I personally believe that Masternodes and Proof of Stake will be huge in the upcoming years. We noticed a trend and it seems that more and more cryptocurrencies decide to implement Masternodes & Proof of Stake.
Crypto Passive Income – Masternodes
Masternodes are nodes in the cryptocurrencies network that relay transactions and
sometimes also fulfill other specific functions.
Since Masternodes fulfill special functions for a cryptocurrency network but do cost
money and effort to operate, they are incentivized by gaining a share of the block
rewards in their respective cryptocurrency. The yield varies primarily according to the
masternode count and each coin might have different payout periods. A few coins
pay out daily; others pay out several times a day. This makes masternodes a form to
earn “passive income” on cryptocurrencies without having to run expensive mining
equipment. To create a masternode, a user needs to lock in a specific amount of
coin. Users can then either setup a server to host the masternode or ask a service
provider to do so on their behalf.
I personally think masternodes are a great way to hold your coins and earn some juicy
rewards. You need some technical knowledge to setup a masternode server, but
once you’ve done that it’s generating passive income and you only need to check
every once in a while if the coins come in.
Crypto Passive Income – Staking
Staking, also called Proof of Stake is a way to earn passive income by locking your
coins in a wallet for a certain fixed period of time. For doing that, you will be paid
additional coins as a reward. Mostly you need to keep the wallet open & your
computer running while you are staking your coins to gain reward. However, there
are some coins like NEO for example, where you can just leave them in your wallet
and close the wallet and it still generates reward.
I love staking and think it’s one of the easiest ways to earn passive income in crypto
without a lot of technical knowledge. NEO & some other coins are great because you
don’t even need to have the wallet open and you still generate some good rewards
for just holding your coins.
Masternodes & Staking are definitely a great way to earn some juicy passive income from cryptocurrencies. I am trying to get as many Masternodes as possible to setup a whole farm and earn a nice side income. With the rising price of cryptocurrencies, we will also receive a better ROI with time.
Thanks for reading & have a nice Day!
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