Looking Into Masternodes
If you’ve been into cryptocurrency you’ve probably heard the term masternode before.
But what exactly does it mean? I explain below.
Most people hear about and get into masternodes after hearing about the passive income potential. More on that in a moment.
A masternode is a server on a decentralized network, ie. a blockchain’s network. And they perform functions and services on the network that others cannot.
For example, masternodes can increase the privacy of transactions, enable faster transactions, participate in governance, enable budgeting, and other such services.
In order to run a masternode you generally need a sizable amount of the coin of the blockchain. A good example is DASH where you need 1,000 to run a masternode. That would cost over $350,000 a today’s prices.
However, by running a masternode you’re entitled to a portion of the block rewards. Dash, for example, awards 45% of block rewards to masternodes.
Each masternode system is different. The stake you need varies and so do the rewards.
To check out the different coins with masternodes check here and here.
Now before you go buying coins for a masternode keep in mind you have to know how to set up a masternode. You may need to know some Linux from what I read.
There’s also masternode hosting services that do all the technical work for you.
It looks to me like masternodes are a good way to participate in the blockchain, and the income aspect is intriguing too. I might have to try and set one up.
What do you think of masternodes?
and trade cryptos on Binance
I think a smartcash node sounds interesting right now since it's down to like $0.16 and I know it would cost something like $1,600 for the node. The question is could you run like a little Raspberry Pi from your bedroom or would you need a VPS from something like Digitalocean? That would be an additional monthly cost of course in addition to the initial outlay of $1600.
I hear VPS is the way to go.
I like SMART I'll have to check out their masternodes.
I'm setting mine up at the end of the month using VULTR. 5 bucks a month is nothing and it's worry free. Excited to see how SC does in the upcoming weeks.
So if the price of SC coin is going up, your profits do too, and vice versa, correct?
I don't know the exact calculations, but a % of the rewards go to the people who hodl their smart in their wallet (smart rewards) and another % goes to the people running nodes.
But long story short, yes. The rewards % will fluctuate with the price going either direction.
with this much high cost, i don't think so it's beneficial.
$350,000 is a hell of an amount mate!
Agreed but that's just one of them. Some are much much cheaper, like under $100.
now that's something cool man!
I think Masternodes are a great idea for passive income. I myself, do not have the experience to set one up. Let me know how it goes...
Will do... going to give SMART a try.
Is there a masternode you have running?
None yet... I'm still learning. But I definitely want to try one out.
Fair enough. At the moment I have my money in Bitcoin and I don’t want to take it out. I don’t know why just a gut feeling that I shouldn’t get a masternode right now I don’t know.
Yea makes sense to know what you're doing before jumping in.
Yeah, but there are many major differences as well.
#1. Impossible for the little guy to mine.
#2. Wall St. has their feet in the pond
#3. BitConneeeeeeeeect!
#4. The IRS want their "fair share"
I find it hard to believe that we'll be able to reproduce a 2017 style run-up based on the factors listed above.
Wall St has only dipped a toe... big money coming in. Just buy some BTC and hodl ;-p
The question is could you run like a little Raspberry Pi from your bedroom or would you need a VPS from something like Digitalocean? That would be an additional monthly cost of course in addition to the initial outlay of $1500.Fair enough. At the moment I have my money in Bitcoin and I don’t want to take it out. I don’t know why just a gut feeling that I shouldn’t get a masternode right now I don’t know.
From what I've heard VPS is the way to go so it's continuously running.
Makes sense to hold onto your BTC :)
Looking forward this master nodes sir thanks a lot for sharing have a great day sir.
In some points masternodes are better than trading...
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I pleased to read about masternodes. It's really helpful for fast and secure transaction, have a privacy of transaction that's really awesome and a helpful service for us. Thanks sir @g-dubs for sharing the informative content.