Crypto is a huge industry that gave birth to a lot of technological and financial innovations. It also made a lot of people rich with countless opportunities it created.
There are many ways to earn from crypto, including day trading, swing trading, long-term holding, staking, etc. Some strategies are better for active traders and others for passive investors.
Investing in good crypto projects can certainly earn you great returns over time. But did you know that, just like publicly traded companies, some crypto projects pay out dividends as well?
In this article, we will cover some of the best cryptocurrencies that do just that.
Top 6 Cryptos That Pay Dividends
There are a decent number of crypto projects that pay dividends. But it can be hard to find them, as this still isn’t a very popular way of earning income from cryptocurrencies.
That’s why we decide to make it easy. So read our list of the six crypto tokens that can earn you great returns in the form of dividends.
1. KuCoin (KCS)
KuCoin is a popular crypto exchange based in Hong Kong. It was launched back in 2017 and is known for its user-friendly interface and support for a wide range of cryptocurrencies.
The KuCoin token (KCS) brings some unique features to its users, including the ability to earn dividends called a KCS Bonus. As long as you hold at least 6 KCS tokens, you can earn dividends from KuCoin.
KuCoin dividends are generated from 50% of its trading fees, ensuring regular profits for its holders. The higher the number of KCS tokens you own, the higher your dividend returns will be. Dividend earnings are paid out in KCS tokens on a daily basis.
2. NEO (NEO)
NEO, also known as AntShares, is a China-based blockchain platform that supports smart contracts. You can use it to trade digital assets, just like you would on any other blockchain platform.
Developers, on the other hand, can use NEO to build decentralized apps (dApps). This feature that NEO shares with Ethereum is why people also call it Chinese Ethereum.
One of the great features of this blockchain is that it pays dividends in GAS tokens. And all you have to do to qualify is hold NEO in your crypto wallet.
You can think of GAS as the fuel that powers the blockchain network. For example, every time a transaction is processed on NEO, GAS tokens are generated. These tokens are then distributed to all NEO holders.
The amount of GAS you receive is proportionate to the amount of NEO you own and how long you hold it.
3. Bibox (BIX)
Bibox is a crypto exchange that was launched in China in 2017. It offers various trading options, as well as digital asset storage services.
The Bibox token (BIX) brings many benefits to its holders, including discounted platform trading fees and access to premium features. But what makes it stand out the most is that it also pays dividends. Bibox introduced its dividend bonus back in early 2018.
If you want to earn dividends on the Bibox platform, you need to lock up at least 500 BIX tokens. Previously, you also had to make at least one trade per week in order to qualify, but that’s no longer the case. Bibox dividends are paid out once a week, on Friday.
At the time of writing, Bibox holds the 135th place on CoinMarketCap’s exchange list and a very low score of just 3.4 out of 10. So make sure to stay up to date with any news as you decide if you should invest in its token.
4. AscendEX (ASD)
AscendEX, also known as BitMax, is a crypto exchange based in Singapore.
Investors who hold ASD can earn dividends via automated airdrops. As always, the more ASD tokens that you hold, the better your airdrops will be.
Additionally, ASD holders will be able to participate in an IEO (Initial Exchange Offering) and get platform voting rights.
AscendEX distributes 80% of its network profits as a bonus to ASD holders. By holding ASD in this way, you chose between a 6.93% return or a discount of up to 80% on platform trading fees.
Another great feature this platform offers is using the ASD your hold as collateral for margin and futures trading.
5. Komodo (KMD)
Komodo is a privacy-focused crypto project that was first launched in 2016. It’s famous for using a Zero-knowledge Proof consensus mechanism.
Furthermore, Komodo is a multi-chain platform, meaning that it can facilitate user-created blockchains and host their token sales. This includes exchanges and smart contracts as well.
If you want to earn dividends from Komodo, you need to hold at least 10 KMD tokens in your wallet. Komodo’s dividends are called Active User Rewards and can be claimed each month.
6. VeChain (VET)
VeChain is an enterprise-grade smart contract blockchain intended for data management, supply chain management, and the Internet of Things (IoT). It’s optimized for businesses, allowing them to scale globally.
VeChain’s native tokens are VET and VTHO. While VET acts as a store of value and a transfer medium, VTHO is used to pay for network gas fees.
You can earn dividends in VTHO by holding the VET token in your wallet. The amount of dividends you earn depends on how many VET tokens you hold and for how long.
Investing in crypto can be a lucrative venture, as there are various ways to earn from it.
While dividends are still not the most popular way of earning passive income, there are several crypto projects that pay dividends, just like publicly traded companies. Some of these are KuCoin, NEO, Bibox, AscendEX, Komodo, and VeChain.
While not all dividends are generated and paid out equally, the amount you can earn usually depends on how many you hold and for how long.
On a final note, make sure to stay updated on any news about a cryptocurrency project before investing in them. This is especially important during times of regulatory scrutiny.