As 2019 comes to a close and there is new hope of the end of the terrible cryptocurrency altcoin bear market, I would suggest that you consider diversifying your cryptocurrency investments to include masternode coins, as many are selling at all time lows, so the time to buy the pre-requisite 1000, 5000 or 10,000 coins, maybe now is the best time for you to buy them.
First I should review what a masternode as a construct.
I think a good Formal” definition of a masternode using the usual cryptocurrency terms is this;
A Masternode is a server on a decentralized cryptocurrency network; its purpose is to complete tasks for the network that a simple node is not able to accomplish. These tasks can help allow (for example) private or instant transactions on the network. Masternodes typically require a high amount of collateral to be accepted as part of the network. As a reward for their work, they typically receive a portion (%) of the block reward. The payout times vary, some Masternodes pay out once per day, others once per week, etc. If the required collateral is removed from the Masternode wallet, the Masternode will no longer be accepted by the network until properly funded.
The second way to define it is as an asset class, a performing asset.
Masternodes are a fascination asset type of investment which in theory pays you money for investing in it and running a node on the cryptocurrency network.
Masternodes are easily explained in banking language. MasternodeScare a type of passive investment, which is specific to cryptocurrency. Many people do not understand what a masternodeis, so do not feel bad if you do not understand them. I think they're easy to understand if you compare it to a common type of bank account called a Certificate of deposit or CD.
The following list are the requirements and rewards for having a "Certificate of deposit".
You must have money, which you do not need for monthly expenses. It must be money for you to invest at least a month. You deposit money in a storage container called an "account". You agree to keep your money in the "account" and not spend it. The bank uses its money for the "financial transactions" of other people. Rewards for Certificate of deposit. In return for these conditions the bank pays you "interest" based on a predetermined percentage. You are paid an "interest" based on a scheduled schedule. You earn money every day without any work on your part. You even earn money while you sleep. This is called a "passive" investment.
Now, using that same terminology I will explain masternodes.
You must have money, which you do not need for monthly expenses, but it must be in the form of a cryptocurrency which has a masternode as a feature. It must be money which you can afford to invest for at least a month. You deposit the cryptocurrency in a container called a "wallet" instead of a container called an “account”. You agree to keep your cryptocurrency in the "wallet" and not spend it. The blockchain (instead of the bank) uses your cryptocurrency for the "financial transactions" of other people. The blockchain then pays you additional cryptocurrency called "rewards" instead of interest. You are paid "rewards" based on a predetermined percentage. They pay you "rewards" based on a previously determined schedule. You earn money every day without any work on your part. You even earn money while you sleep. This is also called a "passive" investment.
Now I hope you understand Masternodes in both a cryptocurrency network node and in a financial sense as a performing asset.
✍️ written by Shortsegments
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