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Masternodes Yield Passive Incomes

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February 8, 2018 | 

Joanna Newman |  0 Comments| 

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“To become rich, you need to find a way to make money, even while you’re asleep.” – David Bailey

Far from apologetic, this quote invites us to question the investments that we make. In the world of crypto-finance, there are several ways to make money during both daytime and nighttime. Cryptocurrency investors can choose to use smart contracts, POS (proof of stacking) or they can choose to use masternodes. The latter being the most profitable of the three.

Just as the returns differ from cryptocurrency to cryptocurrency, their structures are also different from each other. Not all cryptocurrencies use masternodes in the architecture of their Blockchain. And, often, it is the cryptocurrencies that offer anonymous services that use them.

What Exactly is a Masternode?


Masternodes are servers within a cryptocurrency’s Blockchain that control and regulate all transactions between users and offer protection to both parties.

They are the ones who process the information quickly and anonymously. Notably, masternodes control the blocks that are created by miners and have the power to destroy any they find to be defective.

To be able to benefit from a masternode, a computer must be a dedicated server, or VPS. They must also possess a certain number of tokens in their portfolio and be continuously connected to the network.

https://www.youtube.com/watch?v=UbPIlDp74_8

It’s important that we distinguish the difference between masternodes and POS (proof of staking) because the return for a masternode is significantly higher than the average portfolio. Cryptocurrencies like the ARK or NEO are essentially based on staking and don’t require masternodes or a permanent connection to be able to gain a profit.

They way that a masternode gains a profit is by checking and validating the block of the chain. Another important thing to note is that when there are less masternodes involved, a network will be more the service.

Running a masternode is becoming increasingly difficult these days. This is related to the price of cryptocurrency reaching exorbitant highs these days. However, this doesn’t stop investors from trying because of its high profitability.

Here are a few cryptocurrencies that have masternodes integrated into their Blockchains.

  •         Dash (DASH)

  •         ChainCoin (CHC)

  •         Stratis (STRAT)

  •         Block (BLOCK)

  •         Bata (BTA)

  •         Crown (CRW)

  •         Diamond (DMD)

  •         ION (ION)

  •         Monetary Unit (MUE)

  •         Neutron (NTRN)

  •         PIVX (PIVX)

  •         Vcash (XVC)

  •         XtraBytes (XBY)


For the purposes of illustration, we are going to take a deeper look at the biggest of them in terms of the top 15 market caps.

Dash: The Ruler of Masters


The Dash is one of the most popular cryptocurrencies that use masternodes. And, thanks to its private transfer feature, Dash has become world famous on the Darknet.



Dash’s masternodes make decisions about its blocks by using a democratic voting system.

To be a masternode, a user must possess at least 1,000 Dash tokens in your portfolio, which is equivalent to about $582 USD according to today’s prices. This isn’t a lot of money, especially compared to when Dash was trading at $1180 USD, and you needed 1,180,000 tokens to be a masternode.

Currently, Dash uses a network of about 4759 masternodes that have an annual return rate of about 7.5%. Today a Dash masternodes pays out about 0.2054 Dash per day, which equals $831 USD per week.

It’s important to note that these figures are in constant fluctuation. From day to day, a masternode might pay a little more or a little less, just as any investment might earn more today than it will tomorrow.

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