What are Masternodes?

Regardless of whether or not you’ve been interested in the investment world your entire life for 15 minutes makes no difference, the odds are good – great, really – that you have heard of legendary investor Warren Buffett.

Known throughout the industry as the Oracle of Omaha, Warren Buffett is one of the wealthiest people on the planet – wealthy generated through smart investment and savvy entrepreneurship.

For obvious reasons, people always seek out advice and inside information from Buffett, and the advice he gives time and time again to all kinds of investors is straightforward and simple:

“If you don’t find a way to make money while you sleep, you’ll work until you’re dead”.

No matter how that quote might strike you right now (as something powerfully motivating or demotivating) is important to recognize the real-world wisdom that this quote encompasses – and it’s just as important that you look for ways to generate money while you sleep in the world of crypto currency.

A number of different options exist in this investment space to help you generate real wealth while you are sleeping, but few of them have the same kind of leverage, the same kind of power, and the same kind of consistency that a masternode will.

Let’s dig a little deeper into everything that masternodes bring to the table.

What exactly is a masternode, anyway?

At the root core of everything, a masternode is simply nothing more than a server that has been set up on a decentralized network. The way that these kinds of nodes have been designed is to give them unique functionality not available anywhere else, particularly when it comes to features that allow for the direct sending and instant transactions of the information online.

Because of their unique capabilities, masternodes really fit well in the world of cryptocurrency. While they certainly command a sizable investment upfront to get up and running, with the right incentives put in place – and the right leverage used to capitalize on this network – they give masternode owners and operators an opportunity to reap significant rewards in the world of crypto.

Depending on the specific solution you take advantage of, you’ll be able to leverage different pros and cons. Every system is unique and usually designed to work with a single cryptocurrency in particular versus a one-size-fits-all kind of application. You’ll also want to pay attention to the payout program for masternode operation, that can vary from payouts on each individual transaction to bulk payouts every day, every few days, or even every week.

A masternode is different than a Proof of Stake (POS)

A lot of newbies to the investment world of cryptocurrency have been misled into believing that a masternode set up is the same or similar to a POS coin – but that’s not exactly how things actually shake out. While there are plenty Proof of Work (POW) and POS coins out there that take advantage of masternode technology they aren’t exactly the same and certainly aren’t interchangeable terms, either.

At the end of the day, you can generate passive income while you sleep with a masternode just the same as you can with a POS crypto currency but you don’t necessarily need POS crypto currencies to run a masternode.

How much money can I generate with a masternode?

This can be a little bit difficult to answer, if only because there are a lot of different factors that play a role in how much wealth you are able to generate – particularly passive income – when you use this investment vehicle.

You’ll have two focus on things like:

  • The specific cryptocurrency or coin you choose
  • How that coin leverages masternode technology
  • What the Expected Value (EV) of that crypto is for the foreseeable future

… And that’s just the tip of the iceberg.

All of these core factors will have an impact on the kind of wealth that your masternode set up may be able to generate. Obviously, each of these different factors can fluctuate wildly from one day to the next – like any other investment vehicle – and there is no such thing as a sure thing in the masternode or crypto space.

But as long as you really focus on the fundamentals and do your due diligence about how you set up a masternode moving forward you shouldn’t have a whole lot to worry about. This is an easy tool to start leveraging to generate wealth – real wealth – even while you sleep!