How to invest in Masternodes: Part 2

INDX Capital
INDX Capital
Published in
2 min readMay 30, 2019

Masternodes are a significant improvement in blockchain infrastructure, offering stable validators to secure a network and incentivising operators to act in the interests of the chain. These incentives make them an attractive option for investors wishing to diversify their portfolios with assets with a guaranteed return. However, setting up and maintaining Masternodes can present significant hurdles to overcome as we outlined in the Part 1 of this series.

INDX is offering a simplified Masternode experience for investors, benefitting both token holders and Masternodes communities themselves.

1. Knowledge

Masternodes require an advanced level of technical knowledge to set up and maintain. INDX’s team of Dev Ops and Secos have built a custom platform which allows them to spin up any number of Masternodes and securely collect the rewards.

2. Variety

There are currently estimated to be 250,000 Masternodes operating across 600 networks, a number that looks set to double during the course of 2019. This makes it very difficult for investors to do proper due diligence on the available opportunities. INDX’s proprietary algorithm scans the Masternode market and assembles an optimum portfolio of Masternodes to implement. Its results are then ratified by a panel of traditional and crypto market experts. Investors gain exposure to the fund by purchasing the INDX Token and receive a quarterly payout from the profits.

3. Cost

The third challenge for the Masternode sector is the setup cost. This varies from network to network, but for the highest profile projects, it can cost over USD150,000 to stake. The INDX Token grants investors access to the rewards from a diverse portfolio of Masternode projects, eliminating the setup costs but still profiting from the rewards.

4. Uncertainty

Blockchain and its associated digital assets have gained popularity as an exciting new asset class but it is a highly reflexive market prone to panic and flash-crashes. INDX was founded during the 2017 bull market and experienced the 2018 downturn in full. This was a perfect opportunity to experience a protracted bear market and feed that data to the algorithm. The HODL meme works fine when the market is going up but it quickly evaporates when conditions move in the other direction. Masternodes are HODL positions so it was imperative that a hedging strategy be developed.

Hedging dramatically reduces the risk that the INDX portfolio will be damaged by unexpected lurches in the market. This protects INDX from a downturn and allows us to capture all the profit in a bull run by having capital on hand to buy undervalued assets.

Our security token offering starts on June 1st. We believe it is a unique opportunity for investors to gain exposure to managed positions in the Masternode sector, enjoy passive returns and diversify their portfolios, fuss free. INDX is making it simple to invest in the Masternode sector. We want to ensure that everyone can benefit from the digital economy by reducing uncertainty, risk, energy consumption and wasted time. To learn more about INDX, go tohttps://www.indx.capital/

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INDX Capital
INDX Capital

INDX Group Ltd is an innovative creator of decentralised financial (DeFi) solutions for a new tokenized world.