Passive Income out of Crypto Currencies

NEO, the first Chinese crypto currency to hit the market back in 2014, is starting to give the big name players a run for their money. Sometimes better known as “Chinese Ethereum,” NEO isn’t the newest crypto coin to hit the market, but it has some desirable features that make it worth putting on your radar.

Modeled after the successful platform Ethereum created, NEO was developed with the intention of combining digitalized assets with a digital identity, and by using smart contracts and DApps, create a smarter economy. The goal of NEO is to put individuals back in control of their financial decisions and improve upon the Ethereum modal.

Unlike Bitcoin or Ethereum, NEO was developed as a Proof-of-Stake crypto coin. This means that every NEO coin that will ever be available was created during the genesis block of formation. All NEO coins were pre-mined at that time, giving this crypto coin a hard market cap of 100 million.

Being a Proof-of-Stake (PoS) crypto coin means that new blocks that are added to the network’s blockchain must be forged, or created, rather that mined as in the case of Proof-of-Work currencies like Bitcoin and Ethereum.

These Proof-of-Work (PoW) blockchains reward a miner, or a person that solves complex crypto graphical puzzles, with more coins to create new blocks along the network’s blockchain and to be used in validating transactions.

The PoS coin, in this case NEO, uses an algorithm to establish distributed consensus from one of the existing accounts. In a semi-random way, the network algorithm selects a user’s account based upon the available wealth, or stake, that the account has to offer for the creation of the next block into the chain.

This ensures that the network remains a decentralized commerce platform, and those who stake wealth for the blockchain network are rewarded with more staking coins. Staking is when you buy and hold a Proof-of-Stake (PoS) coin in a specialized wallet for a given period of time. The token that the NEO platform uses to stake is called GAS, formerly known as Antcoins, or ANC.

Due to the way that NEO was created as a PoS currency, NEO presets a unique opportunity to its savvy users. NEO users enjoy the low risk opportunity of earning smart passive income. Smart passive income can be earned by way of dividends garnered through staking or holding.

According to Investopedia, “A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors, and paid to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or as other property.”

When enough cryptos currencies participate in a similar kind of profit sharing, the term is called crypto dividends.

GAS, is the secondary token at work on the NEO blockchain platform and is operative in staking. This coin is used for resource allocation and network charges for platform operations like running DApps and smart contracts. GAS also provides the incentives for managing the block chain. When you stake this coin in a NEO wallet, you begin to earn a share of the dividends.

So when you stake, or hold, GAS tokens in a NEO wallet, you are earning crypto dividends on the company’s profit as a whole. Annual returns can run average of 5.5% and are distributed in the form of NeoGas tokens. At the time of this writing, each token is valued at $44.50.

Another attractive aspect of staking GAS is that you are not required to keep your staking wallets open at all times in order to earn your dividends. Not all wallets allow you to stake GAS however, so it’s important to select the wallet that you’re going to use very carefully.

The other way to earn smart passive income is simply by buying a crypto coin and holding it in an online wallet. This effectively removes the coin from the open market, and brings down the available supply. This in turn raises the value of coins that are left in the remaining supply, including the ones that you have already bought and are holding onto.

In the case of the NEO currency, it is the NEO token that is used for holding. This token operates the primary investments on the blockchain, block creation, network management, network changes, and various other consensus requirements. These are the coins are only divisible by one, so the smallest unit you could ever own is one.

As the crypto currency market reaches mainstream audiences, people have started to think that only way to earn money using crypto coins is by actively trading them on the day markets. This common misconception is drawing people away from some of the easiest ways to let your coins work for you.

Hold your cryptocurrencies or stake them in an online wallet and watch your money grow by way of dividends without the stress of trying to figure out the markets. Smart passive income can’t be earned with every coin, but now that you know a little more about NEO, you may be tempted to try your hand at earning dividends with the rising crypto coin.