Masternodes are a group of servers that support the blockchain. For maintaining, supporting and stabilizing the network the Masternode gets rewards – these rewards are paid in Coins.
Besides pure staking and trading crypto-coins to operate a masternode can be a profitable way to earn a permanent income.
To operate a SagaCoin Masternode you need 2500 Coins (called collateral). There are descriptions available that explain how to setup a Masternode. For people with little technical experience masternode hosting services are available. Some of the masternode hosting services also offer shared masternodes, in case you do only have a fraction of the collateral available.
The very first Crypto Currency (2014-2015) with Masternode functionality was DASH (Digital Cash).
What does it take to setup a Masternode?
Setting up a Masternode needs some technical experience.
- A server
- A certain amount of Coins (the “Stake”)
- Setup scripts or wallet to install the Masternode
Pro and Cons of a Masternode?
Plus:
Masternode Coins (Proof of Stake) have some advantages in comparision to Proof of Work Coins:
- Get higher rewards than PoW Coins
- Less network requirements (normal PC / Server is sufficient)
- Little running Costs (almost no electricity Costs)
Cons:
- Higher initial Investment necessary
- Investment is blocked while the Masternodes operates
- Some technical skills required (install and configure scripts and server)
How to choose the right Masternode coin ?
There are many Masternode Coins available (400 +) to choose from. You find a good overview of available Masternode Coins at Masternodes.Online.
Every Investor has another risk profile, so before you start choosing a Masternode Coin you should have a clear understanding of the risk you are willing to take – since this is also a psychological aspect to be considered.
