Are Masternodes Beneficial to Cryptocurrency Investors?November 13, 2019
Are Masternodes Beneficial to Cryptocurrency Investors?
In my last article I wrote about cryptocurrency “staking” and the benefits a crypto investor can achieve by staking one or more crypto tokens. It’s my opinion that, staking, if done correctly, is one of the easiest and most effective ways to earn additional income with your portfolio.
In this article, I want to continue to talk about another way to earn additional income or tokens in your portfolio. In addition to staking, an investor can also host a masternode and earn passive “income.” Let me give you a brief overview of what I mean.
What exactly is a masternode? According to Crypto Digest, “a node can simply be understood as a computer that plays a part in ensuring the integrity of a coin network. The crypto space is not only decentralized but also distributed; therefore it functions by several people running nodes from different parts of the world. That said, you require a full node to host a copy of the Blockchain (coin’s ledger) and thus support the network.
A masternode is a crypto full node (computer wallet) that supports the network by hosting an entire copy of the coin’s ledger in real time. In return, the masternode will receive crypto coins as a reward. It is a great alternative to mining. This passive income, over time, will increase in value as the token increases in price.
Masternodes are very useful for crypto investors because if you run a masternode you are incentivized. Consider it just like earning a monthly or weekly interest on your crypto holdings. Different cryptocurrencies have different incentive models through which a masternode operator can earn a monthly or weekly income. If you are invested in a cryptocurrency that allows you to run a masternode, you should definitely explore that option of earning. You should compare the percentage yield against the investment. In short, you should smartly calculate your “Return on Investment (ROI).
Perhaps after reading this article you might be interested in adding a masternode to your crypto portfolio. My advice to you is simple. Continue to gather more information about how to run a masternode. Read as many articles as you can on the subject. Once you feel you have a greater understanding about the complexities and the benefits of a masternode, you might find you want to invest in one!
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