There are many ways to earn money with cryptocurrencies, very different from just buying and selling. One way is mining, which allows you to join groups of miners POS & masternodes to get a small portion of the profits.
However, not all currencies can be mined, some are based on a consensus algorithm called Participation Proof that allows you to participate in the transaction validation process by committing your currencies, thus receiving rewards. This type of system is also known as “staking”, and often consists of only sending tokens to a compatible wallet.
Then there are what we call POS & masternodes, which is essentially a form of staking, with the difference that it involves having a computer, instead of a purse, set up for the task. This must be intended for the purpose of the blockchain, it must necessarily be connected to the internet all day.
Once we have our computer ready to function as a server, it is necessary to install the masternodes application, from here it is as simple as committing to a number of coins above the minimum specified by the blockchain.
The main benefit of owning a masternodes, unlike simply staking, is that it is always involved in helping to validate the transactions of a blockchain, and for that task it constantly receives rewards. This implies that income is a constant source, which is very interesting with POS & masternodes.
However, setting up a masternodes is a task that requires more than simply allocating some coins, a person with technical knowledge is needed to manage the hardware and configure everything.
There are services that do all this hard work for us, but as expected, they take a part in commission, making the return on investment decrease greatly. There are also few regulations on this type of services, so it is imperative that we take special care when investigating which we are considering hiring for POS & masternodes.
If you have a computer that you can use for this task, you may want to put it to work in one of these 2 currencies with passive earnings through proof of stake and masternodes.
Currencies with Passive Earnings Through proof of Stake and Masternodes
# 1 Dash
Dash was the first cryptocurrency to implement a system with master nodes. This occurred as a result of one of the characteristics that Evan Duffield, the founder of Dash, wanted to improve from ecosystems such as Bitcoin, where he perceived a lack of a good governance system.
Dash’s problem is that it requires a large amount of DASH coins wagered that involve a huge investment, 1000. At today’s price, that means disbursing $ 183,000, although it is much less than at its all-time high when it exceeded $ 1,000, and there it was necessary $ 1 million.
The master nodes divide 45% of the rewards of the blocks, which implies obtaining a little less than 7 DASH per month, which is a fairly respectable figure if one considers that we do not lose the inverted DASH.
Every 380 days, the reward is reduced by 7%, which is quite a lot. But over time, assuming that Dash increases its value, this will not significantly affect those investors.
In addition to the large investment with which we must commit ourselves, there is the problem of technical aspects, which involves having enormous knowledge on the subject. It is necessary to know how to configure a virtual private server and edit configuration files.
There are guides in the Dash forum itself that can help you in the process, although I must tell you that it is not easy. Another negative aspect is that we must have plenty of time to perform the necessary maintenance to continue running the master node, updating it and operating it correctly.
If you need help with these issues, there are services you could try, although of course they charge a commission for hard work.
# 2 PIVX
With almost 57 million coins issued, more than 20 million of those are in purses and masternodess wagered, causing that just a little more than 30 million are actually in circulation.
A master node in this blockchain requires a minimum participation amount of 10,000 PIV, which at a price of $ 1.21 is the same as saying that a minimum investment amount of $ 12,100 is needed.
The PIVX network masternodess have an annual return on investment of almost 6%, offering the investor an income of almost $ 700. This profitability does not seem much, but we must consider that what we saw last year in terms of market expansion is not something that can be repeated in the long term. In addition to that if one believes in the future of the project, the returns can be even greater.
In order to have your own master node it is necessary that the server has a Linux operating system, and there is even the possibility that you use a Raspe berry Pi, a mini computer that costs $ 35. It is also necessary that you have a unique IP address.
The latter implies that we cannot use our basic internet connection for the task, but we must find a provider that offers us an internet address that does not change over time, which implies an extra cost. Although there is always the possibility of hiring a hosting service that usually provide these features.
If you understand how to perform all the configuration of a server for PIVX, then you will be able to operate a masternodes. If you still want to achieve it but you don’t have the necessary knowledge, you can hire a service provide mycointainer.com that helps you.