Top 10 Dividend-Paying Cryptocurrencies: All about Earning Passive Income from Staking and Yield Farming in 2022
The general interest in passive income is the trend of our time. If earlier investments in cryptocurrencies with significant dividends seemed to be a complicated process, accessible only to owners of large capitals, then in recent years the situation has changed radically. Now passive income from cryptocurrency investments has become a reality, and there are platforms that have automated the investment process so much that they reduced it to a few clicks.
Today, we can really say that, having certain knowledge about the crypto market, you can quickly establish a steady stream of income that will come to you in a passive mode. We are talking about cryptocurrency investing, where once you invest in cryptocurrency, you will receive dividends. What projects can be considered the most interesting in terms of paying dividends in 2022?
What Are Cryptocurrency Dividends?
As in traditional business, in cryptocurrencies there is also such a thing as dividends. In business, this concept means that the company is ready to share part of its profits with shareholders. And although crypto companies constantly deny that the holders of their coins are called shareholders, in fact, exactly the same mechanism takes place here: people who once believed in this or that coin, bought it, thus filling its economy. With the money of these people, further development and promotion of the product takes place, and it is completely fair if in the future the company shares its profits with those to whom it owes them.
What Is the Difference between Staking Cryptocurrencies and Crypto Dividends?The portions of profits that the company pays out to investors are called dividends. Do not confuse this concept with staking, which is also an interesting direction of passive income from cryptocurrencies. What is the difference?
Dividends are paid to cryptocurrency holders from the project`s profits, while in staking, rewards are paid for stakers maintaining the network.
Dividends are a more stable income than staking, because in staking, there is no guarantee that after a specified period, you will receive any certain amount of money. It all depends on the price of the cryptocurrency you are staking. If its rate dipped, the profit from staking may not be significant.
Staking is critical to maintaining the network, while dividends do not affect its performance in any way.
Cryptocurrency Exchanges That Pay Dividends in 2022However, staking is a great way to earn passive income from cryptocurrencies. Strictly speaking, there are only two of these methods:
Buy and hold tokens of an exchange, providing it with something that no exchange can exist without — liquidity. For this, the exchange should be ready to pay you dividends;
Participate in staking programs and receive passive income from cryptocurrency. That's it, yes, so simple.
So, let's see which exchanges pay dividends to holders of their tokens.
Kucoin (KCS): Become a Shareholder and Receive DividendsThe native token of the Kucoin crypto platform is named KuCoin Shares (KCS), which is an ERC-20 token. Users who hold KCS in their KuCoin exchange wallet can earn daily staking rewards that amount to 5.53% of annual income. If you hold KCS, the exchange shares 50% of its earnings from transaction fees with you. As with real dividends, the more the exchange earns, the more you get. To start earning crypto-passive income from your assets, you need to own at least six KCS tokens and store them on the platform. Kucoin's latest funding round, held in May 2022, indicates a $10 billion valuation for the platform.
AscendEX (ASD): 5x Profit from Staking with a Special CardThe AscendEX exchange was previously known as BitMax. This is an exchange with an excellent reputation, primarily famous for the super successful initial offers that were held on it as the IEOs. The AscendEx ecosystem is fueled by the native ASD token (formerly known as BMX). ASD holders can earn daily rewards and enjoy lower trading fees. About 80% of the profit generated by the exchange is distributed as an ASD placement bonus.
Users can get even more profit by purchasing the so-called ASD Investment Multiple Card, which increases the potential profitability five times. For example, if you have 20,000 ASD in your account and you buy a card, your individual share of the platform distribution pool will be multiplied by 5. In other words, 20,000 ASD with this multiple card has the same individual share as an investment of 100,000 ASD.
FTX (FTT): the Higher the Stakes, the Higher the EarningsFTX is a crypto derivatives exchange that also allows you to earn passive income from cryptocurrencies. Here, the income depends on the height of the bets you make: the higher they are, the more you get paid. At the first level, there are users who do not stake any coins. Such users are offered a referral rate of 25%. The upper level is applicable for users who wager 1,000,000 FTT (the native FTX platform token). Such users receive a 40% referral rate as well as benefits such as a 0.0030% creator fee discount, 50 bonus votes, 14% relative airdrop increase, 1000 free daily FTT withdrawals and 6 IEO tickets.
Bibox (BIX): Dividends in ETH and 8% APR IncomeBibox is a decentralized crypto exchange from China with a native BIX token, whose owners are eligible to receive dividend rewards if they fix at least 500 BIX and trade at least once a week. The reward is paid in ETH and you can expect the APR to be over 8%. It is worth noting that the price of BIX has consistently declined from over $3 in 2018 to its current level of close to two cents.
