MASTERNODES – What is it? Cryptocurrency Passive Income

MASTERNODES - What is it? Cryptocurrency Passive Income

MASTERNODES. What is it and how to earn passively? In this article, we will learn in detail what masternodes are and how you can make money from them.

MASTERNODES

What does the miner get money for?

If simplified, then for the computing power of your computer, which serves to protect and maintain the Bitcoin blockchain network. This algorithm called PoW (Proof of Work), where under the work I mean the computational power spent. On a similar principle Most existing cryptocurrencies work. However, not all …

The disadvantage of the PoW algorithm is the ever-increasing energy and processing power consumption. You may have heard popular speculations about the fact that mining bitcoins consumes energy more than an entire country, such as Poland. This drawback is not present in a number of other cryptocurrencies (for example, DASH or RGUH), which use a different PoS algorithm (Proof of Stake – Proof of Share) instead of PoW. In this case, the reward is received by the miner on whose wallet (note) the required number of coins (share) is reserved and which performs the functions of supporting the network (for example, shuffles the transactions of participants for anonymity).

MASTERNOD

MASTERNODA is a network node (wallet) with constant 24/7 Internet access installed on your PC or Remote Server with a reserved amount of a key coin.

TWO SIGN OF MASTERNODES:

  • Always ON-Line (Therefore, it is better to run the hoster on a dedicated server, rather than at home)
  • A certain number of coins is frozen (it is different for different currencies. For example, DASH needs 1000 coins)

MAIN FUNCTIONS MASTERNODES:

  • INSTANT TRANSACTIONS
  • ANONYMOUS TRANSACTIONS (DarkSend – an analogue of bitcoin mixers). It is a matter of mixing transactions in order to anonymize them.

Most often, in your wallet when transferring money to another address (wallet), you can do:

  • USUAL TRANSFER (standard commission)
  • DARKSEND TRANSFER (your transaction will be mixed with many other transactions and will be passed through many masternodes that will mix everything). If if you put the necessary checkmark DarkSend, then they will take you increased commission to masternode owners

Example masternode:

CONCLUSION: There are cryptocurrencies whose network operates due to special complete nodes (masternodes) that perform service functions (anonymous and fast transactions). In order for you to have the desire to connect such complete nodes, a reward is provided in the key coin, which you receive PASSIVELY. Those. if you connect the necessary masternode once, then it starts to bring in regular money without your constant participation.

What does it look like in practice?

1) Choose a promising coin https://masternodes.online/ 2) We buy the right amount of coins 3) Rent a remote server (VPS) 4) Download the coin wallet from the official website and install it on your PC (we will store the money at home, and not on the VPS). 5) Install the masternode on a rented VPS 6) Run the masternode from your wallet installed on the PC. 7) Passively receive coins in your wallet and change them on the exchange.

What is the size of the reward?

Single no amount of remuneration. Each currency has its own reward, which may vary depending on the life of the coin and the number of connected masternodes (the more nodes, the lower the profitability because the profit is divided among all masternodes). Yield coins can be found here: https://masternodes.online/

She indicated as ROI (return on investment). For example, if we open a coin PURE, then we will see that its ROI = 300.78% This means that your investment in the masternode will double in 121 days.

ROI example:

You You see that in order to connect the masternode, 5000 PURE is required, which at the time of this writing were worth $ 622. It means that if the number of nodes and the price of the coin does not change, then on your wallet in 121 days there will be 10.000 PURE or 1244 $.

The higher the% ROI, the Money back faster. There are coins that can recoup investments in a couple of days, but in a couple of years. Watch and analyze.

Masternode and PoS are the same thing?

No. If the coin works on the PoS algorithm, then you can set wallet (this is a normal NODA) and after a while on your coins interest growth will turn on. If you want the growth rate to be above, then you need to connect the MASTERNODE. Those. need to:

  • A fixed number of coins that are frozen (not any number, but the right one)
  • Permanent access to the Internet 24/7 (use a remote server for this)
  • You need to deploy the masternode (give the necessary commands to the server and wallet)

Why put a wallet on a PC if we already bought a dedicated server?

In order not to store your frozen money (key coin) on a remote server. The foreign server is a foreign server. Therefore, we launch the masternode on a remote server (so that it is online around the clock and does its job, for which rewards are awarded), but we store frozen money (proof of share) on the wallet that we installed on our PC or laptop.

Problems

Problem №1

If the price of a coin will fall while your masternode worked, then your income and your frozen deposit will depreciate. You can really double amount of key coin. But there is a chance that this time, the coin itself will cost ten times cheaper than when You ate her to launch a masternode.

This is the most important and the main problem that cannot be solved because you cannot affect the price of a coin. All you can do is to choose stable projects (but the more stable, the lower the profitability) and take profit on time (regularly bring income to the exchange and sell).

ATTENTION! Never connect fresh masternodes with a payback of several days because the reason for the high demand and prices for such coins is due a large number of people wishing to earn (a lot of schoolchildren at this moment time wants to connect a node and therefore they all buy coins, thereby raising its price to heaven). Usually in a week or two coins costs several times less.

Problem №2

The yield (ROI) of a coin always drops over time. This is due to the size of the block reward (it decreases as the coin develops) and the number of connected masternodes (the size of the block reward is shared among the masternode owners). All this is not a big problem, subject to conservation or growth. coin prices. Because if you suddenly stopped arranging a deadline return on investment, you can sell the deposit any day.

Problem №3

Seldom when a coin can be quickly sold for good money because they new and traded on small exchanges with low liquidity. Cause of this: few orders for assassination and sale. I usually place an order on sale and forget about it for a day or two. If I need money fast, then I am lowering the cost and making a new order. This is the market.

Problem №4

Sometimes, if the developers did not paint detailed instructions, it’s difficult install masternode and update it. As for the installation of the node, then usually, developers are interested in giving you an understanding instructions. As for the update, we are talking about reinstalling new wallets after updating them (you need to download a new one, install and wait for synchronization with the network). If you do not, then you will sit on the “false / old blockchain chain” i.e. coins will be mined but not the ones that can be used. The problem is solved using MONITORING.

How complicated is this?

Any it seems complicated until you have studied it. It was very difficult for me at first because I did not have such similar instructions. Technically everything is quite simple because it consists of a series of simple steps that need to be performed sequentially.

The most difficult thing is not to launch a masternode, but to select a promising coin for it.

Among the 4 problems that I described above, the most difficult is the first (everything else is nonsense). No one knows exactly how the price of the coin you choose will change. It can fall down, or it can go powerfully up. Therefore, I try not to take too young (up to 2 weeks) coins – this is too risky.

MASTERNODES

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