Masternodes – How To Earn Money Passively

Masternodes are certain nodes within the crypto network. They fulfill some important tasks in crypto currencies and at the same time offer a possibility to earn a passive income.

One of the most important tasks of crypto Masternodes is to download the complete blockchain as full nodes. They also verify new transactions and add new blocks to the blockchain. They ensure that Bitcoin and other crypto currencies can operate decentrally. With some crypto currencies, operating a master node is remunerated, and investing in a master node can generate a passive income.

Earning Money with Masternodes – You should pay Attention to that?

Depending on the blockchain, Masternodes can have many other functions, such as enabling certain types of transactions or allowing the owner to participate in democratic decisions.

It is possible to build up a passive income with a Masternode. For this, the crypto currency must use Proof-of-Service. Proof-of-Service combines the master nodes with other proofs of work, such as Proof-of-Work (Dash), Proof-of-Stake (PIVX), or a combination of both (like LuxCoin).

These are the processes that create new transactions and blocks. Proof of service is when master nodes are used to support this system and provide additional features.

These are the processes by which new transactions and blocks are created. Proof of service is when master nodes are used to support this system and enable additional features. Master nodes perform additional tasks for the block chain and hold the network together. In return, they are rewarded with the crypto currency whose blockchain they maintain.

Besides the Dash, PIVX and Luxcoin already mentioned there are Stratis, Blocknet and Zcoin, which use master nodes. In order to operate a master node, you usually have to make an investment in the respective crypto currency.

Masternode 2019 Revenues

The revenues of a master node depend to a large extent on three factors: How big is the Block Reward? How quickly are new blocks created? And what is the price of the crypto currency?

At Dash, master node operators receive 45% of all new dash coins. This means that these 45% will be distributed to all operators of a master node. Normally each operator receives 2 dash every 7 days. This may not sound like much, but you should keep in mind that a Dash Coin 2019 is worth several hundred USD.

If the prices are higher, it is especially worth it. If the prices fall, you should perhaps wait until you sell the Dash. Dash’s all-time high was $ 1,250, by the way.

Masternodes Benefits

• passive income
• minimum hardware requirements compared to mining
• relatively easy to configure

MasterNodes Disadvantages

• Income depends on crypto courses
• Investment in the crypto currency necessary
• Master Nodes are exposed to hacker attacks

What does a Masternode cost?

The Masternode is operated by a standard server. In contrast to PoW mining, no powerful hardware is required. The Node should run constantly and be connected to the Internet. The server should run with a dedicated IP address and should have VPS if necessary. A usable server starts at about 300 Euro, from then on the price goes up.

If you do not want to provide a server yourself, you can also pay a hoster for it. He then provides the hardware and takes care of the maintenance. It is important that enough storage space is available. The server must be able to download the entire blockchain, which can be several hundred gigabytes.

Apart from the hosting on a VPS for crypto masternodes, a certain amount of the crypto currency must be purchased in order to operate a master node. This pre-investment is necessary to protect the network against manipulation. How much this costs depends on the price of the crypto currency and the quantity required. For dash, that would be 1,000 dash coins, which can be quite expensive.

Masternode Pools

Pools have long been a common method of reducing costs in mining. In a pool, several miners join together to mine faster and more efficiently. This method also works for master nodes. This is what Masternode Pools are for.

With a masternode pool, investors all over the world, who cannot or do not want to afford a masternode on their own, pool their money in order to raise the required amount. The rewards from the Block Reward are then distributed among the participants of the pool. With a Managed Masternode Pool, participants get even more features.

With a Managed Masternode Pool, the operator takes care of the pools. Its tasks include hardware maintenance, managing the rented server, e.g. the execution of updates and protection against hacker attacks. The operator also helps to select the right coins. The pool participants invest in the pool and the operator then selects the best masternode crypto currencies.

If the exchange rate of this crypto currency falls, the operator changes the coin and the nodes. The Masternode Pool operator ensures that you earn a constant passive income and achieve a return. More than a one-time investment is not necessary.

The masternode pool provider GetNode offers an active management of its masternode. What is special about GetNode is that the company constantly adds new crypto currencies and nodes to the pool, which generate high returns in a short period of time. At the same time, the company invests in a solid foundation in order to get good revenues even on bad days. A deposit is possible from 0.25 BTC or at least $ 1,000.