Masternodes, a way to generate passive income
Masternodes

Masternodes, a way to generate passive income

By MichDon | MichDon | 16 Apr 2020


A nice and interesting way of investing in crypto can be: investing in the right Masternodes can be a nice way to generate passive income with cool technology. A few months ago I came into contact with this and in the meantime I have done a lot of homework, talked to many people and, to get acquainted with this world, I have also stepped into a few masternodes myself.

Some Masternodes are very lucrative, others less so. On websites, forums, Discord and Telegram channels I have found a lot of information and have made the following story or summary of this to explain in understandable terms what it means if you want to invest in masternodes.

Masternodes

Masternodes are servers in a decentralized network. Certain blockchain networks use Masternodes. Each network is different, so the Masternodes also differ. These nodes ('nodes') ensure that the rules are observed on the network.

In addition to Masternodes, there are also normal nodes. Bitcoin also has nodes and they are all the same in the network. Masternodes can usually do that little bit extra, such as increased privacy on transactions, making it possible to execute transactions directly, making it possible to work with reward systems within crypto and determining the policy within the crypto project.

Differences

Masternodes also have a decentralized budgeting system as a specific feature. Nodes are not exclusive to proof-of-stake or proof-of-work networks only. To run a Masternode you have to meet special requirements. A masternode uses the same wallet software as a regular node with the same blockchain technology. For example, you need a certain number of coins, a stronger hardware to complete all tasks such as fast transactions and ensure a safer network. You must also have a static IP address.

HODLEN

If you want to run a Masternode you have to lock (Lock) a certain number of crypto coins in your wallet. So it is actually a way of HODLEN. How much and how often a node receives a fee differs per network. It depends on, for example, the "Block Reward" and the amount of transactions processed by your Masternode. The income you generate also depends on the coin: how that network rewards you and how much your crypto coin eventually becomes worth.

Find the masternode

The following also applies to Masternodes: DYOR. Good websites include Masternodes.online and Masternodes.pro. You can set up a Masternode in different ways. You can even keep your computer running all day to always support the network. If that is not possible you can also set up a virtual server VPS. You then rent a server such as VULTR or Ihost, which ensures that your node always remains in the air.

Setting up a node is relatively easy. Once you have everything you need, it's a matter of following the developers' instructions. Your coins give you a certain power within the network you have chosen. At the same time, of course, everything stands or falls with the value of the currency. Very cheap Masternodes seem interesting, but then you have to trust that the network will continue to exist and that it will represent a certain value. Be picky and don't buy coins for every Masternode you see.

If you are looking for a good Masternode, there are a number of basic criteria:

  • Chance of Adoption - will the project be used, what is the goal, is there a demand for it etc.
  • Active team - closely involved in community, active on Github, social media, Discord etc.
  • Quantity of Masternodes> The more Masternodes there are, the better it is, there will be scarcityand that's better for the price.
  • Volume - there is active trading - you must be able to sell your coin, $10,000 is the suggested minimum.
  • ROI - Return on Investment - The higher the ROI, the higher your return, of course.
  • But a high ROI with a team that is not working on the coin is worth nothing.This ROI can be read on the website of the coin but also on, for example, Masternodes.online or Masternodes.pro.

Setting up your masternode

If you have made a decision to buy a Masternode, start downloading the coin from the correct wallet. You can do this via the website, but you can always check on Discord official links or via Github if a more recent update has been made. On Masternodes.online you can see on which exchange you can buy the coins. Buy the amount you need for the Massternode plus some extra for the fee. Send the purchased coins to your wallet as soon as it is completely in sync. Encrypt the wallet with a password. (Settings> encrypt wallet)

Steps

The further steps to set up a masternode are as follows (if you use https://ihostmn.com/):
1) debug console> getaccounaddress MN01
2) send exactly the number of coins you need to the address obtained
3) debug console> masternode outputs> save the result on a scratch sheet
4) go to Ihost> create an account (the 1st time) and make sure there are funds on it (paypal or Bitcoin)
5) select the currency of your choices there> enter MN01 and your obtained masternode output (step 3)
6) If you have had 20 or more confirmations of your internal transfer in your wallet, you can buy click
7) After that, you will get the full line to copy and paste into your masternode configuration file in your wallet
8) Once you have done that, save and exit.
9) Then close your wallet and restart.
10) If this sync is> select masternodes> masternode that is missing> start alias
11) The time then jumps to 00:00, after a few hours it will start automatically.
12) Make a new backup of your wallet; > Backup Wallet (this must always be done after a new one address has been created).

In Discord / Telegram or other coin communities, they can tell you how long it takes to receive your first rewards. This is usually about three times longer than the subsequent rewards.

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MichDon
MichDon

Crypto entousiast, father, taekwondo


MichDon
MichDon

Crypto-enthousiast dad with an aim to try to inform readers of new and interesting projects, upgrades and updates to projects and of course any news of interest on the Crypto spectrum.

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