DeutschEarning a lot of money in no time at all, in addition to pure enthusiasm for innovation, is probably the main motivation for so many people to get involved with the blockchain and cryptocurrencies. Promises of high returns with little effort are often made, and in fact, with the necessary initial capital, almost anyone could dive into the crypto world.
Masternodes are considered a particularly profitable alternative to classic mining. Basically, these are servers on which the entire blockchain is stored and which have the task of verifying transactions and blocks. The largest possible number of masternodes is the basic requirement for the decentralization of a network, and so hosts of a masternode can actively contribute to the security of the corresponding network.
How Can You Earn Money with Masternodes?
The task of the node host is therefore a highly honorable one for many. When it comes specifically to Bitcoins, it is also a kind of voluntary service – there is no remuneration for this. It’s different with many other platforms: here, operators of masternodes are involved in the profits generated by the miners.
This is the case with DASH, for example. A large part of the DASH generated during mining is distributed among the individual masternodes. In the past, this could have been a few thousand francs per month – with little effort.
Requirements for Operating a Masternode
Anyone who is now considering operating a masternode and thus generating passive income with their contribution to the decentralization of the network must first meet a few basic requirements:
- Sufficient capital: Depending on the platform, masternode operators must own a defined minimum number of coins. In the past, depending on the coin and exchange rate, this could have been values ranging from less than a hundred to several hundred thousand francs.
- Basics: A fixed IP address, a node address and a wallet are mandatory.
- Reliable technology: A server and a connection to the network that is available around the clock are absolutely necessary. It also needs enough storage space on the blockchain.
But even those who cannot or do not want to raise the very high initial capital have the opportunity to participate in masternodes. So you can also only acquire part of such a node, which reduces the initial hurdle. However, you will then only be involved in the mining profits for your corresponding share.
The amount of the initial investment varies depending on the cryptocurrency and the current exchange rate. Interested parties can obtain further information on the required capital on the masternodes.online platform.
Passive Income – just on the Side?
Achieving a solid second income with a masternode and without much effort sounds tempting. But it’s not that easy. First and foremost, it must be checked whether the investment can really pay off: Is a value increase to be expected for the cryptocurrency in question? How high is the annual Return of Investment (ROI), how long will it take for the initial investment to pay off through the income?
These calculations must also take into account the running costs, which arise, for example, for the web hosting of the server and its electricity consumption. The longer the refinancing of the initial investment is expected to take, the more important a stable exchange rate is – and that is anything but a matter of course in the crypto world. Therefore, you should also be suspicious of ROI promises that are too high and too tempting. A value between 5% and a maximum of 25% is realistic; but that doesn’t mean that it is a reliable investment. The lack of security is one reason why masternodes are not suitable as a safe investment for retirement provision.
Interested parties should find out exactly about the various projects with masternodes and weigh up the benefits and risks. If a serious project is found and all the basic requirements are met, it is actually possible to generate a regular passive income by operating a masternode.
