In the cryptocurrency world, there’s a misconception that, it’s only chart experts who can analyze the market or are day traders that can actually make substantial money from cryptocurrency investment sites. But it’s never true at all.
In cryptosphere, 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 by choosing strategies that works best for you according to your reward or risk ratio for targeted Return On Investment (ROI).
However, one of the ways to make money in the crypto-space is also by running masternodes, but 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 so you’ll get to understand and follow alongside with me as we go ahead.
What is a masternode in cryptocurrency world?
Masternode can simply be defined as a cryptocurrency full node or computer wallets that keeps the full copy of the blockchain of any cryptocurrency in real-time, just like you have that of Bitcoin full nodes which is always running.
By the way, masternodes may not really be the same with normal nodes due to its functionality.
Masternodes are somehow different from that of Bitcoin/Litecoin nodes which only keeps the full blockchain and relay blocks or transactions as a full node. It also performs several other functions.
Functions these masternodes perform
– 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 cryptocurrency to cryptocurrency depending on how masternodes have been implemented, but more or less, they still perform the basic functions listed above.
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 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.
What are Masternode Requirements?
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 collateralize certain units of the particular cryptocurrency that they want to run a masternode.
This is done so to make sure that masternode owners doesn’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.
With this option, it’s practically impossible for a masternode owner to cheat because he/she has a stake in the system as collateral while running the whole system and 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:
#1. You need a minimum amount of coins of the particular crypto you’re preparing to have your masternode hosted
#2. Masternode hosting requires a VPS hosting for 24×7 running
#3. A dedicated IP is strictly needed for running a masternode
#4. A cloud storage space is needed to store the blockchain
The requirements listed above, are pre-requisites to having a functional masternode based on any cryptocurrency.
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 masternodes 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 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 meager 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 the perfect or profitable masternode coins list that allows profitable business in running their masternodes.
This can be found out by checking out these links below:
• Masternode Pro
Final thoughts on Maternode Hosting
I guess, with this masternodes list of links to identify good masternodes coins to base your masternode today, you can make profit already. I will also advice you to bookmark this page, because it will always be updated with latest ways to make money online with masternodes.
Like we discussed earlier, above, try not to cheat in the system so to avoid loosing your cryptocurrency investment or stake in running this thing called masternode.
Have any opinion concerning how to run a masternode? Or you still have something omitted in this post, and would want me to review or add it, please say it in the comment zone.