If you are looking to make your investment in cryptocurrency then there are some amazing ways to earn money other than day trading and long-term holding of your digital currency. You already have mining, and you have found that work and tolls involved weren’t for you, is there any other option that you can try out? Whereas mining is a consensus way of choice for currencies, for stake currencies it’s often a masternode. Let us know in detail about it.
What’s a Masternode?
Whereas most of the cryptocurrencies make use of miners for confirming the transactions, still there is one more method. And cryptos used are known as the masternodes for doing this. The investor who is interested to run their masternodes should lock up some number of coins or tokens for doing so. It effectively offers them the stake in a network as well as gives them this privilege to participate in this concept.
People who opt to run node can be paid to do so. But, rate may differ between each currency, however, in some cases; it can be huge annual gain. It will be low as 5 percent or high percentages that can earn you three times of your investment yearly. Suppose you want to earn good income from your cryptocurrencies, it is one best way to do. Instead of doing these things, you can even invest in cryptocurrency- mycointainer.com in various other ways too. Some of them are like Crypto FDs, Crypto referral programs etc.
What’s needed to run masternode?
To run masternodes can be complicated than staking in the desktop client wallet. Whereas this process is quite similar, and in many cases you require dedicated resources to do this process without any hassle. This generally means you have to buy VPS to run the node.
Most of the virtual servers run making use of Linux OS, and in case you aren’t much familiar with this then you have to learn to get started. The installation processes are generally lacking in GUI, so you will be needed to use the command line ways to install the staking wallet as well as manage this on the VPS.
Luckily, cost to do this isn’t substantial. But, in a lot of cases, you may get enough of hosting for below $5 every month. Most of the currencies suggest your VPS package provides 1 GB RAM, and this requires the dedicated IP address that you want to run.
Also, you can run many on these same VPS, only thing, they should have their IP address. Majority of the hosts may allow you buy extra IP addresses for the additional fee, thus there is not any problem at all.
How are masternodes different from other crypto assets?
This kind of passive income will be different than mining cryptocurrencies. Energy essential to operate node is much lesser than other operating Bitcoin rigs. In addition, node operators require less hardware and, have the lower computing rates than the bitcoin miners. Also, staking crypto on own is very different than operating the masternode. Whereas you stake coins while running the masternode, you are providing extra services to network, beyond staking.
Operating node is one type of passive way to invest than the day trading. Thus, those that might not have time (emotional stamina) of participating in the day trades can prefer masternodes. Thus, masternodes offer the crypto savings account, which earns with time; still it is quite vulnerable to the market volatility. The node operators help to make sure network is optimally running, offer services to network, as well as get payouts for running and hosting various functions. Whereas subject to the crypto market fluctuations, node operators generally enjoy very less volatility than, day trading crypto due to long term potential of earning and normal payouts.
Function of node operators
The node operators are not just actively engaged in best interests of the crypto network, but they directly gain from the work in form of the block rewards. To run the masternodes, operators should ‘stake’ predetermined coin in the dedicated crypto wallet. The stake can be held wallet only if a person is running a masternode. Minimum stake is that – minimal need to participate. However, you also can stake more.
Thus, amount node operator should stake differ between hundreds of the masternode coins in operation. Block rewards periodicity also differs amongst various cryptocurrencies with the node programs.
This post was originally published on Crypto Journal