In this article we will cover the top 5 best cryptos that pay dividends in 2023. Dividends are a form of passive income. That means that essentially you store or lock down your money in some way and earn money for doing so. This has typically been the terrain of stock investing, as many stocks offer dividend yields. You gain income based on how many shares you own based on a specific percentage annually, which is usually evenly distributed each quarter.
Now, there’s a new player on the field as cryptocurrency has developed methods to give you opportunities to earn income while your digital currency sits securely in stasis. Sounds pretty awesome right?
Intro To Dividend Investing With Crypto
First off, crypto dividends are not the same as stock dividends. The latter is typically paid with excess money the company has based on its profits; crypto dividends are more like a reward system, providing you with passive income for allowing your crypto to be stored or used for a specific purpose.
Dividends are generated through a process called “staking” which means that in order to receive a specific (but often variable) reward, you will lock down a specific amount of your crypto for a company to use to validate transactions on the decentralized crypto government blockchain.
While you “Hold” that money in a special wallet, your crypto is put to work, and at the end of the agreed-upon time period, your crypto is returned to you intact plus the promised rewards.
The Top 5 Cryptos That Pay Dividends
Now that you have a better understanding of how crypto dividends work, here are our top 5 best cryptos that pay dividends.
Coin 1 – Ethereum
Ethereum is already second only to Bitcoin in the crypto world and many investors believe that within five years, it will be second to none. Thanks to its recent launch of Ethereum 2.0, it is already beginning to make headway into the future.
Coin 2 – Chainlink
As it is built on an Ethereum platform, Chainlink’s success seems to correlate directly with Ethereum. As more agencies begin using blockchain technology, Chainlink’s services are growing in demand, and its stocks are expected to rise accordingly.
Coin 3 – Uniswap
Uniswap is an exchange that has recently been upgraded with Uniswap v3, and one of its major features is the ability to receive earn interest with UNI tokens. Some investors believe that this exchange will pioneer new a futures industry for cryptocurrencies.
Coin 4 – Basic Attention Token
Basic Attention Token (BAT) is unique crypto where users are rewarded with a token for visiting specific websites. While currently residing around the 100 mark in popularity, new exchanges have been adding it and giving it attention, so this crypto is expected to climb those rankings.
Coin 5 – BTC
Is there any surprise that BitCoin is on this list? As the current and constant leader of the cryptocurrency phenomenon, it shows no signs of slowing, and with the option of dividends, there are many opportunities to earn passive income. Despite the volatility of cryptocurrency, BitCoin continues to rise exponentially in fairly short time frames.
Benefits to Crypto-Dividend Investing
- Earn passive income while doing absolutely nothing
- A safer method of earning crypto than trading on the market
- Opportunity for significant gains when locking in a good dividend yield
- Your original stake is returned to you at the end of the allotted time period
- Your crypto helps make all crypto transactions more secure
Final Thoughts
We hope you enjoyed this list of the top 5 best cryptos that pay dividends in 2023. If you like the idea of passive income where your crypto can sit secure in a wallet and make you money rather than taking the risk of trading on the exchange, this is probably a good option for you.
As with any investment, you should research for yourself to determine which crypto and method you feel will benefit you the most.Keep in mind, you can always begin with a small stake and experiment until you are comfortable with the idea, and then if it works for you, make greater investments. With greater investments come greater gains!
