What are masternodes?
Nowadays Masternode investments are a relatively new phenomenon in the cryptocurrency world.In the cryptosphere, there are several ways by which you can make profits and earn a good amount of money. And the best thing is that you can choose the best way that works for you and can accordingly adjust your reward/risk ratio.
However, there's no escaping the fact. Masternodes are very useful for crypto investors because you receive icentives for running a masternode. Consider it just like earning a dayly, weakly or monthly interest on your crypto holdings.Some masternodes can be bought for a few hundred dollars and the technical difficulties of setting up a masternode along with the security process could be negated by using Monetus services (for a small fee).
Different cryptocurrencies have different incentive models through which a masternode (MN) operator can earn a decently monthly income.
If you are investing in a cryptocurrency that allows you to run a masternode, it is really imperative to explore that option of earning very well! Another thing to understand here is that you should choose the right currency for investment if you are solely investing in running a masternode. Monetus have already implemented and checked coin projects with best possible winning percentage.You should also compare the percentage yield against the investment. In short, you should smartly calculate your ROI by your own researches too.
Return on investment?
Lets take a look what exactly is Return on Investment. In simple words it means, your expectations as a return of your funds. ROI percentage is important because it shows you how much you can earn. Sites with stats are important too, but you need to think by yourself. ROI never should be your main reason to invest in a coin! We all want high ROI but it needs to be reasonable. 5000% is not reasonable, 100% is great, 500% is awesome but risky, 1000% with a lot of active masternodes is a long-term suicide. What can we expect to earn by putting money into the stock market? The average annual return in the S&P 500 is approximately 10%, unlike the stock market, a 10% return is very much on the low end. Some years the returns are higher, some years they’re much lower. Holding long term can calm these ripples, while timing the market will sink your returns. The beauty of masternodes is the average ROI and the passive income stream.
There are principal actions which must be taken in order to gain profits on a masternode:
• you have to buy predefined amount of coins called "collateral"
• you have to stake them.
Running your own masternode is the most expensive, most risky, but most profitable way to make money from masternodes.
The initial buy-in to get a masternode must then be 'locked in' to the network, where they will remain until you decide to sell.
This initial stake cannot be withdrawn from the network without destroing your masternode, and thus all the profits that you generate on it.
However, the earnings you make on top of your stake can be withdrawn regularly.
Running your own masternode using Monetus services doesn’t require technical expertise.
Monetus will take care of the whole process for you, in return for a small percent from the rewards you receive. We make masternode participation as easy and as profitable as possible.
We've all heard the saying:
"don't put all your eggs in one basket".
If you haven't, now you have! Essentially we're talking about the need to diversify. Putting most of your portfolio in the same sector, asset class, or market segment is not a wise move, even in something bizzare like crypto.
Diversification in the masternode space is similar to the stock market. You can still choose a variety of sectors (privacy, gambling, protocol, etc), market cap, and ROI. It would be wise not to pick all of the top ROI masternodes out there – chances are high that the ROI will decrease quickly in the short term as ROI chasers move from one masternode to the other. Due diligence here is really important.
The span between the initial investment and profitability is usually much shorter for masternodes. Since masternodes offer rewards in predictable periods of time, we’re able to realize profitability (if it’s a good project) quicker than a traditional investment in the stock market. On the other hand, a bad investment in a masternode could turn out to be a much longer turnaround time as you may have to wait for the next bull market.
The crypto market has nothing to do with interest rates as it is completely independent from the traditional marketplace and third parties.
How do you scale a masternode?
You can use the rewards from your first masternode to pay for the next one once you have saved up enough collateral or you can use your rewards to buy shares in a masternode. Also you can transfer your rewards to exchanges for FIAT or other crypto coins.The use of compounding interest can grow your masternode pretty quickly.
Taxes over your masternode investments vary depending on the laws of your country of residence. Just know that it will be wise to allocate some of your gains for the purpose of paying the tax man.
You should also be aware of fees when you buy the masternode’s token on an exchange, their are service charges for hosting your masternode on a platform and these fees aren’t hidden. They can be seen easily on the appropriate website or platform you have visited.
Active Involvement in stock market sounds like the proper way to outperform the market. But studies show that the majority of actively managed funds underperform typical market indexes like the S&P 500. However, if you’re investing in a particular sector, it may be wise to seek active involvement from an expert in that sector.Investing in a particular sector can be very risky if not part of a broader portfolio.
Masternodes can be a very hands-off operation if you use Monetus service. You simply provide enough of the cryptocurrency to pay for the setup fee, hold your collateral in your wallet, and collect your rewards.
From pump & dumps to prophetic gurus, the stock market has it all. While not as rampant as the crypto market, you’ll find all the usual scam tactics. The best defense against these sort of scammers is due diligence and common sense. If they tell you they have a secret formula for always profiting or they offer an exclusive group where you all get in early and then exit before the dump, GET OUT. In fact, don’t even start. You’ll be better off for it.
As luck would have it the masternode space and crypto space at large has all of the same problems as the stock market. Like the stock market, you’ll find pump & dumps, overpriced trading courses, and exclusive trade groups. The best offense here is a good defense. Before signing up for a too good to be true group, or a polished trading course, make sure to research and ask around. Since the cryptocurrency market is still new, investors have to worry about scammers AND loss in value of their investments constantly. Masternodes are also highly complex to setup and maintain if you’re unfamiliar with Linux, a VPS, and/or command line prompts. Monetus Services can help take care of all these worries and make it simple for you.
The use of the blockchain creates an interesting dynamic when we think about the security of our information. On the one hand the use of advanced cryptography and decentralization being used helps safeguard against hacks, but on the other hand information stored on the blockchain is there forever.
Masternodes tend to have much fast transaction times. Due to the Instant Send feature of masternodes, you can receive payment within a minute of it being sent. Not all cryptocurrencies in general have this quick of a payment channel, but that’s the beauty of masternodes!
Masternodes are not so popular for the moment but this is going to change soon. The same applies to rewards, which will decrease every year. Also, the coins are cheaper than in 2017/2018, which means that the entry threshold at the moment is much lower than before. It won’t cost you a fortune.
Well, at least some of these coins are expected to cost more whenever the upcoming bull run comes. Finally, it’s better to hodl and get rewards than merely hope for prices to go up.