DeFi Yield Farming as a Form of Receiving DividendsThe ideal modern farmer is not one who grows large sweet tomatoes, but a person versed in decentralized financial instruments. Yield Farming / DeFi Yield Farming is a semi-passive investment, where, with the help of various tools, investors make their capitals get bigger, like they kind of "grow" it. Yield farming tools are various decentralized finance protocols that include staking, lending, decentralized liquidity pools, and derivatives protocols.
Komodo (KMD): Just Hold It in Your Wallet and Get ProfitKomodo is an anonymous cryptocurrency with an improved consensus mechanism, which is also part of the SuperNET decentralized ecosystem. Komodo's native token is called KMD, and the great thing about it is that the platform pays dividends simply for holding their currency in your own wallet. It's not even pure staking because you don't have to keep your wallet open all the time.
NEO: Stable Profits from Chinese EthereumThe NEO blockchain with the native token of the same name was previously called AntShares. It is a giant platform on which you can run smart contracts, just like on Ethereum. That's why NEO is called “Chinese Ethereum”. NEO token holders can freeze it in their wallet for a certain period in order to receive dividends via GAS tokens. GAS is the second token of the NEO network, which is used to operate and store tokens and smart contracts, as well as to receive dividend rewards. NEO has an annual percentage return of over 2%. Generally, for every NEO token you own, you will receive 0.0003 GAS per day.
PIVX: About Five Percent APR for Maintaining a MasternodePIVX (Private Instant Verified Transactions) is a private cryptocurrency that is an offshoot of the Dash cryptocurrency, designed specifically to allow users to conduct anonymous transactions using this “sub-currency”. The Proof of Stake Zerocoin protocol that PIVX runs on means that users will stake a portion of their coins in order to optimally keep the network running. In order to receive PIVX dividends, you need to run a masternode with 10,000 coins locked up as collateral. As a reward for this, you'lll receive newly minted PIVX coins. The annual income from this type of crypto dividend is about 4.8% per annum.
VeChain (VET)VeChain operates as a smart contract platform similar to NEO and Ethereum. It boasts a highly scalable Tier 1 blockchain infrastructure that is environmentally friendly. The biggest VeChain advantage is that it pays out dividends via liquid VTHO tokens. Users must store VET tokens in their wallets in order to receive VTHO tokens. The payout is 0.00042 VTHO tokens per day for a stake of 1 VET. Still, the overall annual dividends from this platform are not so big being about 1.4% APR.
NFT Projects That Pay Dividends
The format of games in which players can not only have a good time, but also earn money is quite popular today. Just as DeFi protocols farm new coins through staking, in game universes, you can farm game resources that can later not only be used for the in-game development, but also sold on the internal marketplace, receiving native platform tokens for them. They, in turn, can be exchanged on the trading platform for crypto or fiat. Thus, the NFT game universes also offer their own kind of dividends for owning their NFTs.
Copium Protocol: The Passive Investor's Sweet DreamsCopium Protocol is targeting the DeFi farming sector by releasing the Investor Pass, an NFT for passive crypto mining. The Investor Pass collection will include 10,000 NFTs, which will be minted on the Ethereum network on October 10, 2022. Copium Protocol is based on a real enterprise: a Copium Mining farm, located in Otago, New Zealand. This farm is notable for using green energy only in its work.
Copium Protocol includes two main assets: Investor Pass NFT, and Copium Coin. Getting into the project would differ from others of NFT field: by participating in an auction on the project website. The initial price at the auction will start from 3.5 ETH, but the first 2000 early birds there will get a reduced price of 3 ETH. All holders of the Copium Protocol NFTs will become participants in the 10,000 Copium Coin airdrop. Investors holding their NFTs on the platform will earn 10 Copium Coin daily, as well as take part in the monthly giveaways of this coin.
Battle Infinity: Fantasy Sports, Betting and P2E Games Marketplace
Battle Infinity is one of the best NFT projects that pays dividends: the platform is equipped with a highly profitable Battle Stake staking system that can provide investors with huge monthly dividends. Battle Infinity is another Play-to-Earn game on our list that integrates NFT into its virtual universe, where the economy is based on its native token IBAT. The Battle Infinity ecosystem includes a fantasy sports game, a betting platform, a marketplace with P2E multiplayer games, and even a DEX.All Battle Infinity in-game items are NFTs. Users can buy virtual land, customize their avatars with various skills and outfits. Each player-character in Battle Infinity is an NFT that users can trade on a special platform. Battle Infinity smart contracts have been audited by blockchain security company SolidProof.io.
The Bottom Line
In the blockchain world, new opportunities are emerging constantly, including for generating passive earnings. The only thing we want to warn you against is any impulsive buying in this market. Always research a project before investing: you should be wary of such things as an anonymous team that does not communicate with their community on social networks, as well as promising of enormous profits. No one is safe from scam, and you need to remember it is very common in the blockchain world. Therefore, think, read, and study the project before investing. And, finally, we wish you good luck in getting passive income from cryptos!
Author name: Albert Galeev
Quickex.io partner writes