How and how much can you earn on masternodes? How to invest in masternodes? Guide for the new investors.
The concept of ”mining” in the minds of clearly entrenched in the minds of users next to the image of a huge number of graphics cards, strange boards or something like that. In reality, the cryptocurrencies world has already stepped much further, relieving miners from the need to maintain expensive equipment, provide cooling, electricity, rent a room.
Miners used 99% of their time and resources to find the hash, going through an infinite number of variants. But today, the work of creating blocks and recording transactions in them has been radically changed. Masternodes have become a great solution, because they are able to perform the same functions, while spending much less resources and almost no content. In addition, you do not need to be a programmer to create a masternode, even the average user will be able to start his own node without any problems. It is enough to buy a certain number of coins and start receiving passive income. Using our service mastermode.fans you can install the masternode in just one click!
One of the main advantages of this type of earnings is that the coins are constantly on your wallet, only you have access to it, and you have every right and opportunity at any time to stop the work of the masternode and sell the coins, returning the money.
The technology of masternode creating in blockchain networks has gained unprecedented popularity and continues to gain momentum. Coins that support the creation of supernodes, today quite a lot. Some of these coins are created by qualified specialists, so that the price of the coin is kept at a certain level for a long time and even grows. However, there are cases when the coin loses its value dramatically, such coins are called ”Scam”. However, on these coins you can earn, with great risks, of course with the corresponding profit. In this article we will consider all possible options for earning due to masternodes.
There are several strategies for earning on coins that support the creation of masternodes, the main ones:
1) Buying at presale for future sale.
The appearance of new coins, their evaluation, characteristics and features of the sale can be easily tracked on bitcointalk.org forum it is the largest resource in the network dedicated to cryptocurrencies. All new projects must have in this forum your branch of the discussion.
Choosing a coin, which currently has a presale, you can buy their coins at a reasonable price and get more profit while the ROI of the project is high. This strategy makes it possible to sell part of the coins at the peak, increasing profits. Immediately after the purchase set the masternode and begin to receive regular income. In the early stages of a project's existence, there are usually only a few active masternodes running, so you actually make super profits. After the release of the coin on the exchange, you can gradually sell your coins and withdraw funds. However, there is some risk in this strategy: developers can be scammers and hide with the money immediately after the presale. In this case, you will be left with a bunch of useless coins that can not be sold. This is the most risky strategy, it is much safer to work with already traded coin.
2) Buying coins at the first days of trading on the exchange with subsequent sale.
It is a good habit to browse website masternode.fans if you are looking for new coins to appear. All projects that support the creation of masternodes, get to the site immediately after listing on the stock exchange.In many ways, this is facilitated by the project developers, who try to attract the attention of users to the project as quickly as possible and take the initiative.
For more comfortable and less expensive monitoring of new projects it is easiest to register on masternode.fans, specify your telegram and you will be notified of all new projects added to the site. This will significantly reduce the search time and be the first to learn about promising projects.
Pay attention to the date the project was created and added to the site. New projects have the highest profitability ratio.
After you have decided on the project — be sure to check the availability of its coins on popular exchanges. For these coins it is primarily Graviex, Crypto Bridge and Cryptopia.
Graviex is the cheapest listing for new coins, trading volumes rarely exceed 2-4 BTC. Limit on withdrawal without KYC — 2 BTC.
CryptoBridge - average listing price for developers. Trading volumes sometimes reach 100 BTC, usually 10-15 BTC for a new coin. The most popular exchange for such coins, there is no limit on withdrawal.
Cryptopia - the most expensive listing, rare coin gets on this exchange. Here trading volumes are about the same as on CryptoBridge, but the coin is traded with such volumes for much longer. You can be sure In this coins on exchange, they keep a stable rate for much longer.
On the exchange, you should pay attention to several factors:
- The volume of trading on the exchange, we are interested in indicators preferably above 7-8 BTC
- Activity in the community. The more interest among users-the more likely that the project will live a long time. The quality of support work is also important.
- Number of online users in discord. If there are 100 people in the group, you can enter the project, but there are risks. If 500 and above is already a good sign. Also, if you enter the project not at the first day, it is worth paying attention to the growth in the number of online users - it increases or not, the dynamics should be positive.
- Whitepaper. The presence of WhitePaper - a significant plus of the project, reflecting the main ideas. Study it carefully.
- KYD (Know Your Developer) projects that have implemented KYD have a significant advantage. This service will also be implemented on the masternode.fans website.
- Design of the topic, discord, website. Even such small details as the design of the site or the ability to choose a language, show the attention of developers to their project.
- Information about the development team, if it is open, it is a big plus to the project. Such projects are much less likely to be a Scam.
- If you enter not at the first day, pay attention to the number of masternodes online; if the dynamics is positive and the number of masternodes increases - this is a good sign, the higher the dynamics, the better.
- ROI is also a very important indicator. The higher the ROI, the higher the risk, but also higher the return.
- Twitter, Telegram, Bitcointalk, Discord, etc - the higher the frequency of news from developers the better.
- Marketing-bounty, advertising, reviews. A good development team should have quality marketing.
