Masternode — How It Benefits Crypto Investors
--
What Is A Masternode?
A masternode (MN) is a cryptocurrency wallet. Specifically, it is a full node computer wallet that offers a number of advanced features and advantages not available with other cryptocurrency wallets.
Technically speaking, masternodes are a series of virtual private and secured servers or bonded validated systems. They control a cluster (block of nodes) within a blockchain’s network.
An investor in a masternode can pick options such as direct send, instant send and private send.
Considering the high level functions, an investor will need to make a significant investment to operate MNs.
Once invested, you should earn passive and significant rewards. You will earn a % of the reward on a routine basis for every block. When you invest in a masternode prior to a coin’s launch, you should anticipate large earnings.
Examples of Coins That Use Masternodes
Dash, PIVX, Beta, Diamond, Terra Coin, Neutron, iCash, BitSend, Block, BosCoin, and ChainCoin are just some example of coins that support a masternode wallet.
What Do Masternodes Do?
Masternodes –
- Increase the privacy of transactions
- Help carry out instant transactions
- Allow for voting on proposals to improve the coins
- Enable a treasury system in the cryptocurrency markeet
The function of a masternode depends on the crypto-coin and how they have been implemented in the network.
Investing In Masternodes
Masternodes are far more than just a way to invest in cryptocurrency. They are utilized to determine when to boost the value of a coin thus increasing its significance in the crypto market.
A MN is a masterstroke for a wise crypto-coin investor.
As an investor, you can up-vote a proposal to improve your coin. You can also reduce the supply of coins in circulation. Why? To increase the demand for the coin which results in an increase in your rewards.
Basic Requirements For Masternode Investing
Entry Barrier
– Anyone with the minimum amount of coins required can own a Masternode. Note that different coins require different entry barriers.
– To own a Dash’s masternode, you need to buy and hold 1000 Dash, which is equivalent to approximately $364,452.00
– To secure a PIVX network masternode, the entry is 10,000 PIVX or roughly $44,956.30.
The reason for an entry barrier for a masternnode is to reduce, or eliminate, manipulation of the market. If an investor is involved in cheating, there are provisions that include monetary punishment to include the devaluation of his holdings.
Server
– You will need a VPS, Virtual Private Server, with almost zero downtime. Your server needs to run 24 x 7 x 365.
That means that you will have to hire the best virtual server hosting service in your location.
Dedicated IP Address
– Along with a dedicated server, you will need a dedicated IP. Your IP will be your technical identity in the network where you invest.
Dedicated Server Space
– To save the blockchain when invested in a masternode, you will require a dedicated and secured space on the server.
– You can directly speak to a hosting provider to be sure that you have all the pre-requisites for a masternode investment.
– Alternatively, you can hire a third party masternode operator who has the infrastructure already in place. He will represent you in managing your masternode in exchange for a % of your earnings.
Benefits of Masternodes for Crypto-Coin Investors
Great Profits
– If you invest in a masternode before the coin is launched, you are going to earn passive and significant income.
– Additionally, you earn daily, weekly or monthly rewards on your holding in the network. You will continuously earn these rewards while you are invested in the Masternode.
Vote On Improvement Proposals
– Investing in masternodes allows you to vote for improvement proposals on the coin. That will certainly work in your favor.
– The more investors mean higher vote counts and better earnings!
Increase the Demand
– A masternode investment also gives you the opportunity to strategically increase the demand of the coin by taking out a certain amount of coins from the total supply.
– Higher demand = Higher earnings
Honest Operator
– A masternode investment has a high entry barrier with a strict punishment policy to minimize manipulation or cheating in the trade.
Now you know the upsides of investing in masternodes.
Before you get started, do some serious research before you choose the currency to invest in.
Lastly, be sure you calculate the ROI in order to maximize your potential returns.
Contact Krohn Media For ICO Digital Marketing Services
Source: Krohn Media
