In order to fully understand masternodes, it’s awfully beneficial to first understand what a regular node is.
If you need a refresher course on nodes, or if you want to learn more about them, check out my past video titled: “What You Should Know About Nodes: Bitcoin & Dash”
Masternodes are nodes that allow their networks to offer special services to their users.
Most commonly, these services include:
- Anonymous transactions
- Instant transactions
- Participation in the form of voting rights to decide fund allocation for special projects.
You can think of masternodes as enhancers of a network. They facilitate the extra perks that would overload normal nodes.
VIEW VIDEO HERE
Passive incomes are possible because these masternodes are paid for their work.
This income usually comes from a portion of the block rewards. Each network that offers masternodes has differing payment schedules and percentages. Running a masternode does not require the same amount of computing power as mining for Bitcoin, but they often require large investments in that particular coin.
There’s also a nice economic upside for networks that have masternodes.
Because they require large amounts of the coin to be stored in a wallet in order to remain valid, masternodes also help the price of that coin to remain relatively more stable. The range for required investment can vary anywhere from 500-10,000,000 coins required!
What it takes to run a masternode:
Significant investment in that particular coin
Each masternode has different requirements
Appropriate wallet to store the coins
Computer that runs 24/7
If the computer goes down this could and most likely does, affect your payouts.
Because they offer special services, they are often complex and high maintenance to keep them up and running. Some might consider them to be more difficult then running a fully validating node, yet less difficult than a mining rig.
If you’d love to take part in running a masternode but you don’t have the resources in the form of a constantly running computer to do so, you can use masternode hosting services.
What you’ll typically need for masternode hosting service:
Significant investment in the coin
Stored in an appropriate wallet that YOU control
Subscription fees to the masternode hosting service
If you want to take advantage of a masternode hosting service, please pay attention here.
When choosing a hosting service, if they tell you to send your coins to a wallet that they own or control, if they tell you to give them your private keys, most of the time this is the signal of a scam.
One exception would be if you’re looking into using a “pool”. Which means you would be contributing coins along with a group of others to meet the investment requirements of a particular masternode.
You’re payouts will reflect the percentage of your investment to the pool.
Just keep in mind that with these pools, you are putting all your trust in the entity that controls the wallets and distributes the payments.
I’ve shared this website in past videos but it doesn’t hurt to share it again. This one is a good visual for those of you who want to explore the masternode options that also gives you an idea for your potential return on investment.
If you’re still on the hunt for passive income with cryptocurrencies and masternodes don’t really fit what you’re looking for, don’t miss my next video which will be covering mining pools.
Additional Reading:
Discussion on potentially good masternodes
Masternode Hosting Service
Example of a sketchy Masternode Pooling service (Notice the typos)
Comprehensive list of masternodes and their ROI
There is also a masternode share programm for DASH with only 20 DASH deposit. I am using it and its working fine.
https://dashmasternode.io/
Hosted by splawik, part of DASH core team
https://www.dash.org/team/
Is it safe though?
I use this for about 2 months now and i am content.
With the service above you even get voting rights for the DASH treasury funds.
when you have an account once, you can add DASH from time to time, also smaller amounts.
If you are not content but interested you should join their discord server and check if adress and accounts you sent your DASH to, are valid.
How much can I make with 200 dash?
the service promises about 9% Return.
For my 20 DASH i get 0,035 DASH every 5-10 days on a set wallet. So lets say in a year i have 52 payouts that result in a revenue of 1,82 DASH so iam at 9,1%.
Hope this information was helpful.
Please always check with the provider Splawik if he changed conditions.
Hi
Thanks for the information about the shared Dash Masternode. Does it do autoreinvest?
I would be careful, A lot of scams will last several months. The more trust they develop the more you are willing to invest and recommend to your friends so they can get invested. Then they might say they were hacked or something or just disappear all together with your DASH. Bitconnect was around for over half a year and gained a lot of trust and turned out to be a scam.
thx for the adivce. Bitconnect was obvious scam/ pyramid system. Other tokens serve a real purpose.
pyramid system collapse pretty fast. DASH still operationg smoothly.
Well explained. thank you :)
Hi Heidi!
Thanks a lot once again for this new video.
I am also looking forward to invest into a masternode in the future cause of the passive rewards of course.
WOW thanks a lot for the upvotes! I really appreciate that.
Great content, congrats!
Here are a few more passive income possibilities: How to earn a Passive Income with Cryptocurrencies
I like post you and video bitcoin, regards @launglilawangsa in crypto steemit adn follow @heiditravels
Master node. Okay
Thanks for everytime updates MA
very useful content.
thanks so much ...
Excellent content as usual Heidi! Keep up the good work.
very very good informations in your video
very useful mam. thanks for the information. hope you liked my post also :)
Insightful and informative post @heditravels the pictures cut my fancy..
Thanks for sharing this useful content!
Hi Heidi, great article. i would add that anyone, who would like to run a node without any technical knowledge should look into gin platform. They are hosting masternodes and maintaining from few approved platforms.
keep sharing , i am a crypto trader and i like new news and follow good one thanks
THAT BEAUTIFUL WOMAN! @heiditravels
What's your opinion about GINCoin (GIN) @heiditravels?
Hi Heidi
I am sorry to say Imissed this post when it came out, so my long previous comment asking you to revisit Masternodes probably seems odd. Since you did here. I hope you will review the Gin and Apollon platforms because they combine the ease of a shared Masternode with the security of a cold wallet. There’s a lot of ways to lose your crypto once it leaves your wallet, so these two platforms are significant developments in this space.
Thanks
@shortsegments