Importance of Masternodes

With the uprising interest toward Bitcoin and the upcoming digital currencies’ future, many enthusiasts are looking on how to establish frequent and stable profit in this new age. You can achieve that as miner, but to became one, you need to invest significant amount of money to assemble your mining gear, possess a good level of technical skills and dedicate some time. From then on you will need some time to retrieve your input investment and eventually afterwards to start collecting your real profit. Masternodes provide the opportunity to have this daily income without purchasing any mining equipment, we will explain how you can accomplish it, but first let’s clarify the meaning behind the Masternode conception and how it works in details.

What is a Masternode?

To explain it in the most comprehensive manner, we will start with Nodes and Fullnodes. Nodes are all the users in the network, who are able to send or receive transactions. Fullnodes are the users containing the whole blockchain on their hard-drive (HDD), helping the miners with the verification and authorization of the money-flow. And now the Masternodes (short version: MN), they are similar to Fullnodes because they also extract the entire chain on their HDD but in addition they have other privileges, which are different for each coin, depending on how the digital currency facilitates them. We will overview them later on.

To be Masternode, you must buy your way in or mine it, if you prefer. Usually to be one, you must possess certain amount of the chosen coin and invest it or “lock it away” for the time being. Basically, you need to deposit a sum as a guarantee that you will play your role as a pillar in the current network. As a Masternode you are allowed to participate in governance decisions and votes, you will be able to do instant transactions and to increase your privacy. Supporting the miners in their daily tasks by providing the blockchain, with which they operate and add new blocks, is your main job. All privileges come with responsibilities, that is the idea behind Masternodes.

Masternodes calculator – everything you need to know

Apart of the internal network benefits you will receive a monetary reward frequently. Depending again on the digital currency, it could be weekly, daily or even several times per day. What you get? Usually certain percentage of the block reward mined is dedicated to the Masternodes and on top of that you profit from the state of the coin if its market cap is going up. This is a way to have a passive, smart income without doing much. Profitability is constantly changing as everything else in the dynamic crypto world. To improve your knowledge and take better decisions, you can use our Masternode calculator, which will show you the top options based on their current market condition.

Variable parameters

Before you make any conclusions, let us help you understand how the calculator works. Obviously the first column shows the name of the coin and its logo. After that you see the existing number of Masternodes in the network, this factor is showing the stability of the blockchain and the number of people who decided to invest their money in the project. Most logically this is increasing the trustworthiness but at the same time is a sword with two edges, high number of Masternodes means that the block reward will be split between more people. The next column is showing the price equivalent of 1-coin in USD. Overview now the right side of the table and more specifically the needed Coins to start a MN and the overall price of it. You can calculate it on your own if you want, let us show you how. Take for instance that 1 unit is $1, if the needed number of units to start a Masternode are 10.000, means that you need to deposit $10 000 to set everything in motion. On the table you will be able to check what is the value of the coin in Bitcoins, and right next to it, the best exchange price and its provider`s name.

ROI – return of investment

Concentrate now because we will discuss the ROI (return of investment) factor which is, we believe, the most important one and it is a key point of taking the best decision. ROI presents the percentage equivalent of the time for which you will retrieve your investment. The calculation behind is really simple but the unstable market makes it difficult to understand. We truly believe that examples are the best way of explanation, so imagine that you purchase 100 coins “X” at the price of $100($1 per unit). Overnight the market prices raised to $2 and now the calculation: current value of the coins owned ($200) / the total cost for these coins ($100) = 200% ROI. Be aware, this rate is constantly changing according to the market state. The calculator is showing two scales, “ROI days” column is showing approximately in how many days eventually you will retrieve the investment and “Yearly ROI” is presenting the percentage of the invested amount which you will get for 1 whole year. Pay attention to the ROI (return on investment) section, if the percentage there is going beyond 100%, proceed with cautious, it could be a scam. More than 100% doesn’t mean a scam for sure, pay attention because this parameter is formed based on the coin’s days after releasement and the number of nodes, which means for freshly launched coins the criteria might be unreasonably high.

Prognoses

We know it is quite hard to make prognoses and calculations for the future, that why we designed the calculator to do it instead. You can see the sections at the right side of the table with average estimation of the eventual daily, weekly, monthly or yearly profit. They are showing rough turnover that you can expect for a certain time frame if the market keeps its values the same for the whole period, which is impossible. It is best to observe the pointed network for about some time, to read and get familiar with its conception and their goals, to investigate for feedback of existing nodes. Collecting information and studying the coin market pattern will help you take the right decision.

Minimum requirements

From a technical point of view, you will need a server and a private IP address, to download the blockchain (up to 200GBP) and to support the network 24/7 from then on. Either way, you can assemble it or rent one with VPS (virtual private server) which will cost you round-bound $5-10 per month. The second option is preferable because it will save you electricity expenses and other side struggles.

