When it comes to making your cryptocurrency investments there are certainly more ways to make money besides day trading or even long-term holding. If you’ve explored mining, and you’ve found that the equipment and work involved were not for you, then there is another option.
While mining is the consensus method of choice for proof of work currencies, for proof of stake currencies it is often the masternode.
While many cryptocurrencies use miners to confirm their transactions, there is yet another method. Some cryptos utilize what are known as masternodes to do this. An investor interested in running their own masternodes must lock up a certain number of tokens or coins to do so. This effectively gives them a stake in the network and allows them the privilege of participating.
Those who choose to run a node will be paid for doing so. The rate will vary between every currency, but in many cases, it is a substantial annual gain. This can be as low as 5% or even enormous percentages that could earn you two or three times your investment in a year’s time. If you’re looking to earn some income from cryptocurrencies, then this is a solid method with which to do so.
Running masternodes is a little more complicated than staking coins in a desktop client wallet. While the process is similar, in most cases you will need dedicated resources in order to do so. This usually means that you will need to purchase a VPS in order to run your node.
Many of these virtual private servers also run using Linux based operating systems, and if you are not yet familiar with them you will need to learn before getting started. Installation procedures usually are lacking in a GUI, and you’ll be required to use command line methods to install your staking wallet and manage it on your VPS.
Fortunately, the cost for doing this is not substantial. In many cases, you can acquire adequate hosting for as low as $5 per month. Most currencies recommend that your VPS package offers at least 1GB of RAM, and it will need to have a dedicated IP address for every one that you wish to run.
You can run multiples of these on the same VPS in many cases, but they must all have their own IP address. Most hosts will allow you to purchase additional IP addresses for an additional fee, so this is no problem.
Since there is a real monthly cost associated with running your node you will need to make sure that the amount of coins that you earn will be worth this expense. In most cases, this will not be difficult. Unless of course, you choose a node that does not pay very well. There are many resources available that will give you this information before investing, and you should utilize them before coming to a decision.
You should, however, keep in mind that sites that aggregate this data are not totally accurate, and their information may not be up to date. You should always verify with other holders on social media as to their actual return numbers before proceeding with an investment.
When choosing a coin that you would like to use for this purpose you should look for a balance. The return of different nodes varies wildly, and there are some outrageously well-paying ones out there. However, you should keep in mind that this is not always a good thing. Sometimes having an asset that pays too well can actually hurt you.
This is because if there are too many new assets being minted that they will inevitably end up on exchanges for sale. This causes massive amounts of sell pressure, and it can push down the value of your investment. This can make it very difficult for your currency to gain or even maintain value, and you should be wary of it.
It’s also not the best idea to choose an asset that is paying a low percentage. In many cases, these assets will be prohibitively expensive or not really worth the return. It’s best to choose an asset which strikes up a nice balance that will net you a decent return without flooding the market with useless currency.
If you need a little help in choosing your masternodes, then this list can provide some suggestions. However, you should keep in mind that cryptocurrency returns and viability change very quickly. You should make sure to take the time to verify that these investments are right for your particular situation.
Prices have not been included because that amount will change on a daily basis. Instead, we have provided the number of coins required for the masternodes and the estimated annual percentage return.
You can then use these figures to calculated an updated estimate on how much it will cost for you to acquire the node and what kind of return you can be anticipated by running it. These metrics provide more reliable information over the long term.
These assets are generally cheap to acquire and they provide investors with a large number of stakes. They may not be the most stable, however, and you should be cautious investing here.
Many of these are extremely low cap assets. Some of them may actually produce a large number of assets, but this could adversely affect the price of your masternode due to how many are being consistently produced.
This is a high return asset that’s available for a very attractive price. If you don’t mind investing in a cheap but potentially highly volatile asset then this node can earn you a return of as much as 3000% annually. You’ll need just 5,000 coins to get started here. While it’s certainly a risk investing in something like this, the investment required is pretty low anyway.
This lesser-known asset will earn you somewhere around 340% for investors willing to take a risk on a lesser known coin. You’ll need 10,000 coins to get started here, which is more than usual, but not expensive considering the price of the asset itself.
These assets typically provide a good balance between return and price to acquire. Choosing a masternode in this price bracket is likely a good option as it provides a good mix between risk and reward.
Many times the projects in this range are more established and they can provide a decent monthly income for investors who choose to run these masternodes. They produce a nice return without flooding the market with new coins, dropping the price of your node.
This node offers a particularly attractive annual percentage and is cheaper to acquire than many other similar nodes. Investors will require 3,000 coins to run a masternode, and they can expect to earn a whopping 136% for running a node on this network.
This node is a little harder to calculate because investors will actually get a percentage of the block reward from the network transactions that pass through Smart Cash’s insta pay system. If you’re interested in cashing in on potential transaction growth, then this is a way to do it.
A node of this type benefits by the fact that your percentage will grow with the network instead of being a set percentage. You’ll need 10,000 coins for this node. This is a pretty nice, low-cost introduction if you’re interested in owning masternodes.
Investors interested in this masternode can expect to earn around 197% annually on their investment. Only 5,000 coins are required for this node, making it an attractive option for those looking to pick up a reliable cryptocurrency who don’t have enough to invest in one of the more expensive options.
These masternodes usually have the highest price assets but the lowest rates. Many of these nodes will be prohibitively expensive to most new investors, but if you have a substantial amount to invest and you’re looking for something that can hold its value more reliably, then this is likely the way to go. Be prepared to have a very large bankroll to invest in any of these nodes.
This is one of the most popular assets, and it commands the highest price. You’ll need 1,000 coins to create a node here, and it will earn you approximately 7% annually on your investment.
This is a very old cryptocurrency with a very low supply. It has a dedicated community, and the returns remain low to preserve its value. 10,000 coins are required to create a masternode, and investors can expect to earn approximately 7% annually here.
This node belongs to a privacy-focused cryptocurrency. Investors will need 10,000 coins to run this particular node, and they can expect an annual rate of around 7%.