As we navigate the cryptosphere looking for best ways to pad our digital wallets, we look for opportunities for “easy money” and what better way than passive, residual income? Bitcoin Cash has such an opportunity.
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Let’s talk about residual crypto income for a moment. I don’t know about you, but when I think about how to make this a reality, three things come to mind.
- Active trading on cryptocurrency exchanges, which requires a certain level of trading skill, patience and time.
- Lending. Platforms like Binance and Nexo give you an opportunity to earn from lending your crypto, and you can learn more about crypto lending here but note that lending has offered less than 2% returns in 2019. If you want to know why, check this out.
- Earning Passive Income through HODLing and Dividends
I’ve done a fair bit of research on HODLing and dividends, and it so happens to be one of the the most popular ways because it is a source of passive income. I’ve done the research in order to share my insight with our Crypto Trader News audience.
HODLing was once considered the most conservative approach to earning through cryptocurrencies. The narrative has changed and while it still doesn’t require a great deal of skills or a high level of effort to manage the funds, it depends on the investor’s awareness and knowledge of different dividend paying cryptocurrencies and platforms in the market. The idea is very similar to those widely used strategies in “traditional” financial markets based on just holding stocks that pay dividends or buying a bond that periodically pays fixed interest.
Bitcoin.com, a widely used platform in the crypto community, launched an application, “The SLP Dividend Calculator”, in August 2019. Launched on the BCH chain, this revolutionary application allows users to build transactions to make dividend payments to any token holder. While this was new for the BCH ecosystem, it gained popularity in the community thus creating excitement and project launches from the BCH chain.
You might be wondering how dividends work in cryptocurrency.
If the SLP token that was created on BCH chain, distributes its dividends through Bitcoin.com’s infrastructure, they can be sent to multiple holders at a specific point in time. The payout is in BCH and it perfectly splits funds between addresses.
Currently there are over 2700 tokens that have been created using the Simple Ledger Protocol framework, as can be seen through the relevant simpleledger.info explorer or through a block explorer that supports the SLP standard.
While BCH chain continues to gain popularity, it has enabled all sorts of exciting features on the platform. One of them is the ability to pay dividends in BCH directly on the blockchain to the addresses holding a specific token type. According to Roger Ver, “This essentially turns SLP tokens into bearer shares that are able to collect dividends!”
How can you earn BCH dividends?
If you hold a token that runs on the BCH chain and gives dividends through SLP Dividend Calculator, you are ready to start earning. Obviously, to manage these SLP tokens there is a need for a dedicated wallet, in which case there are alternatives, as there are different wallets are available and ready to use: Ifwallet, Badger and Electron Cash, proving that several operators are already interested in supporting this new standard of tokens. If you do not have access to a wallet that supports Bitcoin Payment Protocol, you can use the Bitcoin.com wallet.
The entire process takes less than five minutes to complete and you don’t need the skills of a tech ninja to navigate the application. If you’re just as excited as we are, check out the platform at tools.bitcoin.com and send your first BCH dividend payment today.
Currently, Cashgames is distributing BCH dividends to users. Check out their website for more details. Several projects like Honk Honk, Spice, Brave Sound token, Official Honk, ACD coin, Amouranth, Honks and Taylor Swift token may use the SLP dividend calculator for their unique use cases in the future.
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