Masternode hosting – Making money together in a shared masternode pool
Masternode hosting – Making money together in a shared masternode pool
A few years ago, I had hit a dead end in my investments. The lack of investment opportunities and people who could help me with them was very frustrating for me. From my youth I had known almost only about savings accounts, superannuation fonts and life insurance. But somehow, I had the feeling that our Fiat financial system was becoming more and more lethargic and unprofitable. In some way, I wasn’t getting anywhere. On the contrary, in the course of my real estate financing I got the feeling that only one person or institution really benefits, namely the banks and I am left out of the picture in the long run. Finally, in my quest for financial enlightenment, I stumbled up cryptocurrencies. In particular, I found the topic of masternodes very exciting right away. It wasn’t easy for me to get started here and I made some mistakes that would not happen to me today if I got to start over. In order to spare others the same mistakes, I am writing this post. Like stock trading, it is also important with cryptocurrencies to build a diversified portfolio that is crisis-secure and long-term. If you are interested in the topic and you also want to escape from the negative interest swamp, it is worth reading this article, because I will show you a way to expand your portfolio easily and without spending a lot of your valuable time, even if you have not yet had any dealings with cryptocurrencies. How is that possible you ask? With a masternode pool!
Reading time approximately 10 minutes.
The article is written in two parts:
If the details in Part 1 are too complex to start with, you can always jump to Part 2, which is easier for newcomers to understand and just come back later to delve into the details. For the sake of being thorough, I have to talk about it all though.😊
As the name suggests, a cryptocurrency is an encrypted transaction option that is traceable worldwide and cannot be manipulated. This is made possible by the fact that the blockchain of a respective coin network is stored and networked on a wide variety of servers worldwide. A so-called decentralized network. All of these servers can verify transactions and, depending on the type of coin, also stake (proof of stake) or mine using computing power (proof of work). In the case of most cryptocurrencies, however, these servers are not directly connected to one another, but rather converge at first in larger nodes which, to put it somewhat simply, then form a consensus with one another. These nodes are called masternodes. Just like all other smaller nodes, these have the option of verifying transactions, but depending on the platform they receive other, higher-level authorizations, for example governance options or instant transaction options. The tasks and rights of a masternode vary greatly, depending on the platform. Possible special rights of a masternode are:
- Anonymize transactions
- Instant transactions
- Right to vote in the network (governance)
- Monitoring the network.
Advantages of a masternode
As mentioned above, a masternode has more authorizations than a “normal” user of the network. In order to honor this larger area of responsibility and also the responsibility in the network, the operators of masternodes receive a fixed reward in some networks, usually in the form of a fixed number of coins per day. This value, given as “ROI” on many websites, is publicly available and usually only changes after halvings or other major changes in a network. The ROI of the largest paid masternode coin network “Dash” is currently around 9.9% per year. To operate a Dash Masternode you need 1000 DASH. This means that Dash Masternode operators receive around 8.1 DASH as remuneration every month (approx. 0.8%).
Difficulties in operating your own masternode
If we stick to the example of “DASH”, we can immediately see the biggest obstacle for private masternode operations. To have a masternode you need 1000 DASH Coins. A Dash currently costs about $ 212. This means that the acquisition cost of a “DASH Masternode” is around $ 212,000! Dash is the best known and therefore one of the most expensive masternode coins, but even the less known ones rarely have masternodes that can be obtained for less than 15,000 euros.
Assuming you have the necessary financial resources to buy a private masternode, this is only the beginning of the process. A masternode operator must be able to keep his masternode running on his own server, make regular updates and perform maintenance. This is certainly feasible with a little practice and know how, but not everyone has the time and the technical interest to acquire it.
Like all cryptocurrencies, masternode coins are also subject to greater fluctuations in value. In general, the higher the promised ROI, the greater the risk. It would make sense to distribute it in different masternode coins, but this is hardly feasible due to the high cost. The masternode pool is an alternative here.
Choosing the right coin
Anyone who decides to acquire their own masternode despite the hurdles mentioned is ultimately spoiled for choice when it comes to choosing the right coin. The greatest possible caution must be exercised here, because unfortunately there are also many fraudsters in this part of the crypto world. The chance of falling for a scam or buying a so-called “Shitcoin” without having insider knowledge is unfortunately very high.
According to Blockchainwelt.de, the following criteria must be observed for the selection of a coin, among others:
- How high is the ROI (Return of Investment)? Even if a high ROI sounds tempting, percentages that are too high are not feasible in the long term. A solid value should be somewhere between 5% and 25%.
- Does the project have a purpose? (use case)
- Is the whitepaper comprehensible and solid?
- Are those responsible known and on which projects have they been involved in the past?
- Is there a website and how is it designed?
- Is there a GitHub page?
- How is the support of the coin network. Is the coin represented on social media and how is the community structured?
- How has the course developed over the past few months. Is there consistent performance or has the price been artificially inflated?
