There are more ways to earn money with cryptocurrencies than just buying coins and hoping they go up in value. There’s also mining coins, which people can participate in for relatively low investment by joining a mining pool.
Some coins that are based on Proof-of-Stake allow you to participate in validating transactions by committing a certain amount of coins, and will pay out rewards. This kind of system is often referred to as “staking” and can often be as simple as placing tokens in a compatible wallet.
And then there are masternodes. A masternode is essentially a form of staking, but involves a little more commitment and set up. Instead of just having a wallet, you need to have a computer that you can dedicate as a kind of server for the purpose, which needs to be connected to the internet all day, every day.
Once you have a server set up, and you’ve installed the masternode application, then just like staking, you need to commit an amount of coins above a minimum specified by the token’s protocols.
The main benefit of a masternode over simple staking is that a masternode is always involved in helping validate transactions on the blockchain, and is constantly paying out for that contribution. This means that income is a more consistent stream, which has obvious appeal.
However, masternodes all require significantly more money staked, and more hardware and setup than simple staking, so it is an activity suited to those who are a little more technically-savvy and committed to the task. Services exist to do the hard work for you, but of course, they will take a cut of the return, which may make the overall ROI less worthwhile. Just as significantly, there is very little oversight of such services, so if you want to go that way, take extra care to research the services you are considering.
If you have some spare computing power, you might want to put it to work with these 5 masternode coins and earn passive income!...