CPB has expanded it’s services into setup and support of Masternodes, maybe the best passive income generator in cryptocurrency.
Masternode popularity is exploding and growing exponentially. Three months ago there were 63,000 masternodes created and currently there are 154,000 masternodes in existence. It is the hottest income generator in the current market.
As part of the CPB community, you have the skill set for doing due diligence on crypto coins.
Why not apply those skills to a “set it and forget it” income generator? It’s not entirely “set and forget”, but it’s pretty easy, especially with the assistance available from the the Crypto Profit Bot team.
- You choose and purchase the POS coin
- CPB sets up the Masternode
- You relax and watch for profits
WHAT is a Masternode and WHY should I care?
We provide all the information needed below to help make an educated decision.
Why is it worth your time?
Masternodes are an alternative method to earn money with Cryptocurrency. Masternodes earn coins for existing on the network and providing a necessary function. It’s an incentive model that can provide monthly income.
You can think of it like buying an apartment complex. Money is invested to purchase the complex and renters throw out cash flow that ideally is greater than the expenses of the complex. There is an ROI calculation. There are return figures. If you are going to buy coins that you believe will appreciate, then why not earn money now?
What are Masternodes
Masternodes, participants of a decentralized network, are servers running 24/7 that keep a full copy of the blockchain in real-time, communicate with other nodes, and perform special functions.
Masternodes have coins locked up as collateral and in return for the collateral and performing special functions, they receive a portion of the blockchain rewards alongside miners or stalkers.
History of Masternodes
Different than Bitcoin nodes which have no incentive model, the concept of masternodes came into popularity with the Dash cryptocurrency. Dash created a second tier of the network that added additional functionality and in return produced an incentive for participants in the tier.
The introduction of a masternode function in the dash network as a second network tier, different than the first tier miners, share in the rewards for the important function they provide. Some of the special functions that these nodes perform are:
- Increasing privacy of transactions
- Doing instant transactions
- Participating in governance and voting
- Enable budgeting and treasury system in cryptos
Masternodes are not standalone but are always communicating with other masternodes to make a decentralized network and are often referred in short form as MN.
Masternodes require a specific number of coins be locked up as collateral. Because there is a requirement to operate a server 24/7, which is an expense, and lock up coins, which have value, the masternode receives a portion of the block awards alongside miners and stakers. Masternodes will have varying reward ROI’s based on many factors, including value of the coin, number of nodes, time of existence.
Since the creation of the Dash network and the masternode concept, hundreds of new coins have been created with the same model in mind, creating the same reward opportunities.
Resources and Strategies for picking Masternodes
Finding Masternode Opportunities
There are two main sites that are widely used to identify and track masternode coins. They are:
If it looks too good to be true, it probably is. Upon entry to either masternode website, and almost immediately, you will notice the ROI column showing coins with returns over thousands of percent. Take a breath. Those coins are probably not good choices.
Do your homework before jumping in!
The websites are a starting point for your research. If you don’t want to go off on your own, you can jump into the CPB Discord Masternode Community. Talk to your peers about masternodes, share research and get the help needed to get into this technology.
Strategy 1 – Choose a coin that you would HODL
Long term success of a masternode depends on the success of the coin. Coin research requires at a minimum a review of the following:
- Review white paper for real benefits
- Does the Masternode serve a specific purpose?
- Check github for active code contributions
- Check the github for the size and look for multiple contributors
- Identify and review the community around the project
Coins with a real purpose, active contributors, active communities, are better bets. Coins that have been around for a while offer predictable rewards, along with the confidence that that a project will stick around and keep generating rewards.
Masternodes should have a vision too. Beyond anonymous sending and instant transactions, is there a plan for the use and further development of the masternodes? If not, it could just be a feature to draw in people for short term gains.
Strategy 2 – Be an early adopter with an exit plan like an Angel
The dream is to be on the ground floor of the next Dash coin, realize huge gains, and buy a lambo. With shit coins abound, how do you know which one is the next one? The answer is, you don’t.
Angel investors are looking for the next unicorn. They don’t put their eggs all in one basket. Rather, the most successful angel investors will make many small investments betting that one will be a unicorn. The same can be done with masternodes.
Without forsaking the some of the information above, such as having purpose, having a team, and having a community, there are opportunities to buy into masternodes for a few hundred dollars before they get traction, and the value of the coin shoots up.
If you are willing to invest in multiple masternodes across several different coins, you only need find one to be the next Dash coin.
In the current bear market, there is plenty of opportunity to get into masternodes at a discount.
Avoiding traps and pumps
Regardless of which strategy is chosen for picking coins with masternodes, you want to have a fair shot at success. You don’t want to pick coins with masternodes that are manipulated with the purpose of drawing in a lot of masternodes and promising super high ROI.
Avoid jumping into brand new coins which are premined and offer ridiculously high ROI. These coins are incentivized with high rewards to attract the miners. The rewards start high, but the miners will sell and the rewards will quickly drop over the course of a couple of weeks.
How do you identify manipulations? There are several possible flags, which may not be deal killers, but should be signs to proceed with caution.
- Avoid promises of guaranteed or ridiculously high returns.
- Avoid masternodes implementations with no vision or development roadmap.
- Avoid masternode implementations without well documented processes.
No coin can back up guaranteed returns. The nature of a successful masternode over time has an ROI that decreases and the value of the coin increases.
There are coins created with masternodes implemented by the developers to drive up the ROI before release to the public. These can essentially can be the masternode equivalent of a pump and dump.
No two masternode implementations are created equal. Each will have it’s benefits and risks. The importance of researching thoroughly can not be over emphasized. Do your homework.
Getting Started with Masternodes
There is a technical hurdle that has to be overcome to set up a masternode. If you are not comfortable with Linux shell commands, and you want to get into masternodes, we can help with a turnkey services to get you up and running.
By the way, the technical hurdle is good news for us. If everyone that knows about masternodes could jump right in, the opportunity for large ROI would decrease.
Given that you have chosen a coin, are good with Linux shell commands, ready to start earning rewards, let’s take a look at what you will need to start it up.
- A specific amount of coins locked: the amount differs from coin to coin
- A server or a VPS (Virtual Private Server) installed with Linux such as from Vultr
- A dedicated IP address: these usually come with the VPS/server
- Storage space to save the blockchain.
There is also a security consideration that has to be discussed There is no shortage of news about hacks and stolen coins in the cryptocurrency space. You don’t want to be a victim of theft. It is of upmost importance to setup the VPS and wallet with security protocols to protect your investment. There are a few guidelines which apply to not only the masternode security but crypto in general.
- Never ever give out your private keys. There is no getting it back.
- Always encrypt your wallet. Your machine may get compromised, so add another layer of security.
- Never share the masternode private keys.
- Be careful when sharing configuration files to remove your private key information.
- Regularly remove your earnings from the masternode to another address.
There are a number of IT tips that can also be taken to protect your investment.
- Block all open ports
- Change the VPS default ssh port number 22 to something different
- Use SSH key-base authentication and disable root account login
- Run an Anti-ddos script
So, let’s be clear, there is investment required to get into this game. There is the coin purchase and the hosting service to consider against the ROI. As with any investment, due diligence is required, but you already have the skill set to do that well.