with anything other than a gut estimate which is why I’ll multiply the dividend by 3.
3 (growth of coins) x 0.73 x 13 (growth of KuCoin trading volume) = $30
If you purchased 100 KCS, you would get a dividend of $3000. Whatever gain you get from the KCS tokens may increase.
Modest Estimate: $6 in dividends for every KCS
In case KuCoin experienced modest growth and grew to just $1 billion by the end of the year, your bags may grow at a lower rate and the bear market may end up nastier than expected.
2 (growth of coins) x 0.73 x 4 (growth of KuCoin trading volume) = $6
It may not include the value of the KCS tokens that rise which is more likely when the KuCoin quadruples in popularity.
Low Estimate: $0 per KCS
This information may be just a disclaimer, but it is always possible that an investment like this may end up in a bust. Cryptocurrency exchanges may shut down in the past like what happened to Bitconnect and Mt Gox.
There are some concerns about registering KuCoin in China which became particularly ominous because of the legality of the exchanges as of the moment. Compared to this, Binance recently moved overseas.
Finally, KuCoin may stop honoring the KCS as a bonus. It is not a requirement even if shutting down the dividend may mean Public Relations suicide.
Could this be enough reason to sound the alarm? Yes and no. I will not leave a significant sum in any exchange like KuCoin without keeping an active eye on crypto-news. It is essential that you don’t get too comfortable with what you hold and make sure to invest in what you can afford to use. Personally, I don’t think KuCoin may become any riskier than any other exchange at this time.
How you can Use KuCoin.com
In case you used other types of cryptocurrency exchange before, KuCoin is pretty intuitive. You only have to register and confirm your email address to get started.
When you get in, you have to set up the 2-Factor Authentication so you can start trading. You need to scan the QR code on the screen and download the Google Authenticator app on your phone so that you can be all set. Make sure to remember to write down the recovery code and keep it in a safe place.
Fund your account by going to “Assets” then “Deposit.” You can start trading by clicking on “Markets.”
KuCoin is similar to a lot of cryptocurrency exchanges because it provides a detailed trading menu that you may mostly ignore as a beginner. Look for the boxes in the lower right corner that say “Sell KCS” and “Buy KCS.”
If you want to buy one immediately, click on the “Best Price” button and pay for the KCS lowest ask price. Specify the amount of KCS tokens you want to purchase under “Amount,” or you can click the “Max” button to get the maximum amount you can afford. Finally, click on the button “Buy.”
Ways you can Buy KuCoin Shares (KCS) with EURO or USD
As of the moment, KuCoin does not have a direct link to fiat currencies such as the Euro or USD. Instead, you will have to purchase the Litecoin or Ethereum first. Afterward, send it over to KuCoin so you can buy KCS.
It is fortunate that it is pretty easy to buy Litecoin or Ethereum at this point. You may even pick some up on Coinbase in just a couple of minutes.