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Cryptocurrency Masternodes: explained in every day language by shortsegments

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cryptocurrency · @shortsegments · (edited)
$6.80
Cryptocurrency Masternodes: explained in every day language
![1512F95A-2347-4241-8EA5-82853162D763.jpeg](https://cdn.steemitimages.com/DQmQx6qgVJbDLBxjncwj4Qmjgk6Rm4pswSaT9zRQbRWUKps/1512F95A-2347-4241-8EA5-82853162D763.jpeg)

Picture Source: www.cryptofastlane.com

**Cryptocurrency Masternodes: explained in every day language.**

Masternodes are a type of passive investment, which is specific to cryptocurrency. Many people don’t understand what is a masternode. So don’t feel bad if you don’t understand them. I think they are easier to understand if you compare it to a common type of bank account called a certificate of deposit and leave out the technical jargon and technical functions of masternodes. Plus, you don’t have to understand the jargon to understand it as an investment. 

![2B1405E4-8057-4F69-8CD0-80532A84282F.jpeg](https://cdn.steemitimages.com/DQmRyCyJ2qR7cdV1x57E6jkDWY9MK2dctDE2fD61aotHhsi/2B1405E4-8057-4F69-8CD0-80532A84282F.jpeg)
Photo Source MSNmoney.com


**Certificate of Deposit**
In the case of a “Certificate of Deposit” you deposit money into a storage container called an “account”. You agree to keep your money in the “account” and not spend it. The bank uses your money to facilitate other people’s “financial transactions”.  The bank agrees to pay you money called “interest” for using your money. You get paid “interest” based on a predetermined percentage. You get paid “interest” based on a predetermined schedule. You make money every day without any work from you.
You even make money while your sleeping. This is called a “passive” investment.

![A584781B-F43F-40C5-9DC2-779AFD60C657.jpeg](https://cdn.steemitimages.com/DQmVGATgMj7q67eKNGyRNvknRHHyJFZncoNrWr9Rq2m4fWq/A584781B-F43F-40C5-9DC2-779AFD60C657.jpeg)
Photo Source www.cryptocash.com

**Masternodes**
In the case of a “Masternode” you purchase a certain amount of a cryptocurrency coin. You deposit this cryptocurrency coin into a container called a “wallet”. You agree to keep your cryptocurrency coin in the “wallet” and not to spend it. The coin blockchain uses your cryptocurrency to facilitate other people’s “financial transactions”. The coin blockchain agrees to pay you money called “rewards”for using your cryptocurrency. You get paid “rewards” based on a predetermined percentage. You get paid “rewards” based on a predetermined schedule. You make money every day without any work from you. You even make money while your sleeping. This is called a “passive” investment.

Conclusion: As you can see these two types of investments are very similar. This is also why they are popular. Like all investments you could lose all your investment or profit greatly by some 100 or 1000 multiple. This article isn’t investment advice, but a hopefully useful explanation.



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@bearnode ·
$0.05
nice and succinct! Great post
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@emperorofnaps ·
re-shortsegments-cryptocurrency-masternodes-explained-in-every-day-language-20181014t113613879z
You got a 4.10% upvote from @emperorofnaps courtesy of @shortsegments!

Want to promote your posts too? Send 0.05+ SBD or STEEM to @emperorofnaps to receive a share of a full upvote every 2.4 hours...Then go relax and take a nap!
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@frankvvv ·
$0.04
To add to this: there are staking masternodes and proof of work masternodes. Staking masternodes is like you wrote: you just have to keep a certain amount of tokens in a wallet. For a proof of work masternode, you need to keep the wallet online. The blockchain depends in that case on those wallets to keep the network up. I personally only have a staking masternode. I haven't bothered setting up a system that needs to be online all the time.
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@lalai · 
Thanks for the additional information.
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@shortsegments ·
$0.03
Hi @frankvvv
Thank you for your comment adding to the article.
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@lalai · 
This is clear and concise explanation of a complex topic.
Thank you

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@shortshots ·
$0.05
Excellent post, you really did an excellent job here.
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@smallbites ·
$0.02
I agree. A good post.
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@smallbites ·
$0.05
This is the first article on masternodes that I actually understand. Now I want to invest in one. Do you know of any promising ones which are affordable? What do you look for in a masternode coin before investing in them. I realize you can’t give financial advice and this article is just informational.

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@smallbites ·
$0.05
May I rewrite this to keep the information alive!
It’s a great post explaining masternodes!
😊
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