- Support. The more support in the glass to buy the better.
- Sharing services. There are services that allow users to combine and co-invest to create masternodes. The most reliable projects are always in demand. One of the most convenient services for this is masternode.fans.
Further in article it will be in detail told how to estimate coins on these data.
3) Investing in projects that have won their place in the market.
The honesty and reliability of the developers can be almost no doubt, if the project has held the course for more than 3-4 months, it can be trusted.
First of all, you should pay attention to the following indicators:
- Trading volume
- Coin price
- Do the developers continue to support the coin
The” older” the coin, the lower the ROI, this is due to the number of working masternodes in the network. At the same time, due to the fact that the coin has been on the exchange for a long time, it has some liquidity. But there is no guarantee that this will not change during the year. This is a crypto market, here everything happens quite quickly, both UPS and downs.
Once you have decided on the strategy it's time to choose a specific project. To begin with, we recommend that you charge each cryptocurrency a certain number of points for the presence or absence of WhitePaper, KYD, trading volumes and other things. The most convenient would be to make a table of promising projects, and to analyze each of them. The result is a table like this:
It shows that, for example, for the first coin listing on the stock exchange you estimated at 4/10, trading volumes 3/10, project have published WhitePaper, it is 10 points, media activity 10/10, etc. After completing such an analysis, you can compare the results with other projects and choose the most suitable one. With experience you will learn to understand much better in promising projects. While it is necessary to pay attention to the projects, which in total scored more than ⅔ of the maximum possible points.
For the first investment you will be enough to conduct such a study and find out for yourself what to look for in the first place when choosing a project.
Note that the table does not contain all the data mentioned in the article. We have prepared it as an example, to improve the quality of analysis we recommend using more data. Based on the theoretical calculations in this table - novice investors are recommended to work with coins №3 and №4. More experienced participants can work with the rest, even the number 6 and number 7 have the opportunity to make a profit, but the risks are greatly increased.
Our next article will be devoted to a full and detailed analysis of projects for investment, in it we will analyze profitability of the masternodes and show how profitable it is.
4) How to trade on cryptoexchange
Choosing an entry point always remains a difficult question with no clear answer. There are dozens of different theories, but they all agree on one thing - there is no constant growth and constant decline (unless, of course, this is not a Scam). Having noticed that the coin has sharply increased in price-it is worth waiting: most likely, a large investor bought a large number of cryptocurrencies and in the near future it is worth waiting for a dump.
Sell the coins is with caution, do not start panic sale. This strategy will only lead to the fact that most of your coins you sell at a low price. Keep in mind that you are not alone, there are other investors who also receive income and try to sell their coins. It is necessary to not bring down the rate, it is better to put the coins on sale at the current market price and wait until they are redeemed. A large flow of coins, both on sale and on buy, can cause panic on the exchange.
5) What way beginner should choose?
Before you invest real money you should practice. Without investing real money, check the profitability of a particular cryptocurrency and the quality of evaluation. To do this, you can choose which cryptocurrency will suit your needs. It is better to create the record that will be convenient to return. In it, make the cost of running the masternode at the entering time, find already running masternode IP and enable its tracking on the masternode.fans website. After a certain time, you can calculate profitability of masternode, based on the income of the selected node, check whether it is possible to sell it on the crypto-exchange.
After this ”training” you will learn how to determine masternode profitability. You will see the main elements that you should pay attention to and analyze projects. Now you can start earning real money. You should start with small amounts - site offers masternodes, which cost only a few hundred dollars, or you can use the sharing service and buy part of the masternodes. After receiving the first income, you should think about increasing the turnover and gradually create more masternodes for different projects, depending on your strategy.
We recommend that you use the second method of investment: in recent projects that have a listing on crypto-exchanges. The graph of these coins is almost always the same - slow downward movement. Investors who have managed to enter the top point, earn thousands of dollars. Those who came a little later measure the income already in hundreds of dollars. In any case, we recommend that you approach the issue of choosing a cryptocurrency to create a masternode with the maximum seriousness and invest only in those projects in which you are confident. In addition, be sure to practice on the site mastermode.fans before investing real money.
6) Money Management
First of all, it is worth remembering the Golden rule of the investor - never invest all your money. The best choice-10% of the total amount, that is, if you have $1000, it is best to invest $100, buying a cheap masternode or using the services of sharing. The exception can only be in the case when you find a project showing too good performance on all items. Risk - is a noble cause, but only when the risk is justified!
We recommend that you keep a diary of the investor, where you will record all your income and expenses, the results of the analysis of various projects and other information that will help you become a professional in just a couple months. And never give vent to emotions, let the cold head directs warm heart.
MNF is a service that will allow you to independently study and compare the parameters of different coins, monitor your own masternodes with the specification of the required parameters. Within the provided service, we do not recommend any coins, we do not give guarantees about the results of investing in them. All decisions, you make regarding the coins presented on the service, you accept at your own risk.
As a rule, many parameters of coins (including ROI, Price, Volume, Nodes, MN Worth) can be changed and are not fixed. You can take into account both these changing parameters and other factors of the project that affect its success.