Introduction to Masternodes
Best-Crypto.io officialy launched it’s Masternode section ! This world may be complex for begginers , but Masternodes can be great investment opportunities , that’s why we wrote a quick introduction to them.
What are Masternodes ?
A masternode is a server which is used in a network to secure and verify certain actions specific to some cryptocurrencies. It can be used to make instant or private transactions , and in some case , Masternodes are used as a Governance system : A system in which investors are able to vote to decide the coin developement and marketing guidelines. The masternodes are launched and managed by the users of the network , that’s why they have to get a reward for this service. Those rewards are most of the time equally and regulary provided to users. The amount varies depending on the coin and can be very interesting. Since the masternode reward program has a fixed percentage and the masternode network is fluctuating, the reward for masternodes will vary depending on the number of active masternodes. Masternodes coins are often derived from DASH coins , the original coin which use Masternode system.
What are the requirements to run a MN ?
To setup a Masternode , you’ll need to provide a 24/7 server to secure the network . That’s why you’ll need to rent a VPS (Virtual Private Server) , they’ll run continiously to secure the network and earn rewards. Masternodes also requires a minimum ammount of coins , the ammounts varies depending of the coin but remember that in most case , it will be a consequent investment. Each Masternode coin will provide you tutorial to setup your Masternode and in most case , the community will be very friendly and will help you with your Setup !
How to pick the perfect masternode
There is a lot of masternode and it can be difficult for a novice to choose the best project. We established a criter list to rank masternode :
· ROI / Price
This is going to be the main argument for most of you ! But beware ! If it sounds too good to be true then it isn’t. ROI means « Returns on Investment » on listing websites , its often a percentage or a number of days , this will be the current number of days required to payback your MN. For exemple :
- A ROI of 100% will payback your initial investment in 1 year
- A ROI of 477% will payback your initial investment in 77 days
- The price and required coins are also important because keep in mind that masternode may be risky investment since most of them have low marketcap.
· Liquidity
Liquidity is also very a very important factor to consider. Earning rewards is good , but being able to sell them is even better ! Check the volume and order book carefully.
· Quality of the socials media / website
The quality of social networks and the website is a good indicator to check the seriousness and skills of the team, although this is not essential, it is still the basis of communication team structure
· Roadmap and project development
And finally, last but not least, the project and the roadmap. You have to know one thing, a lot of Masternode are just useless clones of Dash. The price of these projects is only speculative and is not based on anything. Take the time to educate yourself and choose a project that has plans for the future.
Best-Crypto.io will list and promote promising Masternode coins ! You can use our tool to pick the perfect Masternode and passively multiply your incomes ! For example we’re currently listing MotileCoin , a project which will allow it’s users to refill prepaid card with their crypto-currencies.