Examination

We decided to take a closer look and examine some of the most popular Masternode conceptions. Also, we will show you shortly which is the main criteria to follow while you are scouting the web for new opportunities.

Dash

Dash (DASH) is maybe the brightest example. On their website you can find full explanation but here we will quickly summarize it.

The buy in: To initiate Masternode you need to have 1000DASH, when the price of 1DASH now is approximately $200, that is equal to around $200 000 investment to start with. Not long ago, at the beginning of this year, Dash reached its peak of $1500 per unit, you can calculate the rest.

Privileges: InstantSent (Instant transactions) and PrivateSent (Anonymous transactions) on top of those two you will be able to take advantage of the Dash payment processor called “Dash Evolution” which is similar to PayPal as functions. You will have the opportunity to express your opinion and take participation in votes and development decisions in the community.

Reward: Indeed, 45% of the block reward is split between the Masternodes, which is coming to around 6-7Dashes per month. Calculated for on yearly basis that’s around $15 000 profit.

Conclusion: Good profitability, strong market reputation is what makes Dash a good fit but unfortunately is no longer available for the common users because of the high investment value needed to start. But if you are willing to start, now is the time, while the price for 1 coin is still low.

PIVX

PivX (PIV) stands for Private Instant Verified Transaction and it's another project with strong Masternode conception. The project aims to be the fastest, private and global currency.

The buy in: You need to stake 10 000PIV which at the current price is coming to approximately $8 000

Privileges: Instant transactions with increased privacy factor is something typical for every coin and its Masternodes. You will be part of decentralized governance with the options to vote and suggest improvements or changes.

Reward: At this current point the rewards are given every 15-16 hours. The total amount split between all Masternodes is 3 638PIV which is around $74 per month or $911 per year.

Conclusion: Not the most profitable one but definitely more accessible since the starting investment comes to less than $10 000. The project has its popularity already, in perspective they are looking to expand more which could deliver significant price raise and you can win a small fortune.

Blocknet

Blocknet (BLOCK) appears to be decentralized exchange based on blockchain technology, facilitating transactions of tokens.

The buy in: The needed BLOCKs are 5000 which is equal to around $18 000 starting investment to become a Masternode.

Reward: Based on the current state of the market the turnover per month is coming to around $241 or per year $3 000. The rewards(989BLOCK) for each new block mined are distributed every 7 hours and 30 minutes.

Conclusion: Blocknet deserves attention because in the last year they had several ups and downs, so anything is expected. As an idea it has its relevance and practical future, we consider it as a good project which could see bright future

ZCoin

Zcoin (XZC) is one very successful project made reality by 2 students, it entirely based on Bitcoin blockchain. It became very popular as the anonymous coin, you can spend money without having transaction history.

The buy in: 1000 XZC are required to start your own Masternode, the equivalent in fiat money is a bit less than $10 000

Reward: The difference here is that the reward frequency is around 27 days. The prize split between the nodes per mined block is 2 025XZC, the rough estimation for a month is $152, for a year $1 851

Conclusion: Considering the lower price of the coin for the last 6 months, we can definitely say that it is the right time to invest, if another peak comes this winter you may make a small fortune. Another factor is the reputation and networks stability, there are around 4 000 existing Masternodes and the coin is well-known by the crypto users. The coin stands on the market for about 2 years already, so we can assume that its reliable.

SmartCash

SmartCash (SMART) emphasize on the privacy factor and quick transactions but the goal is to achieve merchant adoption. As characteristics are very similar to DASH but with one major difference, SMART is striving to keep strong decentralization by implementing number of decentralized governance and invest most in the features pointed by the community.

The buy in: Owning 10 000SMART will give you the right to be Masternode, the monetary reflection in fiat currency is $269.

Reward: With SmartCash the reward of 24 700SMART is divided equally between all MN`s every 9 days. The approximate profit for 30 days is coming to $1.4, for a year $17.

Conclusion: Obviously with this current market state you won’t get rich immediately. The truth is that compared with other coins, your “way in” investment is insignificant. If we look from time-line perspective, in the beginning of this year the price of SmartCash reached almost $2. Let’s imagine it and make the simple math, you will buy your Masternode for $270 and you will sell it at $20 000, this is pretty much a bit less than 1000 times more. If you are looking for cheap and affordable Masternode with proper reputation, we strongly recommend SMART.

Conclusion

To be a Masternode is not only an investment, it is responsibility to act in days of need, to take decisions and participate in the blockchain governance. Also, it means to believe in the conception behind the chosen coin and inspire others to follow your example, don’t forget increasing the market cap price also delivers profit for you. The crypto world is dynamic and fast-changing ambience, to protect yourself from scams and misleading information you should invest some personal time to evaluate and go through many possible sources to double confirm your knowledge. If you need assistance you can always check our website for news and features.