Earn passive income with cryptocurrency

Today, cryptocurrencies are much more than just a way of payments. Through the use of smart contracts and innovative consensus methods, it’s possible to earn passive income with cryptocurrency. Some projects accomplish this through:

  • smart contracts,
  • mining,
  • proof of stake,
  • master nodes

Earn passive income with cryptocurrency
Generally speaking, if you want to generate passive income through mining, you will need to dedicate tens of thousands of dollars in hardware and electricity in order to even stand a chance of making money.
Additionally, it can take many months or even years until you earn your initial investment and begin to make a profit.

Running Master nodes — highest ROI

A master node is basically a server in a decentralized network that has to meet specific requirements to support the network. In exchange for it, it earns regular rewards.

Master nodes typically earn a higher return rate than mining or proof of stake algorithms.

Interesting master node cryptocurrencies

Dash — min. $400k
There is one master node which is currently in the top 20 coins and that is Dash. This makes it one of the most popular coins to operate as a master node and earn passive income. However, given the demand, running a master node on Dash is one of the most expensive with 1,000 Dash required. This is about $400,000 as of now. The ROI per year is rather small at 7% currently.

OriginTrail — no minimum

OriginTrail is a supply chain protocol. There is no minimum amount of coins required to be able to run a node in the network. It’s required that the node has a high uptime and runs in an honest manner. Generally, the more tokens you have, the more will you be able to earn. The returns are dependent on the market and should increase as the protocol gets more adoption. The non-performing nodes can be punished, so performant nodes are expected to be rewarded more for this risk. The explanation of the OriginTrail nodes has been given by Shillman_Crypto and can be found here.

VeChain — min. $30k 

VeChain is a tracking solution for supply chain on blockchain. It supports a number of products including agriculture and luxury goods. There are many requirement levels for running a node in the VeChain network. They required an amount of tokens ranges from 10k tokens to 250k. Depending on the amount locked up you are classified to a selected tier and receive different rewards. An overview of VeChain master nodes is given here.

Now that you have an idea of how a master node works, you may be interested in hosting your own one and generate passive income with cryptocurrency for yourself. If you cannot afford to invest in a full node, you can get one together with like-minded friends or use a hosted master node service.

I am currently validating the idea for a node pool investment fund. You can leave your feedback in a comment below.

Disclaimer: I own stakes in Dash, VeChain and OriginTrail. This post is solely an expression of my opinion and not a financial advise.

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