Cryptocurrency is a digital asset that works on the blockchain network. The concept of cryptocurrency came when the first cryptocurrency, Bitcoin, was launched. Cryptocurrencies have gained popularity in countries like the USA, China and many others across the globe. Some countries have adopted cryptocurrencies due to its decentralized nature, while others have chosen them for other reasons. Whatever reasons that might be, these digital assets have the potential to pay good dividends. For example, Bitcoin has been among one of the best choices for investment and adoption. Now, it has become the biggest cryptocurrency. Apart from Bitcoin, there are many cryptocurrencies that could pay dividends in 2020. We will see them before knowing how to earn dividends from cryptocurrencies.
Before going further, it is crucial to know how to earn dividends from cryptocurrencies. An individual can easily make dividends from cryptocurrencies. Two most popular methods by which a person can make dividend from cryptocurrencies are staking and HODLing. In the holding method, a user can purchase and hold cryptocurrencies in any crypto wallet while in the staking method, a user holds Proof of Stake coins in a supported crypto exchange or a special wallet.
HODLing cryptocurrencies is an easy way to make dividends. In the HODLing method of earning dividends, a user holds his or her cryptocurrencies into the crypto wallet and waits for the time when the coins would provide better returns. A user could hold Bitcoin to earn dividends. Other cryptocurrencies to earn dividends by HODLing are Ethereum, Litecoin etc. All these coins are very good in order to earn dividends.
Staking is a method in which a user holds coins on stake to get the dividends. In order to receive dividends or rewards, a user contributes to the blockchain network by staking. As such, this method is mostly used for blockchains that make use of Proof of Stake consensus mechanism. Below, I have given a list of top cryptocurrencies that could pay dividends in 2020. A holder gets dividends from these cryptocurrencies by staking their tokens.
It is the best dividend paying cryptocurrency. This cryptocurrency was started in 2016. It is an autonomous cryptocurrency which utilizes a hybrid consensus system in order to provide security within the network. The hybrid consensus of Decred can be compared to the Proof of Stake and Proof of Work consensus model of other cryptocurrencies. Its holders can earn a dividend up to 30 per cent per annum for staking their tokens. You can buy cryptocurrency on different crypto exchange.
Also known as NEBL, it is a distributed computing system primarily for enterprise blockchain systems. Its metadata properties allow one to tokenize asset without any technical expertise. It was started in 2017. The holders of Neblio can earn a dividend of up to 10 per cent per annum.
NEO was also called as AntShares. It is considered as one of the best blockchain projects that the market has seen so far. NEO is also labelled as the 'Chinese Ethereum' due to its popularity. The token holders of NEO can earn a dividend at the rate up to 5.5 per cent through token staking. Payments are recieved in the token of NEO blockchain, which is called NEOGas.
PIVX stands for Private Instant Verification Transactions. This digital currency is a privacy token which has come from the fork of Dash cryptocurrency. PIVX makes use of Proof of Stake mechanism to guarantee privacy in transactions. Its holders can earn a dividend up to 5 per cent per annum for staking their tokens.
Reddcoin is a cryptocurrency which has a primary objective to emerge as a tipping cryptocurrency for all the social media networks. Using Reddcoin, a user could tip anyone for any sort of contest that he or she wishes on any social media platform. Its holders can earn a dividend of up to 5 per cent per annum.
This digital currency started its journey as a privacy token in 2016. Komodo leverages Zero-Knowledge Proofs which allows users to make financial transactions in a private manner. The holders of Komodo can earn a dividend of up to 5 per cent per annum.
NAV Coin is a digital currency that makes use of two blockchain systems. This coin has been derived from the core language of Bitcoin and has been operating since 2014. One blockchain used by NAV Coin is the main blockchain, and the other one is its subchain. The holders of NAV Coin can earn a dividend up to 5 per cent per annum.
It is an ERC20 token which was started by KuCoin, a crypto exchange platform from Hong Kong. Its holders can get dividends through KuCoin tokens, and the rate of the dividend could vary every month according to the trading volumes.
In this guide, I have given a list of top cryptocurrencies that could pay dividends in 2020. The cryptocurrencies are provided according to their estimated annual dividend rate. From my experience, Decred is the best cryptocurrency to earn dividend as it has been providing dividends at the rate of 30 per cent per annum. Almost all these cryptocurrencies work on Proof of Stake consensus mechanism. I have also explained HODLing and staking, which are considered the two most common methods used to earn dividends from cryptocurrencies. Finally, I could say that the cryptocurrencies I have described in the list could have outstanding potential to provide dividends this year and in the near future.
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