How to stake coins? – What is a Masternode?

SagaCoin > Blog > How to stake coins? – What is a Masternode?

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.

SagaCoin Masternode

SagaCoin is a Masternode Coin. It requires 2500 Coins to start and operate a Masternode. The ROI is currently at about 70%.

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