What are MasterNodes? How to find the profitable ones?

in bitcoin •  4 months ago

Master-node is a concept that increases the security on the block-chain as well as rewarding the Node holders. Master node concept has started with Dash most notably. Dash implemented a system that required 1,000 DASH in order to be an eligible. In today's rate, that's 154,000$ that generates 30$ daily. Of course, the more nodes are in the system, the less payout everyone gets. Dash currently has 6.9% ROI due to being so popular however, there are variety of other coins that offer as high as 10,000% ROI. Master-node space is often perceived as high risk high reward investment since most of people do not have enough funds to get high market-cap Nodes.  I will explain; how to spot the scams, what to look for when investing in MN coins and useful links.

  1. How to spot scams
    • Check their website
    • Check if they reveal their development team (if legit, they will unless they are community driven)
    • Check their Bitcoin ANN page, see if people are calling them out
    • Check the development team on Linkedin 
    • If Dev team looks sketchy and a coin has crazy ROI, stay away
    • Here is an example of high likely scam candidate:
    • What to look for when investing in Master node
      • After making sure that the coin that you want to invest has passed the scam test that is provided above
        • Check their daily volume, 
          • If it is too high for the market cap, check the previous days and weeks for volume confirmation
          • If it is too low, think about how you are going to sell your rewards if there is no buyer!
        • Check what exchange they are listed at;
          • Crypto-bridge is the bare minimum that they need to be listed at
          • If you see any big exchange like coinexchange, HitBTC that's usually a good sign
        • Check how many master nodes there is online and how much % of the coins are locked in MN
          • The more MN there is in the system, the less ROI there will be
          • On the contrary, the more MN means the bigger % of the total supply is locked in MN so the price likely to be more stable
        • Check if they have been reviewed by KYD (Know Your Developer)
          •   https://review.kydcoin.io/
          • These guys are also a master node coin that reviews teams and makes sure they are legit
          • Here is an example of a legit MN coin with a community driven team and a lead team
            • Community driven coins do not have a set dev team, the whole community works on the project such as SmartCash, they do not show their face however, everyone knows that it is a legit project
            • Lead team means that there is a set dev team that shows themselves on their team page, this adds trust and transparency between the investors and developers such as KYD team;
        1. Useful Links

        *Let me know down below, if you want to see a masternode setup guide or my masternode story*

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