This is not a blog post about how to invest in cryptocurrency, and should not be taken as investment advice. Rather this post is about investing your cryptocurrency with the expectation of seeing a return. This post is about how Dash masternodes allow you to increase the volume of your cryptocurrency investment.
While there are a number of cryptocurrencies you can invest in, there is really only one that offers an investment strategy. The cryptocurrency Dash pioneered the concept of incentivized nodes. And by running a Dash masternode, you can turn your cryptocurrency investment into a revenue stream.
Before I describe how to setup a Dash masternode, let me talk a little about cryptocurrency nodes.
So what is a node? In cryptocurrency, a node stores the current blockchain (or public ledger) of all transactions for a specific cryptocurrency. The purpose of a node is to connect to other nodes (peers) and broadcast transactions to the network. Put simply, nodes perform services for the cryptocurrency network.
What about mining nodes?
Mining nodes (or miners) perform an additional service of writing transactions to the blockchain. How they do this is not important to this post. What is important is that miners are rewarded newly released currency from the network for the service of writing transactions to the blockchain.
For most cryptocurrencies, miners are the only incentivized nodes on the network. The problem is that miners compete with each other so there’s an ever increasing race for the best mining hardware.
All of the other nodes that are responsible for broadcasting transactions are run gratis. Think about that for a minute. The nodes responsible for broadcasting your bitcoin transaction are being run by people who aren’t compensated. How is that sustainable?
To have a successful and robust cryptocurrency you need a healthy network. And the best way to insure your network is robust and healthy is to incentivize the people running the nodes. This is why the Dash model of incentivizing nodes is such an important advancement for cryptocurrency. These incentivized Dash nodes are called masternodes.
A Dash masternode is a full node that broadcasts transactions, and also performs other important services. If you are interested in learning about all of the features that make Dash an important and robust cryptocurrency, visit the official Dash website at http://dash.org.
The Dash network compensates masternodes by sharing a percentage of the currency released by Dash miners. All you need to setup a masternode is a 1,000 Dash collateral that you hold in your local Dash wallet. Once your masternode is up and running you’ll receive a percentage of the newly released currency on a predictable schedule. Your Dash investment essentially becomes a revenue stream and as long as you are running a masternode, you are increasing the volume of your Dash investment.
Is my Dash safe?
When you run a masternode, you maintain custodianship over your Dash. The Dash remains in your local wallet and that wallet can remain offline most of the time. This puts the safety of your Dash investment in your hands. Locking down your wallet, keeping backups, and only brining your wallet online when needed helps to keep your funds secure.
With Node40, it is easy to setup a Dash masternode. Once you have acquired 1,000 Dash, sign up for an account with Node40 and use the masternode setup wizard. Node40 will launch a masternode for you in a matter of minutes. Once the masternode is up and running Node40 takes care of the maintenance and you monitor your node through the Node40 website.
Still have questions? Feel free contact us. We’re always happy to help.