I recently wrote a blog post about my Cloud mining experience with Hashflare. I made about a 25% return in 15 days and averaging over 1% a day mining BTC. So far so good! I have now uncovered another 1% a day crypto passive income stream, masternoid (MN).
Essentially, if you own 1000 coins of certain alt coins and set up aMN. Masternodes are computers that run a wallet and make decisions, such as locking transactions with InstantSend, coordinate mixing of coins, and voting on budget funding. Masternodes get paid 45% of the block reward on every block, which is distributed to masternodes one at a time.
Bottom line, you get paid a dividend to hold the altcoins. You can get out of a MN whenever you want to. Some coins that are paying over a 1% a day reward to be a MN.
Coins have different thresholds, and some have a lot more masternodes than other coin. It can be a very expensive to get into since you must purchase 1000 coins. The risk is the price of your alt coin plummets and too many others set up masternoides. This will decrease your dividend.
How do you decide which alt coin to set up as a masternode? There are sites that rank the current ROI for any given coin.
If you don’t want to take the risk of buying 1000 shares of a coin, but still want to share in the profit of a masternode, you can now buy shares (a percentage) in a masternode. The only cost is you give up 7% of the reward each day to the host, coinwatch.center. They have 4 masternodes you can share. Gobytes (GBX) and Sparks (SPK) are the most profitable of the four listed. Sparks ROI is listed at 1500% a year, but its very thinly traded and the one exchange that has it had been down for 4 days. GObytes ROI is about 380% per year.
I did a GBX masternode test over the weekend. I bought 40 GBX from Cyptopia and bought 2 shares (4%) of a MN. After 24 hours I was credited my reward of .558 Gobytes. That is a return of 1.4%. I suspect returns will fall over time, but it is impressive. Returns will only increase if the price of GBT goes up. An example of this is KuCoins. Kucoins is an exchange and they share 50% of the commission with holders of Kucoin coins (KCS). They are averaging about 8% “dividend” per year on todays volume. However, volume is exploding and has gone up over 5x over the past month. I bought Kucoins last week for $7 and they are now over $14 because of the increased volume at the exchange. The key to getting your portion of the trading fees is to keep your KCS coins at the Kucoin exchange.
Assuming, the GoBytes MN returns stay high, I will buy more shares. You can sell you shares anytime at coinwatch.center. Once you sell your share of the MN, you can exchange your GBX coins.
The step by step process for getting into Masternode is:
- Buy GBX by exchanging BTC at Cryptopia in increments of 20. They are trading in the $35 to $45 range
- Open an account at center.
- Go to their tab menu and select Masternode and then submenu of “% Shares”
- Send your coins the wallet address listed at center for GBX
- Then click “Buy Shares” and put 1 “share” for 20 coins, 2 “shares” for 40 coins etc.
- Once they sell 50 spots or 1000 coins, they will set up the MN, every day you will have 1% of so new GBX coins in your wallet. You are free to then transfer and sell the GBX ‘dividend”