What are crypto dividends?

Crypto dividends are a form of profit sharing that is paid to investors as part of a cryptocurrency project’s revenue or fees. In most cases, crypto dividends are offered as an incentive for supporting a project's development and growth by holding onto the project’s native currency.

What are dividends and how do they work?

Dividends are often paid out as cash – or, in the case of cryptocurrencies, the native crypto asset of said crypto project. Real-world stocks listed on the various stock exchanges worldwide can not only pay out cash dividends, but they may also pay out to shareholders as additional shares in the company.

Are cryptocurrency dividends taxable?

Crypto rewards are also taxable as ordinary income. By contrast, dividends paid on most company stock are taxed at the long-term capital gains rate. This means most investors will pay a higher tax rate on cryptocurrency dividends.

Can dividends from blockchain and cryptocurrency stocks provide passive income?

Dividends from blockchain and cryptocurrency stocks can provide passive income. Learn what these dividends are and stocks to consider investing in. Historically, the stock market has been the greatest creator of wealth.