Before we dive into how you can setup a masternode, lets actually go over what one is. Essentially, a masternode is a nothing more than a server located on a decentralized network. The purpose of them is to execute unique functions that other, regular nodes cannot. Usually, their functionality revolves around handling transactions. Additionally, some masternodes require a significant upfront investment in order to function. More information on what masternodes are can be found here.
So, let’s get to it then!
Picking a masternode.
A good idea is to always check out sites like this, and pick a coin that provides a good return on investment (ROI), and that is, preferably, not too expensive.
For example, if we look at Bitcoin Final (BTCF), we can see that with 2,500 BTCF coins we can get a 3,544% ROI per each 10-day period with a payout average of $105.7943 BTCF which equates to about 105 USD.
Or let’s check out, Zalias (ZLS). If we have a masternode setup using the required 1,000 ZLS, we can reap an almost 9,000$ ROI over 4 days, or about 419 USD per day!
We can see that Dash, required 1,000 coins in order to get a master node running. Which costs almost half a million dollars. And that will provide you with an ROI of roughly 2,500 USD at this point in time.
But, while setting up a masternode for something like Dash can be more expensive, it’s also a bit more reliable than going with a low rep project.
All in all, if you’ve got the funds, masternodes make for a great passive cryptocurrency based income. Especially for those who would like to get involved with the field yet can’t due to having day jobs or other obligations.
So, what do you do once you find a coin that you want to set up a masternode for?
Suppose that you have discovered a coin which fits your budget and can provide you with a decent ROI. The next step would be figuring out how to actually set up the masternode itself. While it may require a bit of technical prowess and may seem like an overwhelming task at first, it actually isn’t, due to the abundance of available information that can be utilized.
So, there are a few key things that are required to set up a masternode, that being:
Computer: A Windows, Linux or Mac will do the job fine. Some masternodes might require powerful gear, generally, all information regarding that can be found visiting a coin’s respective site through here.
Cryptocurrency wallet: An essential component of running a masternode. For example, here’s a list of wallets supported by Dash.
Virtual Private Server: A Virtual Private Server runs a copy of an operating system. More information on how to set up a VPS can be found here.
Sure, setting up a masternode might feel complicated at first. But each coin generally provides users with a guide going over the exact process from A to B. For example, Dash even has an instructional video.
Additionally, it’s worth mentioning that you can actually set up everything you need to run a masternode before acquiring the appropriate coins to do so.