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Every smart investor is looking for ways that they could generate a stable income by not actually doing much. By having their funds sit in an account or wallet and then see that value increase from day to day.
It is sometimes called passive income, and it can be a tremendous asset and way to increase your overall portfolio value and build out your investment for let’s say retirement or pay off your house mortgage.
Everyone wants to make money in their sleep. And here I will look into the fact what are some of the hottest crypto dividends options in 2020!
I myself am making an extra income everyday from various cryptocurrency dividend options. So I wanted to share my tips with you all!
What are crypto dividends?
What is a dividend?
A dividend is the distribution of a portion of the company’s earnings, decided and managed by the company’s board of directors, and paid to a class of its shareholders. Dividends may be paid out as cash or in the form of additional stock.
The Investopedia’s definition of dividends
So in the world of stocks that means you own shares. And often yearly the company pays out a part of their earnings to every stockholder.
So how does that translate to the world of cryptocurrencies? Because there is no direct translation of stocks to cryptocurrency dividends.
As the tokens and coins of the cryptocurrency world don’t exactly work like stocks. But there are similarities between the stock world and the crypto world:
- It is possible to earn an extra income from cryptocurrencies from Proof of Stake and Proof of Work cryptos much like dividends for stocks
- You can also engage in crypto lending and savings with some cryptocurrencies right now
- There’s a possibility for token holders to engage with the project and vote for future changes similar to a stockholder’s rights
How can you earn dividends from cryptos?
So to earn extra funds from cryptocurrencies you can either:
- Start mining cryptos, like Bitcoin and other Proof of Work coins
- Staking cryptos, hold your coins or tokens in a wallet and earn extra income from high-paying Proof of Stake cryptos
So with that in mind, I wanted to share with you my list of top picks for crypto dividends tokens and coins to buy and earn extra income from!
- NOTE: These coins and tokens are mix of different cryptocurrencies that can generate an extra income much like dividends for stocks
List of 6 top cryptos that pays out dividends
1 ) Tezos (XTZ)
One of my favourite picks and crypto that I delegate and earn income from myself is Tezos and the XTZ token.
Tezos is a smart new platform blockchain that aims to be self-evolving, fast and highly scalable.
This open-source platform like many others emerge during the ICO craze, and is one of the stronger ones that have shown to go from promise to real-world usage.
Companies and organisations over the world are currently building out new decentralised products and services on the Tezos blockchain.
And with this increased interest the potential of XTZ is increasing. You can earn dividend income by staking your tokens. Either yourself, by ‘baking’ them, or by delegating them to another node and earn income shared from that node holder.
You can stake/delegate your XTZ from Coinbase, your Ledger device, or many other popular cryptocurrency wallets.
Where to buy Tezos: Binance or Coinbase
2 ) Cosmos (ATOM)
This internet of blockchain cryptocurrency is another popular staking option coin. Cosmos like Tezos focuses much on interopterability, flexibility and scalability.
And with lots of technological developments and features in place Cosmos is showing to have some genuine potential. Hence the strong interest in its cryptocurrency ATOM.
ATOM like Tezos is a form of delegated PoS crypto. You can delegate your ATOMs and start earning extra income like a form of a dividend.
Where to buy ATOM: Binance and OKEx
3 ) ICON (ICX)
ICON is another ambitious blockchain platform that aims to bring blockchains together so they can speak and work together. Hyperconnect the world through interoperability and bridging these blockchains.
ICON have big plans of providing this network globally and in any sector, finance, healthcare, insurance, commercial, etc.
You can easily start earning dividends from ICON by staking your ICX in the official ICON wallet. It is easy to start and will help you make some extra income by simply holding your ICXs in the wallet.
Where to buy ICON: Binance and Kraken
4 ) Algorand (ALGO)
The first ‘pure Proof of Stake blockchain‘, that’s what Algorand calls themselves. And it is another interesting option that I think deserves your attention.
Similar to Tezos, Algorand aims to be free of hard forks and provide blockchain solutions to companies and organisations the world over with high scalability, smart contracts and true decentralisation.
The potential use cases of Algorand spread across sectors and forms. From DEXs to securities and tokens, to new dApps.
You can stake your ALGO tokens from an Algorand wallet or directly from popular exchanges like Binance.
Where to buy ALGO: Binance and Huobi
5 ) Blocknet (BLOCK)
Blocknet is a PoS blockchain with its native token BLOCK at the heart of its functions.
The Blocknet protocol aims to be fast and highly scalable. And like Cosmos it aims to bring blockchains together in a more collaborative environment.
With its platform, DEX and high-functioning node system Blocknet is getting lots of attention.
And it can prove to be a lucrative investment for holders that wants to earn extra income by staking their BLOCK.
Where to buy BLOCK: Bittrex
6 ) Aion (AION)
AION or the Open Application Network is another form of platform blockchain. And another potential crypto that you could invest in to start earning dividends from.
With the Open Apps technology Aion aims to make it possible to connect existing apps with new developed apps on the Open App protocol.
Similar to the other blockchains on this list, working together is the keyword. For services or products built-in or outside the blockchain space.
Where to buy AION: Binance and KuCoin
Bonus crypto dividends mentions
Some other interesting ways of earning extra income from cryptocurrencies is via crypto lending and savings.
Conclusion – best crypto dividends options
So here we have it, a bunch of interesting cryptocurrencies that you could invest in and start earning dividends from. I myself use several of these methods. So I can reassure you they are trialed and tested.
And not only be me, but by other crypto holders around the world. Who take advantage of these income generating opportunities to increase their overall portfolio.
What is your favourite crypto dividend option? Are you using any on this list? Or do you own another crypto that pays out a form of dividend?
Share this article with others so more can earn income from crypto!
Find other guides
- Best way to invest in crypto
- Bitcoin investing guide
- Buy Bitcoin with a credit/debit card
- Award-winning trading platform PrimeXBT
- Popular exchange Kraken’s top alternatives
Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier
Coinsmart .Best Bitcoin Exchange in Europe