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Masternode as an alternative tool for Crypto Investors
Cryptocurrency is traditionally a high-risk, volatile market, with frequently-changing trends. This creates a high emotional threshold for entry into the market for investors in the classic sense of the word.
Cryptocurrency investments represent the territory of professional traders and hedge fund managers. This territory has its own rules and laws. As a private investor, once you venture into currency speculation both in the short and long term, you automatically face an uphill battle against an already losing position. It’s only the incredibly lucky or those with unpredictable logic that goes beyond the thinking of the market that can hit the jackpot, beating a professional on his own territory.
Does this mean that the most advanced digital investment tool was created initially for a small group of professionals and enthusiasts? Of course, no! This statement on itself runs contrary to the spirit of the free Internet and the erasing of borders between countries and people, for whom the entire crypto-industry was conceived.
For quite some time now, blockchain networks have had such concepts as PoW and PoS-mining (Proof of Work and Proof of Stake). Some years ago, another way of reliably securing the network emerged from PoS mining — creation of masternodes. Apart from solving its main task, this mechanism has been a tool for generating solid income for investors.
Masternodes
Actually, masternodes are special full nodes on a blockchain network that store all the information about operations performed, act as a guarantor of the validity of the network, confirm transactions instantly, and plays a major part in ensuring anonymity.
With such a wide range of functionality, a masternode owner has no option than to confirm his interest in developing the network and maintaining its efficiency. So, under the confirmation condition in the BeeNode blockchain, 1000 coins must always remain on reserve and available in the masternode wallet.
Masternode owners receive a reward (45% of the total number of coins issued in the block) for playing a key role in the work of the BeeNode network. Since 576 blocks are issued every day based on the preprogrammed algorithm, it turns out that with the current network complexity and release of 1 coin per block, this entails 259 coins per day and above, shared daily between masternode owners.
The financial attractiveness of investments
You can receive commissions for masternode for any length of period. So long as mining is occurring in the network and 1000 coins remain on reserve, the masternode will function and regularly reward the owner.
BeeNode coins given to a masternode owner as a reward can be used as he likes. the owner can decide to sell them on the stock exchange at any time by converting the income from crypto coin to the usual currency.
Such a digital asset brings guaranteed profit irrespective of exchange rates, unlike the usual cryptocurrency speculation, where income depends on your ability to buy and sell coins on time. Passive income in this format allows you to feel financially secure and gives you confidence.
This information becomes even more obvious when figures are presented. At the current exchange rate, it costs $12,000 to create a BeeNode masternode. At present, there are 36 masternodes in the network, which receive reward from each mined block in turn. The total daily reward per masternode starts from $86.
The estimated return on capital invested in a masternode (ROI) is 21.5% per month. A rare asset offers similar return on investment.
On top of that, the thousand reserved coins also remain on the investor’s account balance and can be withdrawn at any time (with the breaking up of the masternode) if the investor wants to take his investments back.
Such a system of conditions and rewards makes the masternode a complete cryptocurrency investment tool. Moreover, masternode is incredibly simple and does not require any special knowledge. When all is said and done, masternode is a crypto equivalent of a classic bank deposit, suitable even for the most risk-averse investors.
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Masternode as an alternative tool for every crypto investor was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.