Are you an ideal Masternode operator?
Part 1 - A new way to generate passive income
Part 2 - What is a Masternode?
Part 3 - Are you an ideal Masternode operator?
Part 4 - Finding the Perfect Masternode Coin
Part 5 - How to Buy Masternode Coins
Part 6 - Masternode Setup 101
Owning and operating a cryptocurrency Masternode is a great way to earn passive income. You are only limited by the capital you want to dedicate to the investment and your risk profile.
As with all investments in cryptocurrencies, RISK is a big factor. As the CEO of a cryptocurrency company, I've been asked many times for recommendations on which coins to buy. From high net-worth friends to my plumber, I tell everyone the same thing - I don't give recommendations. EXCEPT for this one piece of advice: Only buy crypto with money you are willing to lose. The passive income that you get from masternodes is not the same as the passive income you get from real estate. The initial investment can have massive price fluctuations and if you can't sleep well at night with your investment bouncing down 25% today and back up 50% tomorrow - don't do it. The good news is that if you have the stomach for it, there are massive short-term gains to be made in this market.
I believe there are two types of investors that are ideally suited to become masternode operators. The first is a cryptocurrency enthusiast that has already seen their initial investment mature to great returns. If you own a lot of BTC, converting some of it to masternodes takes minutes (assuming you know how to trade well). I'll cover buying masternode coins in Part 5.
The other type is someone who is seeking passive income and has a high tolerance for risk. If you have a significant discretionary fund and would like to invest in moderately liquid assets that ALSO generate passive income - masternodes are ideally suited for you.
If you want to do-it-yourself then here are the skills you should have (or learn) before diving into operating a masternode.
Cryptocurrency trading - most masternodes offering a balanced reward structure to risk profile are not very liquid. Meaning buying up enough coins to fund the masternode will mean moving the market if you aren't careful with your trades. I've learned some techniques that help buy large sums of coins off the exchange, or over the counter (OTC). More on that in Part 5.
Cryptocurrency security - By operating a masternode, you have to keep large sums of currency on warm wallets that you need to know how to secure - and BACKUP!
Basic Linux admin skills - This one is the hardest to learn if you don't already have it. 95% of masternodes need to be run on a Linux VPS. The good news is the developers of most of the coins provide guides on how to set them up. BUT of the 30+ of these that I have set up for myself and my clients, I know the guides aren't perfect. There are plenty of mistakes and without my Linux background, I wouldn't have been able to set some of them up.
Financial record keeping - Keeping detailed financial records is a concept completely lacking in the crypto world right now. But if you want to stay compliant with your local tax laws it is essential to do right. Before all the hardcore anarcho-capitalists bite my head off - I too believe that Taxation is Theft... but it's the world we live in... enough said.
If you struggle in any of the above skill sets, I wouldn't discourage you from continuing down the path of masternode investments. I offer consulting services through Crypico and Fiverr to help you acquire, configure, and maintain your masternodes.
