What are crypto Dividends?

In the crypto world there are several ways to make a passive income that can be considered crypto dividends, the 3 main ways are:

• Masternodes, basically masternodes or “MN” are nodes that support the cryptocurrencies transactions and keeps the network stable and running, for doing so it receives a big chunk of the block reward, block reward is the creation of new crypto coins/tokens to incentivize people to sustain the network either by mining, MNs or staking. MNs are more difficult than the next two because you need to build the node and keep it running on top of that they usually require a large sum of coins to be locked as collateral, but

• Staking Cold/hot, Staking is like masternodes in that it helps confirm transactions and secures the network but you can usually do it with any amount of coins. There are two kinds of staking hot is where you keep the wallet running 24/7 and cold is when it generates coins even when offline, an example of cold staking is NEO with its automatic staking to generate GAS another crypto coin or ALQO does cold staking in Liberio, their cold staking wallet.

• Exchange profit share, this is when a crypto exchange shares a part of its profits with holders of their token, for example, Kucoin does that when you hold KCS in their exchange.

List of good passive income cryptocurrencies:

1 - NEO

Neo is a popular cryptocurrency in China, it is a lot of the time said to be the Chinese ethereum.
The NEO blockchain consists of 2 crypto’ s; NEO, GAS. By holding NEO in a neo wallet you slowly get rewarded GAS by a cold staking method the annual return is about 5.5%, which is low, but if NEO & GAS value goes up from the point you buy in then your % return on your initial investment could be significantly more.
The reason why this is my top suggestion is because NEO is a well-known crypto with a significant market cap, and if it follows Ethereums footsteps it will be huge, most signs point towards that it will.

Ticker symbol: NEO , GAS
Method of passive income: Cold staking
Website: https://neo.org/
Annual income: about 5.5%

2 – ALQO

ALQO is a much unknown crypto currency relative to NEO above, but it has huge potential, also the reason it’s on this list is because the team is very transparent and trustworthy, they communicate very well with their community and are always available for questions, these things create a lot of trust.
With ALQO you can make passive income in 3 ways, masternodes, staking both hot and cold and lastly when they build their exchange you will be able to hold your ALQO there to receive profit share from transaction fees.

Something that should be noted with ALQO is that they did not start with an ICO of any kind or a big pre-mine, they just did a tiny pre-mine of 100,000 coins to get the blockchain started which is nothing compared to the total 57 million coin supply, I mention this because they are a small underfunded crypto team from Germany that are working their asses off to build an exchange from the ground up (not a copy paste exchange).

ALQO is aiming to build a usable crypto currency with Dapps and many passive income streams, I think these multiple passive income streams will push up demand for the coin and increase the price quite a bit in the coming years. Especially once everything they aim to build is built making demand for their coin surge.

I think this is a great choice for a low-cap that could make it big.

Ticker symbol: XLQ
Method of passive income: masternodes, staking (hot/cold), exchange profit share
Website: https://alqo.app/
Annual income: masternodes 49%, staking 71.6%, exchange unknown

3 – Kucoin

Kucoin is an exchange based in Hongkong, they currently share profits of their trading platform when you hold their token "KCS" on their exchange, this is a pretty simple way to gain passive income but their token only has one use case which was just described, it has no other use than that.

This is a little bit limiting since the price of the token will be highly dependent on the success of the exchange, but if kucoin can get a high trading volume on their exchange that will guarantee a high price for their KCS token because the dividends go up relative to the trading volume.

Ticker symbol: KCS
Method of passive income: exchange profit share
Website: https://www.kucoin.com
Annual income: varies according to exchange profits, currently 7.05%

4 – Dash

Dash is a masternode coin, in fact the biggest masternode coin by value, currently the 1000 dash collateral you need to start a DASH masternode will cost you $ 160,000 and at current conditions it will return you $ 11,120 that is 6.95%.

Also, a nice fact is that at its highest point a Dash masternode would cost a staggering $ 1,600,000 and by the same math that node would make an annual return of $ 111,200.

I feel like dash will have a good chance at seeing its highs again especially with the innovative thinking they recently demonstrated with their SMS DASH sending solution that is being put to good use in Venezuela.

Ticker symbol: DASH
Method of passive income: masternode
Website: https://www.dash.org/
Annual income: 6.95%

5 – NavCoin

NAV coin is a crypto currency that has 2 block chains one for privet transactions and one for normal ones, NAV is the first crypto to have employed this innovation and that is quite promising.
It’s been in operation since 2014 with its POS staking model.
In the future NAV plans to release some more innovations like privet Dapps & the ability to send bitcoin privately with their NAV coin as a middleman.

Ticker symbol: NAV
Method of passive income: staking
Website: https://navcoin.org
Annual income: about 5%

Conclusion:
In conclusion there are many ways to make passive money from crypto, the ones shown above are just a few and arguably the best options also the great thing is these crypto dividend systems have the possibility of growing over time if the underlying crypto currency increases in value, which as seen in the past with Dash masternodes reaching astronomical prices can be very interesting, I think there s a good chance of that happening in the future.

Disclosure: As always you should do your own research and I’m not a financial advisor. There are risks involved with all these options above.
I myself am invested in the first 3 coins because I think they are great and have good potential for the future, please make your own decisions when investing do not rely on the research of others.