One of the ways to make money in the crypto-space, is by owning and running masternodes like a pro.
In the world today, there’s a misconception that it’s only chart experts who can analyze the crypto market, or those day-traders that actually make substantial money from cryptocurrency trading investment sites like Binance.
But that was never true at all.
In crypto-sphere, there are so many ways in which anyone can make good amount of money, and the best part of it is that, you can make money fast online with cryptocurrency.
It all starts by choosing investment strategies that works best for you according to your reward, or risk ratio for targeted Return On Investment (ROI).
Before we dive straight into discussing about this new way of making money with cryptocurrency, let me first of all, put you through on masternode meaning.
Let’s dive in right away!
What is a masternode?
Masternode can simply be defined, as a full cryptocurrency node, or computer full node wallet that keeps the a copy of the blockchain of any cryptocurrency in real-time, just like you have that of Bitcoin full nodes which is always running.
Talking about what is a node, masternodes may not really be the same with normal computer nodes due to its functionality.
Masternodes are somehow different from that of Bitcoin, or Litecoin wallet nodes which only keeps full blockchain and relay blocks, or transactions as a full node. It also performs several other functions.
Functions of a masternode
- Increasing transaction privacy
- Instant transaction availability
- Voting and governance participation
Enabling budgeting and treasury system in cryptos these masternodes always communicate with each other to form a decentralized network just like that of blockchain, but they’re always referred to as MN.
Note: They varies from crypto-to-crypto depending on how the masternodes are been implemented, but more or less, they still perform the basic functions listed above.
How do masternodes work?
Once a masternode is live, it accommodates a unique series of functions, such as instant and/or anonymous payments.
They also enable a decentralized governance system that allows node operators to vote on important developments within the blockchain.
As compensation for their troubles, masternodes typically share an equally 45% of block rewards with the blockchain’s miners.
The other 10% goes to the blockchain’s treasury fund, and operators are in charge of voting on proposals for how these funds will be allocated to improve the network.
It’s important to note that simply holding the requisite amount of currency for a masternode is not enough to run one.
Each currency has its own guidelines for maintaining a masternode, and if these conditions aren’t met or the currency is moved from its staking position, a masternode will cease operating.
What is Masternode Hosting?
Masternode hosting is a process of setting up a VPS server dedicated on a permanent IP to run a masternode operation.
Masternode hosting is extremely convenient way to generate passive income as it utilizes the power of a web server in order to strengthen as well as streamline the transaction process for a specific crypto ecosystem.
By investing funds into a cryptocurrency wallet, it allows the server to become part of the decentralized infrastructure of the currency that enables transaction to take place.
In doing so, the owner of the masternode hosting earns a substantial ROI.
How do I set up my Masternode?
Masternodes can actually be run by anyone. However, there are rules that follows up to ensure that the system doesn’t get malicious to the investors.
The entry barrier is that one needs to collateral certain units of the particular cryptocurrency that they want to run a masternode.
This is done so to make sure that masternode owners don’t engage in cheating or corrupting the whole system, by following up with the entry barrier, where masternode owner or operator has a stake in the whole idea.
This option, it’s practically impossible for a cryptocoin node owner to cheat, because the person has a stake in the system which is retained as collateral, while running the whole system.
Even if the operator tries to cheat, the punishment is always to have their own cryptocurrency HODLing being devalued.
Now that you have understood the whole concepts, rules and regulations that goes with running a masternode.
Let’s talk about the requirements to set up one below:
- You need a minimum amount of coins of the particular crypto node
- Masternode hosting requires a VPS hosting for 24×7 running
- A dedicated IP is strictly needed for running a masternode
- A cloud storage space is needed to store the blockchain
- Major masternode installer.
Now, I know you’re already getting overwhelmed with the whole process and guidelines needed to follow before getting to set up a masternode to make money with crypto.
Well, it’s already time we start talking about how to earn income with this thing. But let’s discuss how useful it is for cryptocurrency investors.
Why are masternode coins useful for investors?
Masternodes are very useful for cryptocurrency investors because of the incentives that can be gotten.
A masternode owner earns monthly or weekly interest ROI for HODLing a particular coin in the system.
Mind you that each cryptocurrency has its own incentive models through which you can earn more cryptocurrencies as an MN operator.
If you’re an investor of any cryptocurrency that allows you to run masternode, I will personally advice that you explore this option as it’s known as a cool Passive Income.
Note: Make sure to choose the right cryptocurrency if you’re going to investment in crypto running masternodes for profit. Try to always compare the percentage yield or Return On Investment (ROI), so you’ll know your expected earning before hand.
The best reliable Masternodes Coins
Currently, there are many cryptocurrencies in the market that allows their investors to run masternode, but not all of them are worth the stress due to meagre ROIs they provide.
There are numerous projects that make use of masternodes in their networks, but many of these projects are smaller and not widely known in the ecosystem.
Some notable masternode coins include:
- Block (BLOCK)
- Bata (BTA)
- Crown (CRW)
- ChainCoin (CHC)
- Dash (DASH)
- Diamond (DMD)
- ION (ION)
- Monetary Unit (MUE)
- Neutron (NTRN)
- PIVX (PIVX)
- Vcash (XVC)
- XtraBytes (XBY)
Do you know how to choose a perfect (or best) masternode coins online list that allows profitable business in running their masternodes?
I guess, with this masternodes list of links to identify good masternodes coins to base your masternode today, you can make profit by investing in hosting one of the best masternode.
Like we discussed earlier (above), try not to cheat in the system, so to avoid loosing your cryptocurrency investment (stake) in running your masternode.
You can buy any of the masternode coins from strong, theft-free cryptocurrency exchange aggregator like CoinSwitch. They are more reliable for directing purchasing your desired crypto-coin of choice.
I will also advice you to get an offline HD (Hierarchical Deterministic) crypto wallet to safely secure your cryptocurrency from lose due to theft or hack.