Top 10 Cryptocurrencies that Pay Dividends

⚡ Learn how to earn crypto dividends and get rich(er). ? Discover the top 10 cryptocurrencies that pay dividends.

While some people trade crypto to get profit, others would like to have a different, calmer way to benefit from cryptocurrency. If you belong to the latter ones, you can try to get dividends from the crypto funds you own.

What Are Cryptocurrency Dividends?

What are crypto dividends and, more importantly, how can one earn from them? If you have heard about traditional dividends, you know what it means: a business distributes a part of its profit to shareholders. These profit parts are called dividends. They can be paid either in shares or in cash.

The same applies to crypto. If you invest in some tokens and stake them, you will get a share from the profit of the network.

Some users mistake staking for dividends. While these things seem to be similar, they are not the same:

Staking awards are paid to users for maintaining the network while dividends are paid out from the project’s profit.
Staking rewards consist of fees while in the case of dividend payout, no fees are involved.
If a user stakes coins, they do not get any assurance that they will receive a specific amount in rewards during a specific time frame. In the case with dividends, the payouts are more stable.
Finally, staking is crucial to maintain the network, while dividends are not.

Ways to Get Passive Income from Crypto

There are two main ways to get passive income from crypto:

To buy and hold the tokens of an exchange that pays dividends in crypto;
To stake and get passive income from crypto.

So, we start with a list of exchanges that pay dividends to the holders of their tokens.

Kucoin (KCS)

Kucoin is a Hong Kong based exchange that has introduced the practice of paying crypto dividends to those who buy and hold the exchange tokens.

The exchange shares 50% of transaction fees with the token holders. The higher the exchange turnover, the higher the crypto dividends are.

To start getting the crypto passive income from your assets, you need to hold at least six KCS tokens and keep them on the platform.

FTX

FTX is a crypto derivatives exchange that allows earning passive income from cryptos. The higher your staking tier is, the more you are paid. The first tier is applicable for users who do not stake any coins. Such users are offered a referral rate of 25%, others staking benefits are not offered. The top tier is applicable for users who stake 1,000,000 FTT. Such users get a referral rate of 40%, along with such benefits as a 0.0030% maker fee rebate, 50 bonus votes, 14% of relative airdrop increase, 1000 free daily FTT withdrawals, and 6 IEO tickets.

BitMax

BitMax is one more exchange that pays dividends to the holders of its BTMX tokens. This exchange is more generous than the previous one. It pays around 80% of transaction fees in crypto dividends. The annual return on investment is around 35-50% in passive income from cryptocurrency which is much higher than if you keep your funds in a savings account.

Which Cryptocurrencies Pay Dividends

Not all cryptocurrencies pay dividends though. Moreover, some of them pay more than others. So, it is important to pick the right crypto to get maximum benefit. Here, we have prepared for you the list of top cryptocurrencies that pay crypto dividends, along with staking rewards.

Decred

Decred is used for Decentralized Credit. It is a multi-platform cryptocurrency that pays dividends. It uses a hybrid consensus mechanism that consists of proof-of-work and proof-of-stake protocols. DCR is the native token of the Decred network. DCR stakers can receive up to 30% per annum in dividends.

Ontology

Ontology is another blockchain-based network and crypto with dividends. It offers a peer-to-peer trust infrastructure to users. Along with it, users can count on staking benefits. Considering that the annual income is around 4%. Staking ONT is pretty promising.

Staking Tokens

Reddcoin

Reddcoin is a digital currency of social media. It allows Reddit and Twitter to tip users for their contribution to the networks. Thanks to Reddit’s PoS protocol, Reddcoin stakers can earn up to 5% per annum on their holdings.

Neblio

Neblio is a blockchain-based platform that supports Dapps and smart contract development. It can also be used to launch ICOs. This cryptocurrency that pays dividends is one of more than 340 coins that can be bought or sold here, on LetsExchange.io.

Neblio also pays its skaters for holding tokens in a special wallet.

The annual return is around 10%. The network doesn’t have a lower limit for the staked coins. Considering that the NEBL (a Neblio token) price is low, staking NEBL tokens might be incredibly profitable in the long term.

NEO

NEO allows its holders to get daily payouts in GAS. For one token, you can expect to get 0.0003 GAS every day. We recommend making sure that the wallet you are going to use to store NEO allows GAS payouts. Some wallets secretly keep the payouts to themselves. But if you find the right wallet, you can get a stable crypto passive income.

VeChain

VeChain is one more platform that offers dividends for staking the token. The dividends are paid in VTHOR. For staking one VET, a holder can count on 0.00042 VTHOR daily.

PIVX

PIVX is a network and a token. The network is popular because of its privacy protocol. It also makes PIVX one of the most rapidly developing tokens. PIVX staking brings users around 4.8% of dividend coins income on a yearly basis.

The only drawback of PIVX staking is that a node shall be online constantly. However, it is easy to solve with cloud staking.

Komodo

Komodo utilizes a proof-of-work protocol and offers crypto dividends on staked coins. To get the benefits, you need to stake at least 10 KMD. The good thing is that to get dividends here, you aren’t required to stay online 24/7. This is one of the benefits that make this token different from the majority of staking tokens. The token stakers can count on 5% annually from the sum they have staked.

How to Pay Taxes from Your Crypto Dividends?

Cryptocurrency regulation is still not perfect. The laws and requirements, including those for taxation, might vary greatly from one country to another. That’s why it is a user’s responsibility to find out whether they are obliged to pay taxes on their crypto dividends or not, and if yes, how it shall be organized.

Are Trading Profits Better Than Dividends?

Trading is connected with high risks. You can get high profits if you forecast the price fluctuations correctly. While profits from trading can be significantly higher than the income from dividends, the risks to lose all your invested funds are also significantly higher.

Conclusion

Cryptocurrency dividends are one of the most attractive ways to get passive income from your cryptocurrency holdings. The main thing is to choose the right coin and check properly all conditions under which the dividends are paid.