If you have been in the cryptocurrency space for some time, you probably have heard the term #HODL. According to common belief, it was a typo for the word “hold” in a Bitcoin forum when someone asked what he should do with his Bitcoin gains. Another belief is that it actually means: “Hold On for Dear Life”, meaning hold the asset for the long term even if short term gains are tempting. Holding has been the best investment strategy in the cryptocurrency world, but are there other financial benefits for not selling the digital asset?

Dividends have been an incentive in the financial world for keeping an asset, and some cryptocurrencies are catching on to that incentive by distributing their earnings to crypto holders. Here are 5 of the biggest cryptocurrencies that distribute dividends to token holders.

NEO (NEO)

NEO, known as the “Ethereum” of China because of its smart contracts, and the ability for companies to run an ICO using their platform gives dividends to its holders in the term of “GAS”. Due to its Smart Economy system, NEO is able to distribute gas to holders just by holding NEO in a NEO wallet. Here is a NEO to GAS Calculator you can try to check returns.

I recommend the NEON wallet, very easy to use and it lets you claim GAS automatically, and exchange BTC or Tether to NEO using the Binance platform.

ARK (ARK)

Creates “smartbridges” to facilitate communication between blockchains.

If you wanted to trigger an ETH smart contract but hold ark, you could just send the instructions through ark SmartBridge, right in the wallet to trigger the event.

Ark uses a Delegated Proof of Stake in order to confirm blocks.

You can use your Ark share to vote and make a decision on the platform.It costs 1 ARK to vote, the more ARK you hold the more weight you hold in your possession. For example, if you have 2,000 ARK your voting power is equal to 2,000 ARK. How much you will earn for such vote, depends on who you vote for, and the decision of the vote. There is an estimate of 10% yearly returns on votes. ARK lets you store their tokens using paper and online wallets. Again Binance lets you exchnage big cryptos to ARK.

COUNTERPARTY (XCP)

Working on the Bitcoin blockchain, it pays holders with its Proof Of Stake system.

Counterparty lets you create your own digital tokens in a matter of seconds, which can represent anything and are easily exchanged peer-to-peer. What you have to know about this system is that if you hold Counterparty, every time a new asset is created and executed, as a XCP token holder, you will receive dividends or fees for such creation. XCP supply is limited to2.6 Million at the moment and is reduced every time a contract is created. For example if you own 26,000 XCP tokens (1% of total supply), and Jerry pays 10,000 Counterparty for a variety of contracts, the overall supply of XCP tokens is reduced by 10,000. Now because the supply is less than before and if you owned 1% of total supply, after the burned of the 10,000 XCP you will own 1.003% of the total supply. CounterWallet is the official wallet for Counterparty. Bittrex is the best exchnage out there for XCP.

DigixDAO (DGD)

Digix tokenizes gold on Ethereum.

They leverage the Distributed Ledger for its immutability, transparency and auditability by applying it to precious physical assets.

Digix has created a range of technologies including The Proof of Asset Protocol (POA) and Digix Gold Tokens (DGX) on Ethereum. Digix claims that they will pay quarterly dividends to its investors. The way their distribution system works is that they charge fees from the Digix Gold Token and those fees are paid out to Digix token holders.

Here is a guide on how to purchase Digix tokens, and use Binance for this token.

(https://digix.global/dgd/)

Burst (BURST)

Burst is a fast, secure, decentralized and green digital asset.

What makes it “green” is its Energy efficient & green mining, & Proof-of-Capacity (PoC) algorithm using free disk space instead of energy consuming CPUs and GPUs, mining barely uses more energy than just leaving your computer on. The Burst Asset Exchange is a built-in peer-to-peer exchange integrated into the Burst Wallet.

It allows fast, secure, and decentralized trading of Burst Assets. Because of its decentralized nature, there’s no need for outside organizations or agencies to meddle with its affairs, resulting in improved efficiency and reduced costs. Shares in an Asset are an equivalent to an entitlement of ownership over the Asset you have invested in. A person who buys a portion (percentage) of an Asset’s capital becomes a shareholder and as such is entitled to a share of the Asset’s profits. Dividends : Ownership in an Asset entitles you to ownership of their net profits. Assets honor this entitlement to their shareholders in the form of dividends. Another dividend approach used by some Assets is to have a portion of its dividends reinvested in the Asset. In this philosophy, additional shares are issued to shareholders, aside from paying out dividends in Burst. The wallet is simple to download. Bittrex should let you exchange this token.

If you have any questions about how to set up wallets and exchanges, or just want to talk crypto feel free to reach out! Also if there tokens I missed, please write them down on the comments below.

Menajem Benchimol.

**Disclaimer: Content is intended to be used and must be used for informational purposes only. Investment in cryptocurrencies involve greater risk than generally associated with traditional investment and can result in significant capital losses. It is very important to do your own analysis and research before making any investment based on your own personal circumstances. . I am not a broker/dealer or an investment advisor.