Crypto mining has been one of the most profitable ways to earn money in the crypto ecosystem. But instead of setting up an ordinary node, you may go for a more advanced way of making a profit. One of the options is mining with masternodes. What these masternodes are, how they differ from ordinary nodes, and the best masternode coins to use — find out below.
Masternode: What Is It?
Masternodes are inevitable parts of any crypto network because they enable its functioning. They do not add new blocks to the blockchain but conduct a verification of these new blocks. Also, they have the power to manage (govern) the blockchain.
One of the big advantages of owning masternode is that you set it up once and then you only get profit. Your participation in the process is not even required if you use one of the masternode services. So, it seems as easy as swapping LTC to XMR, but still, only careful selection of the right masternode coin can help you to get a real profit.
Top 5 Masternodes in 2022
Before investing in any project, you should learn more about its profitability and performance. Here are a few of the most popular masternodes:
Dash is one of the open-source blockchains with native coin DASH that comes from “digital cash”. It is a fork of Litecoin that was launched in 2014. The main goal of the project is to provide cheaper and faster transactions than other projects do. But accomplishing its promising goal is conducted by facilitating a network of masternodes. Take a look at their offer:
- Number of active nodes: > 5,000+
- Minimum investment: 1,000 DASH
- APR: 6.6%
Dash price in mid-2022 fluctuates around $48 per coin. Yet, according to Priceprediction.net and Gov. capital, we should expect DASH to hit $70 by the end of this year.
The ZEN coin is powered by zero-knowledge permissionless blockchain Horizen, which was launched in June 2017. Now it is one of the leading networks in the crypto industry in terms of transaction privacy. It was possible to achieve this by implementing a developed node infrastructure. Check the masternode offer from Horizen:
- Number of active nodes: 44,694
- Minimum investment: 42+ ZEN
- APR: 8%
The price of ZEN fluctuates around $16 per coin in mid-2022. However, later this year, it may cost near $25 according to the reliable price prediction platforms.
Energi was launched in mid-2018 as a next-generation cryptocurrency. Its uniqueness lies in its multi-functioning. It uses smart contracts with self-funding treasury and PoS consensus with highly decentralized masternode governance. The main goal of NRG is to deliver secure and decentralized financial solutions. Energi masternodes feature:
- Number of active nodes: ~900
- Minimum investment: 1,000 NRG
- APR: 25%
A high APR along with a bright price forecast make NRG a good choice for investments. It is predicted that from the current $0.46 per coin, it will rise to around $0.70 by the end of 2022.
Another coin in our list was launched in 2016 as Zcoin (now Firo). This blockchain is known as the first used in national political elections in Thailand. Also, it is the first crypto that implemented the method of preventing third parties from linking an IP address to a transaction (Dandelion++). One of the main focuses of the Firo blockchain is masternodes. Here is the main point for investors:
- Number of active nodes: 5,000+
- Minimum investment: 1,000 FIRO
- APR: 18.5%
According to the technical analysis from a few reliable sources, FIRO is a good investment. The price vector of FIRO suggests that we should expect it to surge up to $9 in 2022-2023.
PIVX stands for Protected Instant Verified Transaction. Launched in January 2016, the blockchain focuses on facilitating highly secure and anonymous transactions. From the technical side, PIVX shares many similarities with BTC, except it uses the PoS consensus method. The functionality of Pivx is nourished by masternodes:
- Number of active nodes: 1,602
- Minimum investment: 10,000 PIVX
- APR: 9.7%
The price of PIVX has plateaued, so many price prediction services forecast around $0.20 per PIVX in 2022.
Do Masternodes Right
Getting profit from masternodes might sound very attractive. But remember that ROI numbers do not promise you a quick pay-off. Everything depends on how many transactions your masternode proceeds. So, you need to read the white paper of the chosen project and inspect the price behavior, trading volume, and so on before investing money.
Nevertheless, owning a masternode can be a good alternative to mining, and you should definitely think about it.