It is clear to me that most crypto investors are still ignoring the bountiful opportunities offered by exchange coins.
Instead they prefer to look to dedicated DeFi coins for good returns, which doesn’t make sense if there are alternatives which are more profitable and considerably less risky.
Let me explain quickly:
It varies from exchange to exchange, but most exchange coins pay out some sort of dividend related to trading volume. So when the price of highly traded Bitcoin climbs, it doesn’t matter whether it’s Altcoin Season or not, the exchange coins start paying out handsomely. If Bitcoin dips suddenly and trading spikes, the exchange coins also pay out handsomely! In fact, the more that ANY crypto is traded – and we can all see how crypto is one again shooting upwards in popularity – the more the exchange coins pay rewards.
For example: I’ve just calculated the effective APY of my KuCoin Shares (KCS) over the last 7-day period. That figure comes to 34%, which is really not bad!
Similarly, my returns on the Nash Exchange coin (NEX) are growing exponentially. As the exchange becomes increasingly profitable, so my rewards are climbing months by month. In fact, year on year my returns have grown by over a hundredfold! Admittedly, that’s because I was earning almost nothing in dividends a year ago, but my point is still valid and the growth still continues.
My Switcheo tokens (SWTH) outperformed every other coin I staked in the latter half of last year, by some margin. And with Switcheo having launched its new platform (Demex), I’m now not only earning SWTH tokens, but also wrapped versions of BTC, ETH, NEO, USDC, NEX and more.
Binance also has an automatic dividends system (branded as a savings account of sorts), though I prefer manually staking my BNB in the wonderful “Launchpad” opportunities (which the savings account partially invests in anyway). And like some others, using Binance Coin (BNB) for trading fees can make regular crypto trading cheaper, so there’s another automatic valuation system right there.
And all that positive looking APY is without even considering the price rise in the exchange tokens themselves. In my mind, exchange coins are some of the best ROI opportunities in the crypto space, especially if you consider that they are relatively low risk. As you can see, the opportunities apply to both CEXs and DEXs. Please note that the examples I list above are ones I’ve personally seen and benefitted from, but this list isn’t exhaustive and I’m not saying that there aren’t other great exchange coins out there too… such as Kyber Network Crystal (KNC) – please excuse me while I shill the rest of my bags!
I’m not saying that DeFi or any other staking coins are bad. I’m saying that there are genuinely good, low-risk, high-return alternatives available amongst the exchange coins.
Are you missing out?
These coins will not stay cheap forever, they CAN NOT. If they do, then I will personally keep selling off the dividends I make from them and reinvest that money in the exchange coins themselves – I’ll drive their prices up alone if I have to! Seriously though, the market will surely come to realise their value soon, and then they will move out of “bargain” or even “affordable” territory (one might say that BNB has already done so) and you will have missed the opportunity to get in early/cheap. There are referral codes for Binance, KuCoin and Nash in my signature block, it may be a good idea to use them! (For the six remaining people on Earth who are not on Binance yet!)
Yours in crypto
“The secret to success: find out where people are going and get there first”
~ Mark Twain
“Crypto does not require institutional investment to succeed; institutions require crypto investments to remain successful”
~ Bit Brain