Usually, people think that the only way to make good money in crypto is through buying and selling cryptocurrencies or participating in ICOs. There are a lot of other ways to make money in crypto such as holding them for passive income. Who doesn’t like passive income?
Some cryptocurrencies will give you passive income over time that is similar to dividends paid out by stocks.
What Are Crypto Dividends?
The traditional definition of a dividend is:
A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors, paid to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.
And when the similar concept of profit sharing is done by various cryptocurrencycompanies, it is termed crypto dividends. Remember, this is different from airdrops because airdrops are basically dilution of total supply that results in dilution of everyone’s holdings.
Different Ways Of Earning Dividends In Crypto
There are different ways by which you can earn dividends in the crypto space by HOLDing a cryptocurrency. However, these differ from currency to currency because each has its own way of operating and has its own rules and regulations.
Some of the most popular ways that actually pay you dividends are:
- Staking-Holding a Proof-of-stake coin in a special wallet.
- HOLDing– Buying and holding a crypto in any wallet.
Based on these different types, I am listing a few cryptocurrencies that I think are worth holding because of their bright future and also to earn passive income in the form of dividends.
List of Dividend Paying Cryptocurrencies To Earn Passive Income
NEO is a popular cryptocurrency and is also known as Chinese Ethereum.
NEO is also a cryptocurrency that exists on NEO’s blockchain. Apart from the NEO cryptocurrency, NEO has one more crypto-token called GAS (formerly know as ANC or Antcoins) which can be staked in an NEO wallet for a handsome return. Also, it doesn’t require you to keep your staking wallets open at all times like in other POS cryptos.
But remember, only a few wallets let you claim the GAS, so you need to pick the right wallet to get the GAS as dividends.
The return one earns is in the form of NeoGAS, which is now worth $44.5 each (at the time of writing this article).
- Ticker Symbol – NEO
- Annual Return – Approx 5.5%
- Staking Wallet – NEON wallet (or you can choose to stake NEO wallet from here)
- Profit Calculator – https://neotogas.com/?p=profit
KuCoin is a world-class blockchain asset exchange that was launched in mid-2017 and has been getting good traction in 2018 because of its business model and marketing push.
Just like Binance, they also have their native token KuCoin shares but their mechanism of rewarding its holders is different from Binance, something I really like.
By holding this KuCoin shares, you receive a daily bonus/dividend called KuCoin Bonus. The bonus you receive is 50% of the trading fees. So you can do the maths that if the volume and amount of coins traded increases on KuCoin exchange, the bonus of holding the KuCoin Shares will increase as well.
- Ticker Symbol – KCS
- Annual Return – Varies according to exchange trading volume
- Staking Wallet – MyEtherWallet or Any ERC-20 Wallet
- Profit Calculator – https://kucoinshares.com/
BridgeCoin is the native token of a new and popular decentralized exchange called CryptoBridge DEX.
The native token of this platform, BridgeCoin, is designed to share revenue with its holders and can be bought and sold like any other cryptocurrency And if you are a holder of BCO tokens i.e. BridgeCoin, you can stake it and earn 50% revenue share of the CryptoBridge DEX.
I like this idea more simply because of the reason that it is a decentralized exchange in the first place and that it has a decent revenue sharing model.
- Ticker Symbol – BCO
- Annual Return – Varies according to exchange trading volume
- Staking Wallet – CryptoBridge DEX
Neblio is a pretty new entrant in this space. It is a blockchain platform for developing Dapps, smart contracts and launching ICOs.
But nowadays it is getting a lot of traction because of its development roadmap and standard examples of executing them.
You can say in a way it is a. competitor of Ethereum, NEO and Qtum like blockchain but I think it is not a zero-sum game so Neblio blockchain will fairly carve its place amongst enterprises like other blockchain-as-a-service platforms.
The ‘Nebl’ token which is the native token of this proof of stake blockchain can be staked in their official wallet and also on a raspberry pi to generate decent 10% annual return on the total holdings.
- Ticker Symbol – NEBL
- Annual Return – 10 %
- Staking Wallet – Neblio qt (Windows, Mac, Linux)
- Profit Calculator – Nebliostats
Komodo is popular cryptocurrency that has anonymity features plus a better consensus mechanism.
It is also part of a broader decentralized economy system called SuperNET and they are also a pioneer in developing atomic swap enabled P2P decentralized exchange called BarterDex.
However, it is not like pure staking where you need to keep your wallet open all the time. Instead, you just need to keep you KMD in a wallet and move around it on yearly basis.
- Ticker Symbol – KMD
- Annual Return – 5 %
- Staking Wallet – Agma Wallet & Swing Wallet
- Profit Calculator – Komodo Support
PIVX is another proof-of-stake currency that is trying to be anonymous by applying Zerocoin protocol.
And just like almost all proof-of-stake currencies, it also has its staking model which pays decently for staking and holding your PIVX coins in a wallet. Moreover, there is no cap for staking.
But in this case, the wallets need to be open and online for a certain amount of time to claim the staking rewards.
- Ticker Symbol – PIVX
- Annual Return – Approx 4.8%
- Staking Wallet – PIVX Desktop Wallets for staking
- Staking Calculator – http://pivx.cryptonode.co/
- Masternode DIY guide- Staking Guide
7. NAV Coin
NAV Coin is the first cryptocurrency that has a dual blockchain for private transactions.
It is a fully functional POS cryptocurrency operating since 2014 based on Bitcoin’s core code. Some of the USPs of this currency are faster transactions (30 seconds), optional privacy with dual blockchains, and a POS staking rewards system that allows you earn while you are sleeping!
There is also no cap for staking.
- Ticker Symbol – NAV
- Annual Return – Up to 5 %
- Staking Wallet – NAV Coin Desktop Wallets for staking
- Staking DIY guide- Staking Guide
There you have it folks. The top cryptocurrencies for you to earn passive income in. No longer will you need to choose stocks as your only option for dividend-paying returns.
There are a few more out there including ARK, LISK, and more that I didn’t cover in this article, but this is a good guideline for you to begin your research.
But if some of you are holding these coins and earning passive income, do let me know your experience in the comments section below.
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