Some people want to make money by trading crypto, while others would rather take advantage of cryptocurrency in a more relaxed manner.
If you’re among the second group, you may consider reinvesting your crypto funds to receive dividends.
What Are Cryptocurrency Dividends Really?
What are cryptocurrency dividends, and more significantly, how can one profit from them?
You already know what a regular dividend is if you’ve ever heard of it: a firm pays out a portion of its profits to investors.
Dividends are profits parts given to shareholders. They may be paid in the form of shares or hard cash.
The same can be said of cryptocurrencies. If you invest in and stake certain tokens, you will get a cut of the network’s profits.
Transaction costs are usually shared among the stakers.
The 11 Cryptocurrencies Pay Dividends
However, not all cryptocurrencies pay dividends. In addition, some of them offer greater payments than others. As a result, it’s vital to select the best cryptocurrency for yourself.
Here is a list of the top cryptos that pay out in crypto dividends.
1. NEO (Now upgraded to N3)
NEO holders are paid on a daily basis. For each token, you can anticipate to receive 0.0003 GAS every day.
Double-checking that your NEO wallet allows GAS payments is strongly suggested. Some wallets keep the payouts to themselves without your knowledge.
2. Kucoin (KCS)
KCS is a cryptocurrency that allows holders to receive a monthly dividend.
KCS tokens can be used for discounts at certain businesses, and people who purchase the coins and store them on the exchange may receive dividends.
The payout of 50% of transaction costs is shared by token holders on the platform. Higher dividends are paid as more money flows through the platform. To obtain dividends, you must own at least six KCS tokens and keep them on the platform.
BitMax is a cryptocurrency exchange that pays rewards to the owners of its BTMX tokens.
This platform is more generous than the one before it. It distributes about 80% of transaction expenses as dividends.
The yearly return on investment is usually 35-50%, which compares favorably with keeping your money in a savings account.
Another platform that pays dividends for staking the currency is Vechain. The payouts are made in VTHOR. A holder may expect 0.00042 VTHOR daily for staking one VET.
PIVX is a network as well as a cryptocurrency. The popularity of PIVX stems from its privacy technology.
PIVX is also one of the most rapidly expanding cryptocurrencies because to its staking program. Staking generates an income for PIVX users by about 4%.
It’s the only disadvantage of PIVXi staking that a node must be online at all times. Cloudstaking, on the other hand, is simple to overcome.
Komodo is a cryptocurrency that uses a proof-of-work algorithm and pays dividends in staked coins. To receive the benefits, you must stake at least 10 KMD.
The good news is that, to receive dividends here, you don’t have to be online 24 hours a day, 7 days a week.
This makes this token stand out from the rest of the staking tokens because it offers 5% yearly dividend payments to token stakers who have kept their stakes for at least five years.
Nebilo is a blockchain-based platform that enables the creation of DApps and smart contracts. It may also be used to launch ICOs.
Additionally, skaters who keep tokens in a particular wallet are rewarded with Nebilo points.
The yearly return is around 10%. There isn’t a lower limit for staked coins in the network. Staking Nebilo tokens may be quite lucrative in the long run, given that the NEBL (a Nebilo token) price is low.
Another blockchain-based network is Ontology. It provides a peer-to-peer trust infrastructure to its users.
Users may also count on staking rewards along with it. Staking ONT is very promising considering that the yearly income is around 4%, and the coin’s value has been increasing lately.
The Decred cryptocurrency was created to form a “credit system.” It’s a multi-platform cryptocurrency.
A hybrid consensus mechanism that mixes proof-of-work and proof-of-stake methods is used. The native token of the Decred network is DCR. Stakers may earn up to 30% per year in dividends through DCR.
Reddcoin is a social media-based cryptocurrency. It allows Reddit and Twitter to reward users for their efforts on the sites. Reddcoin stakers may earn up to 5% per year by using Reddit’s PoS system.
11. Coss Token (COSS)
Coss.io is a fully autonomous cryptocurrency exchange that does not rely on anyone else.
Coss distributes half of its trading commissions as dividends to shareholders, just like KuCoin. The main difference is that the payments are dependent on the sort of crypto currency and how it was paid; for example, if the fee was paid in Bitcoin or Ethereum, the dividend will be given in the same token.
Dividends are paid weekly on Mondays and are based on your stake amount. COSS tokens may be bought at HitBTC or COSS exchange platforms. To compute your dividend, use the Coss Dividend calculator .
How to Pay Taxes from Your Crypto Dividends?
There is still room for improvement in cryptocurrency regulation.
The rules and criteria, as well as those surrounding taxation, might differ significantly from country to country.
As a result, it is the user’s duty to determine whether they are required to pay taxes on their crypto dividends and, if so, how they should be handled.
Dividends paid in cryptocurrency are one of the most appealing sources of passive income from your cryptocurrency investments.
The important thing is to pick the right coin and study all conditions under which dividends are given carefully.