Masternodes: Where do I start, and what is that?
When you think of many of the classic investing icons, names such as Warren Buffett, Carl Icahn, and George Soros come to mind. Do you know what all millionaires have in common…? They all have multiple streams of passive income. Outside of the traditional fiat dividend investments many are aware of, inside of the crypto space, masternodes (mns) also provide a ‘sit back and relax’ source of income.
Rewarding individuals that support blockchains, projects distribute a generous premium for hosting a masternode on a server. Yes, we will get into that and how to DYI. Not all project have masternode available, and some have staking in place of masternodes. Really masternode and staking allow for the user to help process transaction, vote, and perform other maintenance items to help a blockchain remain functional and decentralized. Most masternodes require something called collateral: a lump sum of coins or token to show your support for the project. In return, you’re eligible to host a masternode for passive income!
Doesn’t sound appealing to have to lump sum of coins? Try staking. Many project do not require a minimum number of coins to earn additional coins. But think about the masternode holders of $DASH, the first million dollar masternode.
Masternodes: How do I know which coin to pick to run a masternode?
There’s a couple of good places to look for these things:
- Bitcointalk announcements (ANN)
You’ll notice that resources 2-4 provide masternode metrics such as return on investment (ROI), trading volume, coins needed (collateral), masternode worth, etc.
Found a random coin/project you like? Fantastic! Chances are… you just picked a shitcoin (a worthless project that aims to just take your money). Let’s face it, we all know that this is an unregulated space but luckily you have an awesome crypto sherpa to help keep your money in your pockets.
There’s more to it than just picking a project, buying a bunch of coins, and hodling. We’ll continuously walkthrough these considerations until you become a pro!
Disclaimer: Not all random coins are shitcoins, some unknown project have potential.We just haven’t gotten to how you determine that.
Masternodes: Okay, so how am I really supposed to start a masternode?
For unknown coins/projects: Stalk them. Yes, I said it. Be that creeper in the project telegram/discord that soaks up everything about the project. Did the admins kick out someone for asking why their whitepaper looks like it was copy pasted from another project? Are the developers available at all? Are there only three people within the group?
For well-know coins/project: Stalk them…
The point is that you should be very familiar with project objective, feasibility, and milestones. Trustworthy developers should be delivering on their promises, as well as, their roadmap. Comb through project documents, ask questions, and see what the crypto community thinks about the project in various public forums. Arm yourself with information!
The most successful masternodes I’ve ran are new ventures that I found on bitcointalk, did my research and rode the money train with my team from the bottom, up.
….More next time.