Tokens & coins that offer rewards from owning a masternode is an excellent source of passive income. For those of you who are not familiar with or those who are just beginning to scratch the surface of getting involved with owning and operating a masternode for passive income, it may be best to get a basic technical understanding of what a masternode is and does and how you actually earn passive income from them.
So here it goes!
Masternodes are computers that run a wallet and make decisions, such as locking transactions, coordinate mixing of coins, and voting on budget funding. Masternodes require a fixed amount of tokens or coins as collateral, a dedicated IP address, and need to be able to run 24 hours a day without a more than a 1 hr connection loss. Masternodes get paid a percentage of the block reward on every block, which is distributed to masternodes one at a time. For example, owning a DASH masternode typically pays out around 2 DASH to each masternode every 7 days. However there is a minimum requirement of 1000 DASH to run a DASH masternode and the cost associated with this type of masternode could potentially be far too expensive for most people.
At the time of writing this post the cost of 1 DASH is $186.63 (according to CoinMarketCap) making the amount of collateral needed to run a DASH masternode of $186,630.
*Please note: Aside from providing a basic outline of what a masternode is and how it works I will be providing an option for those of you who are interested in earning passive income from running masternodes however may not have the amount of collateral (tokens or coins) needed to run a masternode.
Masternodes enable the following services:
InstantSend (instant transactions). In contrast, Bitcoin takes about 10 minutes to confirm a payment.
PrivateSend (anonymous transactions). In contrast, Bitcoin transactions are totally public and traceable. Only the identity of the addresses is anonymous.
Decentralised Governance (masternodes govern, while the blockchain funds development). In contrast, Bitcoin is controlled by a few big miners and funded by 3rd party centralized institutions with self interests.
Think of a decentralized payment processor.
Masternodes are also given voting rights on proposals. Each masternode has 1 vote and this vote can be used on budget proposals or important decisions that affect the coin or token.
HOW MUCH CAN I EARN FROM A MASTERNODE?
Masternodes cost money as mentioned earlier and as well technical effort to host so masternode operators are paid a share of the block reward to incentivize them. With current masternode numbers and rewards masternodes earn approximately 2% - 12% return. This reward falls off in subsequent years but as the value of the token rises and the supply goes down, masternodes should still be sufficiently incentivized. This projection also doesn’t count the fees that masternodes earn whenever someone uses its payment processor services.
VISUAL OUTLINE OF MASTERNODE PAYOUT STRUCTURE:
WHAT DO I NEED TO HOST MY OWN MASTERNODE?
As mentioned earlier, to host your own masternode you would need the minimum amount of tokens. Different masternodes have different token and coin amount minimums. Some as high as 250,000 coins per masternode. For example, a Graft Tier 3 masternode requires 250,000 Graft. A tiered masternode system usually offers levels as it pertains to the amount of coins you hold in that wallet. Masternodes that have a large amount of coins in their wallet could earn a larger percentage however not all masternodes offer tiered payouts. For example a DASH masternode does not offer a tiered payout for the amount of DASH held however Graft does offer a tiered payout with a minimum of 50,000 Graft being a tier 1 and 250,000 being a Tier 3. (*Please note: you may see Graft call their nodes “supernodes”. In this case, a supernode is no different than a masternode other than it may have more tokens than a masternode however Graft has chose to call all their masternodes supernodes).
The next component for setting up and hosting a masternode would be a VPS, dedicated IP address and the technical know how to setup and manage your masternode. In addition to the setup process of a masternode being a bit complex it is also very important to have the technical know how and ability to know when your masternode stops running due to the VPS stalling or from a connect loss as well as knowing how to kick start the masternode back up in the quickest possible time so you will not continue losing money from the masternode down time. Some masternodes have a required maximum connection loss time. This means that if you are hosting a masternode on your VPS you need to get the masternode back up and running within 1 hour or you may lose your ability to host and earn from that masternode. This is another important reason why it’s crucial to have the technical know-how to operate a masternode.
While masternodes can be a very profitable form of passive income, technical wise it just is not for everyone. That is why there is a platform called StakeCube that allows users to not only run and earn passive income from a masternode without any technical know how but they also allow its users to earn passive income without having the total amount of coins required for running a masternode.
With StakeCube you can earn from a series of popular and profitable masternodes with just a fraction of the required coins needed to be held in a wallet to be able to run a masternode. They have created “masternode pools” similar to what a mining pool would be. With mining, you can either solo mine or join a mining pool. Up until now, there weren’t any chooses for running a masternode without having the minimum required amount of coins. With “masternode pooling” you can now add masternodes as a means of generating passive income to your income portfolio.
I suggest opening up a free account so you can get a feel for the platform as well as see what masternodes are available for you to begin earning with their masternode pools. You may always have some of these coins in your wallet just sitting there. Now you can begin monetizing those existing coins instead of them just sitting there or you can buy some to enter any of the pools you like. You will also move up a level when you make your first deposit which makes you eligible to receive all of the airdrops on the platform. All you need is to deposit a small amount of any of the masternode coins on the platform. Coins such as ReddCoin, DeviantCoin, Bitcoin Green, etc. You can get 5 Bitcoin Green on CoinExchange.io for under $10 just to move to level 3.