Part 2 – Alternative – making money together with the masternode pool
Perhaps while reading Part 1 you thought, “Oh no, this is not for me. Everything is far too complicated!”. I can reassure you, there is an alternative: the masternode pool. As the name suggests, you can invest in a pool of masternodes instead of just one. Again, I will show the advantages and disadvantages that such a pool offers.
The advantages of a masternode pool are obvious: In the pool, many financiers invest in a variety of cryptocurrencies, so the pool contains many masternodes at the same time. This reduces the risk for the individual as much as possible. Even in the event of a coin crash, the individual notices little of this in his earnings, because the risk is widely spread. The Masternode landscape changes almost daily and it is almost not possible as a private operator to always keep yourself up to date and to react to short-term changes, at least not if you want to do other things at the same time. The masternode pool operators, for example GetNode, have experts who deal with these changes and innovations all day.
In addition, the entry into a masternode pool can be financially flexible because there are no acquisition hurdles like operating your own masternode. The world’s leading masternode pool operator sets the entry barrier at 1000 euros.
There are only two possible disadvantages compared to running my own masternode. On the one hand, you have to pay a certain fee to the operator for managing the masternodes in the pool, at Getnode that’s 25% of the income. But the operator also does all the work and maintenance services, and you don’t have to worry about anything. Secondly, it is theoretically possible to get bigger returns with your own masternode IF you have the necessary know-how and cash, but in my opinion the risks outweigh the benefits here and for me, it would be too risky to try it alone.
Making money together – How can I invest?
If you find the concept of a shared masternode pool promising and want to figure out how to get started, I can put your mind at ease. Getting started is very easy. Personally, I have had very good experiences with the masternode hosting market leader Getnode. As you may have already seen, I also posted the advertising banners for the Masternode Club in this post. But I do it out of conviction, because the club has served me very well in recent years and hopefully will continue to do so. To register you first have to sign up for free using one of the links. Of course, we benefit if you register via our link, but the Havana Investors Club also offers you decisive advantages when you register with our link. For example, you have the opportunity to benefit firsthand from a lot of information on the subject of investment in our Telegram groups, only our partners receive an invitation to that group! Incidentally, the founder of the HI Club, Florian, works in support section at Getnode and always reliably supplies the HI Club with the most important information. In addition, after registering, you will receive a few opportunities to build your own team, the details will then follow in an email.
But now back to the Getnode Masternode Club. After registering for free, you can take a look around your dashboard. There you will also find the link to the Telegram and other social media groups, where you can exchange ideas with the members. I advise everyone to do a lot of research before investing, because trust is good, but control is better. If you are then convinced of the concept, you can use the deposit option in your dashboard to transfer money from your bank account or deposit in Bitcoin. I personally always invest in euros at Getnode because that way you can benefit from the increase in value of the Masternode Coins without being distracted by possible price fluctuations of the Bitcoin and frequent “what if” questions. It’s more of a mental thing, because after you’ve invested in Getnode, you own Masternode Coins, not Bitcoin or Euros. Many have still not understood this and so discussions and confusion often arise, I would like to spare you that from the start. If you then want to have your investment paid out again after the minimum investment period of 180 days has expired, the Masternode Coins are exchanged again and you receive the proceeds; this can be lower or higher than the starting sum. By the way, I have never even considered paying out my investment, because I am really happy with the fortnightly returns.
After the deposit you have to be patient for a few days, because the activation of your pool share takes up to 14 days. This is because Getnode purposefully buys masternodes and sometimes waits for cheaper prices or collects investments in order to then buy a new node. As soon as the activation has taken place, the commissions will be added to your account every 14 days. Do not be surprised, the payment is only made if a minimum amount of 0.0015 BTC has been reached. This is due to the minimum transfer sums of some providers and is also a security measure. If you pay in euros, you can also withdraw in euros. You can also choose to use Bitcoin, which is a perfect introduction to cryptocurrencies, without going through an annoying exchange. You must know though, that you cannot change back after a one-time Bitcoin payout. However, I always cash out in BTC, that way, in the last few months I have been able to benefit from the terrific market value increase of the crypto currencies.
How much is the return?
Unfortunately, there is no general answer to this, because the return depends on many factors. Among other things, the market development of cryptocurrencies influences the price, which is why people who invest before an increase logically receive higher returns, measured against the investment amount in euros. But because no one has a crystal ball, it cannot be foretold. With my investment from February 2020, the return on the payments until February 2021 was around 35%. And the initial investment has risen sharply in value. Of course, the rising crypto prices have favored this development, but Getnode has already proven itself in a bear market in the past.
If you have any questions about the Masternode Club or would like to understand the concept even better, take a look at the following articles or contact us:
The crypto age has begun and I think it is still far from too late to venture into it. Most people are only just beginning to be interested in it, so there is still a lot of upwards potential. In my opinion, the Masternode Coins should not be missing in a decent portfolio, but in order to minimize the risk and keep the entry costs under control, the Masternode Club is for many, as for me, the only sensible option. Getnode has made a name for itself through years of good work in this area and has earned the trust of its members, which is why I do not trust any other company when it comes to masternodes. Professional and good work always pay off in the end. I can say with full conviction that I have never regretted my entry and will never regret it!
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