Master-node is a concept that increases the security on the block-chain as well as rewarding the Node holders. Master node concept has started with Dash most notably. Dash implemented a system that required 1,000 DASH in order to be an eligible. In today's rate, that's 154,000$ that generates 30$ daily. Of course, the more nodes are in the system, the less payout everyone gets. Dash currently has 6.9% ROI due to being so popular however, there are variety of other coins that offer as high as 10,000% ROI. Master-node space is often perceived as high risk high reward investment since most of people do not have enough funds to get high market-cap Nodes. I will explain; how to spot the scams, what to look for when investing in MN coins and useful links.
- How to spot scams
- Check their website
- Check if they reveal their development team (if legit, they will unless they are community driven)
- Check their Bitcoin ANN page, see if people are calling them out
- Check the development team on Linkedin
- If Dev team looks sketchy and a coin has crazy ROI, stay away
- Here is an example of high likely scam candidate:
</ul> - What to look for when investing in Master node
- After making sure that the coin that you want to invest has passed the scam test that is provided above
- Check their daily volume,
- If it is too high for the market cap, check the previous days and weeks for volume confirmation
- If it is too low, think about how you are going to sell your rewards if there is no buyer!
- Check what exchange they are listed at;
- Crypto-bridge is the bare minimum that they need to be listed at
- If you see any big exchange like coinexchange, HitBTC that's usually a good sign
- Check how many master nodes there is online and how much % of the coins are locked in MN
- The more MN there is in the system, the less ROI there will be
- On the contrary, the more MN means the bigger % of the total supply is locked in MN so the price likely to be more stable
- Check if they have been reviewed by KYD (Know Your Developer)
- https://review.kydcoin.io/
- These guys are also a master node coin that reviews teams and makes sure they are legit
- Here is an example of a legit MN coin with a community driven team and a lead team
- Community driven coins do not have a set dev team, the whole community works on the project such as SmartCash, they do not show their face however, everyone knows that it is a legit project
<li>Lead team means that there is a set dev team that shows themselves on their team page, this adds trust and transparency between the investors and developers such as KYD team;</li>
- Useful Links
- All MN coins and stats here: https://masternodes.online/
- KYD and the coins they have reviewed https://review.kydcoin.io/
*Let me know down below, if you want to see a masternode setup guide or my masternode story*
- Community driven coins do not have a set dev team, the whole community works on the project such as SmartCash, they do not show their face however, everyone knows that it is a legit project
- Check their daily volume,