Most people understand the value of cryptocurrency today. However, were you aware that some cryptocurrencies have other money-making advantages, like dividends? If you didn’t know, crypto dividends are now paid as an incentive. In the next sections, let’s look at some cryptos that pay dividends.
Is Cryptocurrency Staking the Right Choice?
Investing in multiple streams of revenue and passive income is important. For example, Crypto dividends are paid as a part of a company’s profits, offering a generous yield. On the other hand, staking is when you commit your digital assets that support their entire blockchain network to validate transactions.
In other words, to get staking rewards, you lock your crypto assets for a set period to help support the operation of a blockchain platform. Furthermore, when you stake your crypto, you get more cryptocurrency. Using your crypto to vouch for blockchain transactions earns you more cryptocurrency.
Cryptocurrencies pay dividends, and each cryptocurrency has its way of earning dividends. However, it is important to note that not all cryptocurrencies pay dividends. However, you can earn passive income when you invest in the cryptocurrencies that do.
Top Cryptos That Pay Dividends
If you are interested in investing in cryptocurrency dividends, there are different cryptos you can invest in to start earning dividends. Here are the top best dividend-paying cryptocurrencies on the market. However, remember that you have to hold their native token to earn.
1) Battle Infinity
Battle infinity is a unique crypto gaming platform and one of the best staking systems. It has DeFi, NFT, and Metaverse elements condensed into one. Battle infinity is the primary currency used for transactions, staking rewards, and swapping. When it comes to staking, there are three types:
- Solo Staking
- Duo Staking
- Crates Staking
Image source: battleinfinity.io
Another feature you might be interested in is IBAT premier league. It’s a fantasy sports game where you can easily buy IBAT tokens to earn passive income. Crypto investors can buy the tokens at a fixed rate of $250. Each token costs $0.0015. Battle infinity has multiple features that you can earn interest on if you have some knowledge of cryptocurrency stocks.
FTX exchange has over a million users. It is a crypto derivative exchange where you can earn crypto dividends on leveraged products. With FTX, token holders are entitled to earn passive income through dividends. Remember that the higher your staking tier is, the higher your staking rewards will be.
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The first tier of FTX is best for anyone who has yet to have any coins to stake. You will be given a 25% referral rate. Other FTX benefits will not be available to you. To have all the benefits of the top tier, you must have a trading volume of 1,000,000 FTT. In this tier, you will get a 40% referral rate, a 0.0030% maker fee rebate, and 1000 free FTT withdrawals, among others.
Apart from leveraged tokens, you can also venture into spot markets with more than 300 crypto trading pairs. The trading fee for all transactions is 2%. You don’t need specialized skills or traditional finance knowledge to join FTX and get passive income since it’s a centralized cryptocurrency exchange.
NEO is one of the best cryptocurrencies that pays dividends. While the dividend payout might not be much, it is very stable. NEO is a governance token that acts as a share of the blockchain. You can be voted in as a bookkeeper node when you own NEO. Additionally, it generates GAS as a utility token.
Image source: coindesk.com
Token holders with NEO can buy it on a good exchange such as Kucoin or Binance. Holding your NEO wallet on these exchanges automatically generates GAS, which is needed for NEO smart contracts. If you have a relatively big stack of NEO, it’s wise to buy a Ledger. Ledgers are the safest and easiest-to-use hardware wallet.
Since GAS is the token used to pay for the NEO ecosystem and blockchain, it works as a dividend. The GAS price is $70, which you can cash out in fiat. NEO is less profitable than most cryptocurrencies; however, it is a great investment.
The most lucrative part about Komodo is that the projects can create their blockchains and host token sales. This is how you can receive dividends. Komodo is a derivative of Z-cash. This means that all the features previously on Z-cash are now on Komodo. Features like the zero-knowledge proofs protocols are perfect for crypto dividends.
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With a multi-chain platform, multiple blockchains process transactions simultaneously. This process synchronizes the processes to achieve blockchain interoperability. The interoperability makes it possible to transfer value without performing a swap or a trade. This is called a cross-border transaction system. Additionally, with the AtomicDex platform, you can perform peer-to-peer crypto trades and exchange tokens.
You can exchange two coins from one user to another. The AtomicDex platform can support peer-to-peer swaps for at least 95% of coins. Komodo was the first crypto to bridge the gap between Bitcoin-based coins and ERC-20 tokens.
5) NAV Coin
NavCoin is a proof-of-stake crypto that provides users with fast and simple dividends. It is not a business division of Bitcoin. However, it is designed to be easy to use and anonymous. Bitcoin is the original template for NavCoin. In addition, this crypto implements sub-chains known as NavTech, which enables transaction anonymization and mixing.
Image source: coincentral.com
NavCoin has a proof-of-stake platform for staking coins in a consensus mechanism. Proof of stake works when users use a portion of their NAV native token holdings. This allows them tocreate a new block. After the network confirms the new block you have created, you will receive a reward.
With NavCoin, you will see block confirmations every 30 seconds, enabling regular dividends or an annual return. In addition, you can cash or buy more stock when the daily dividends are paid. The transaction fees are also affordable. Every standard transaction costs 0.0001 NAV in digital currency.
How to Earn Crypto Dividends
Before dividends are paid, you need to know how to earn them. Any cryptocurrency dividend you receive has to be earned. It is important to note that with these methods, you can gain a lot of money, but you can also lose your entire wallet since crypto is a high-risk asset.. Here are ways you can earn dividends.
a) Crypto Airdrops
Crypto users are most likely to encounter crypto airdrops. The basic idea is to send the newly minted native coin to multiple wallets of multiple users. This is done with the hopes that users will market other projects and initiatives, not necessarily to spend money but raise awareness.
Frequent crypto users, even those who get daily rewards, will likely provide users an airdrop of free tokens in their wallets at some point. You can withhold the tokens and cash them out later or buy more stocks.
b) Yield Farming
Yield farming acts like a savings account. Crypto users stake their currency for a specific time to be used as collateral or to provide liquidity to mining pools in an Ethereum network or even an upcoming exchange as long as it is your choice of crypto. Investors of crypto who prioritize aggressive returns will greatly benefit from yield farming because of the high-interest rates (up to 100%).
You can also join yield farms with interest rates from 2%-200%. The high-interest rates are backed by lending interest or joining a proof-of-stake liquidity pool, even with upcoming cryptos. Transaction fees also directly increase the number of dividends.
c) Lending and Borrowing
With this method, two basic platforms are always available:
- Centralized lending
- Decentralized lending
A crypto user can deposit cryptocurrency, which is lent out to borrowers. This is done because of the daily returns you accumulate. The payment is made in cryptocurrency and is compounded daily, weekly, monthly, and annually. As a result, cryptocurrency offers high-interest rates for deposits.
As mentioned in the above sections, Crypto staking refers to locking up cryptocurrency in a special wallet to obtain crypto dividends. Cryptocurrencies in holding must be verified by the crypto firms you bought them from. After passing verification using blockchain technology, you can earn dividends or other cryptocurrencies.
After the crypto transactions are verified, the resulting data is stored in the blockchain. You will collect your reward every day, week, month, or year depending on what you want. You will earn dividends from cryptocurrency holdings or perform a simple task.
The Bottom Line
Conducting your research before getting into crypto dividends is important for a bright future. The first half of the journey should be doing your own research before buying a company’s stock. The other half should be collecting and enjoying your dividends.
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