What is Masternode?
Masternode is shortly a 24/7 crypto wallet. It works fully synchronized with the blockchain of any cryptocurrency. It is established in order to keep the records of the transactions performed properly and to decentralize the system. Thus, in exchange for the registration and verification of the transactions of the money you set up, you will be paid crypto money at specified intervals and in determined amounts.
First of all, we need 2 things to set up masternode. The first one is to buy a certain amount of the relevant coin and keep it in the wallet, the second is to keep the wallet of the relevant coin open 24/7.
How should I choose the coin that I will set up in Masternode?
Most importantly, the developer team of the coin you choose should be solid and active. You should examine social media accounts and especially github page. The interest given by the relevant coin should not be too high at an annual rate. Generally, I think that those who do not exceed 50% of the annual max are coins.
Advantages: It is possible to generate regular income by establishing masternode even in the bear market. We can compare this to monthly rental or interest income. I think that banks can give interest to some big cryptocurrencies when cryptocurrencies become widespread in the future. It can be a good alternative and passive gain for those who do not necessarily do HODL.
Disadvantages: There are many fake projects in the crypto money market. Respecting one of them and installing masternode means risking your loaded investment. It is an investment form that needs attention and detailed investigation.
If we look at the most popular masternode coin Dash; You can install masternodes on 1000 Dash. You keep 1000 Dash in your wallet to run masternode and if you decrease these coins, masternode does not work. You also need to leave a computer open 24/7 to show off your wallet movements, or you need to rent it.
Today, 1 Dash is trading at $ 80.62. 1000 of them make $ 80620, with the current dollar rate of approximately 435 thousand TL. Dash masternode is $ 14.75 daily as of today; $ 103.27 per week; $ 442.59 per month; on the other hand, it yields an annual income of $ 5384. If I put 435 thousand TL in a 1-year interest, 69 thousand TL will be interest.
In conclusion, I recommend everyone to weigh their own lives and make the most appropriate investment for them. Because difficult times are very close for a life that is not invested in time