Which are the best masternodes to invest in?
Masternodes are part of the infrastructure of certain cryptocurrencies. They are interesting to investors because they offer yield. This yield is denominated in the underlying cryptocurrency. Masternodes earn this yield because they form an integral part of the cryptocurrency infrastructure.
At this time the main role of masternodes is mining, this creates more security and decentralisation. These two variables determine the strength of a cryptocurrency. Node systems are evolving, for example, Crown will be using nodes to host decentralised applications, BlockNet will be using nodes to enable trustless exchange services.
Note: These investments are highly, highly speculative, you might loose all the money that you invest and then some more. As an example: the whole market cap of Cryptocoins is $52,632,819,317 (13/05/2017) while billion while Apple is worth $825,000,000 billion. Cryptos are still young and sudden changes are bound to be wild and unpredictable.
If a whale (someone with heavy bags) decides to dump their coins, the price will collapse inversely if the prince of Bujikstan takes a liking to a particular coin it means the next stop is moonbase Tango.
All masternodes coins are somewhat of a long term investment since the investor needs to buy and hold the coins for some duration. Your due diligence of these coins is paramount.
Masternode coins due diligence prompts:
- Does the investor have knowledge on cryptocurrencies?
- What is the level of technical expertise?
- Is the investor ready to read the white paper, and dig through both old and new info about the coin?
- Is the coin just a vehicle for speculation?
- Does it offer a service which is demand today and will be in the future?
- Can the coin evolve around regulatory challenges?
- How does it fare against the and competition posed from other cryptos and traditional organisations offering the same services?
- Beware of FOMO (fear of losing out) syndrome, is the investor ready to think the decision over for a day, a week, a month?
Masternode investing is not for the faint-hearted. A Dash node costs $88,000 (It was as high as $120,000). Dash is a creating brand and tech value behind the scenes. Is it worth investing in? – This depends if Dash will still be around in the next 10 to 20 years?
Hosting of Dash nodes is easy with Node40