Register here to open a StakeCube account and begin earning
BELOW YOU WILL FIND A SHORT LIST OF COINS YOU CAN PURCHASE TO EARN WITH ON STAKECUBE:
Deviant
Bitcoin Green
Logis Coin
Bean Cash
Crop Coin
Linda Coin
Zest Coin
Vsync
LightPay Coin
APRCoin
DraftCoin
Bitrewards
-add a bunch more! Plenty of small cap coins & tokens to build up your STAKECUBE account with!
YOU CAN ALSO VOTE FOR NEW COINS SUCH AS PIVX, WAVES & MANY MORE!
AFTER YOU CREATED AN ACCOUNT & VERIFIED DON’T FORGET TO CLAIM YOUR DAILY FREE COINS!
HOW TO CLAIM FREE COINS ON STAKECUBE?
STEP1: Register for a StakeCube account here
STEP 2: Once you registered for an account make sure to verify your email.
STEP 3: Once you have registered & verified your new account, login into your new account go to Menu >> Faucet
STEP 4: You will see a list of coins with a “CLAIM” button under each coin. Click the “CLAIM” button under each coin to get your free coins.
STEP 5: Log in every 24 hours & perform “STEP 4” for free coins daily!
Register for a StakeCube account here!
BONUS PASSIVE INCOME OPPORTUNITIES BELOW
THANK YOU TO EVERYONE WHO UPVOTED & COMMENTED! FOLLOW @telegramairdrops FOR MORE FREE TOKENS & PASSIVE INCOME OPPORTUNITIES!
I’ve been on Stake Cube for a month or so now. Very cool platform with an excellent community behind it. I’ll be posting an update video soon as well.
Project looks promising, I will join soon.
Interesting!
Be careful, if the coin price drop you will lose money, even you get some interest from the masternodes.
An alternative/additional one to try is StakeUnited.com. Nice dashboard developments and different range of coins. I invested with PIVX here and so far all good.
I also have a StakeUnited.com account but it’s nowhere as good as StakeCube. StakeCube is way better, has better coins to stake as well as better masternodes. Plus they have free faucets to get free coins every 24 hours, sweepstakes and airdrops too. It’s way better than StakeUnited and I am not just saying that because this is my Steemit post. If StakeUnited was any better I would have posted about them instead but they aren’t so I didn’t. Nothing personal against your comment. StakeCube also has PIVX and Dash.
ok thanks @telegramairdops I will give stakecube a look in that case.
not bad...
but it's risky!
Well every crypto is risky however staking and masternodes are safer income generators than just solely relying on a coin or tokens price.
Interesting concept, i'm going to keep an eye out for stakecube. Keep up the great content
No problem and if you have any questions feel free to let me know. I have been doing well with Stakescube and I recommend it for anyone who either does not have either the technical know how to setup a masternode or who doesn’t want to get the typical amount of tokens needed for a full masternode. For example, to earn with a full Dash masternode you would need 1000 Dash coins. That’s a major investment for most but with StakeCube you can earn income via a Dash masternode with as little as .25 of 1 Dash Coin. That makes the barrier to entry extremely low for anyone interested in earning passive income via masternodes.
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lo mejor...
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Cool thanks
Hmm...looks like an interesting game to play...I might check it out sometime
Not a game...
This looks very cool.. i only worry about the coins being stolen or due to fraud.. i signed up to stakecube with your referral code and will maybe promote it if its good.. i really like POS coins.
What do you think of coinex here.. it's an exchange that runs on CET tokens and you hold on in the exchange and earn dividends - the profit comes from the trading fee's, they pay out 80% to token holders.
https://steemit.com/bitcoin/@jimbojones/coinex-exchange-pays-80-of-profits-to-token-holders-review-of-payment-system
This one has a good referral program, i am getting lots of free coins from this one :)
Hi Jimbo and thanks for your comment. I can not dispute your concern and potential worry about coins being stolen or fraud because I don’t own the company StakeCube. What I recommend is testing maybe 2 coins or even just 1. There is a limit to the amount of total masternode slots you can run based on your StakeCube account level. Most new accounts are either level 1 or 2 so check to see how many masternode slots you are able to run based on your account level and test a few slots and see how you like it. I wouldn’t recommend just diving right into the program with thousands of dollars worth of coins. Test 1 or 2 of the better coins and keep an eye on your staking percentage to make sure you are being paid the appropriate percentage. Not all coins on the platform will have available masternode slots to invest in so you should look at coins like LogisCoin, Deviant and Lightpaycoin which I think pay well.
staking coin is very good option to make passive income, however it requires lot of patience.I am ready for this , i want to start staking coins , but i dont know the procedure.kindly help
amazing oppurtunity to earn by staking , i will accumalate finance for this option, thank you for this update
Congratulations @telegramairdrops!
Your post was mentioned in the Steemit Hit Parade in the following category:
Very interesting project Thanks for sharing. I write about projects myself if you would like to check out my work and follow me.
Excellent and attractive iniciative, thanks for share!!