From simply speculating on Bitcoin to carrying out some complicated yield farming, there are more ways than ever to invest in crypto in 2020. However, it is sometimes difficult for beginners to make an informed choice that combines profitability, simplicity and maximum security.
Faced with this dilemma, the masternode approach could well prove to be an ideal solution: easy to access, not requiring any particular financial or technological knowledge and often being part of exciting projects with high potential, crypto masternodes have many qualities. Among these qualities, the immediate benefit of often sizable dividends will not have escaped the lovers of passive income. So much so that some even see nothing less than the future of savings in this approach.
Warning: This sponsored article is brought to you in partnership with Feel Mining. Crypto investments are risky by nature, do your own research and invest only within your financial capacity. This article does not constitute an incentive for investment.
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It’s done: you’ve discovered Bitcoin! Your first satoshi are well sheltered on a cold wallet (hopefully one of these two). So what do you do now? Well, although you understand that Bitcoin promises a bright future, and could very well prove – once again – to be the best investment of the decade, it isn’t exactly making its holders feel the thrill of a one-way rocket trip ‘to the Moon’ right now. It’s a fact: outside a ‘bull run’ (a massive and rapid increase in price), Bitcoin can be pretty boring!
What about decentralised finance (DeFi) then? Again, through TCT articles or Youtube videos, you have surely heard about the full potential of this new exotic branch of finance. However, you also probably feel that this unregulated adventure offers as much potential for huge fortunes as brutal and instant ruin…
In short – and there is no shame in admitting it – you are at this stage on the path of crypto learning that we all know well: the horizon is full of enticing promises, but the reassuring familiarity of an ISA, a mortgage or life insurance taken out a few years ago are simply bad habits that are hard to shake!
In order to get out of this comfort zone, there is fortunately a crypto product that will allow you to both fully immerse yourself in the ecosystem while benefiting from familiar mechanics such as notions of capital, profits, or dividends. We are talking about masternodes. Although mentioned quite regularly in the Mining Column, it is worth remembering what they are exactly.
On the blockchain, everyone is equal, and it is all about protocol and consensus. Today’s article is not intended to explain to you the differences between the different consensuses: proof of work (PoW), delegated proof of stake (dPoS), proof of authority (PoA), and their many derivatives. The subject is quite technical, and rather dry for those who are only interested in their economic benefits.
Just remember that at the heart of each of these approaches is an ambitious attempt to reach the Holy Grail of crypto architecture: to live up to the original promise of Bitcoin by offering the world networks in chains of blocks that allows the exchange of value or information, in a perfectly decentralised, distributed, secure and scalable way (i.e. able to operate on a global scale and not just among 50 technophiles dotted around the planet).
Striking a balance is incredibly complex, so much so that it is often referred to as the ‘blockchain trilemma’ that the brightest minds in the industry work on full-time.
However, as one of the most promising approaches, proof of stake architecture currently holds the upper hand. In comparison to Bitcoin’s proof of work, this approach lets the network’s own players secure it by locking up a certain amount of tokens. This protocol has its flaws, but it grants the operation of a robust, efficient, fast and relatively energy-efficient network (a common complaint of the Bitcoin blockchain).
In return for their participation in the smooth running of the PoS blockchain, node operators find themselves eligible for rewards, granted in the cryptocurrency they participate in securing. This is precisely the moment when you begin to see the parallel with more traditional financial systems:
· X amount in crypto currency is locked in a Masternode (for the most part, a masternode is a computer server). It is capital, or collateral, or a form of surety.
· In return for this asset, rewards are paid to the operator of the Masternode. We could also talk about dividends, or interest.
This system of dividends will inevitably make you think of well-known financial products such as life insurance. This is one of the great benefits of masternodes: their operation is intuitive. What could be more normal than being paid for carrying out a job to ensure the smooth running of the system?
On the other hand, this approach is truly revolutionary because it works without any trusted third parties. So out go the banks, or any other intermediary of any kind. The architecture is based only on the robustness and elegance of its immutable computer protocol and the virtuous participation of all network participants (even if they are only looking to turn a profit).
There is another difference between this approach and the one we have been accustomed to for two centuries. Even though it is ‘locked up’, you can recover your stake at any time, in a few clicks and without penalty (like any rule, this one still has some exceptions, such as the SINOVATE project that locks up funds for a year). Although the bank forbids you from recovering your life insurance funds for at least seven years under the threat of heavy penalties, you can arbitrate your masternode investment at your leisure. You hold the key to new rights and freedoms in terms of personal finances.
Investment has a holy principle that applies to any strategy whatever its nature, but which is particularly important in the crypto field: diversification! In other words, don’t put all your eggs in one basket and avoid the ‘all in’ strategy, especially if that coin has been touted by some kind of CEO as being the ‘new Bitcoin’ (note in passing that we don’t need a ‘new Bitcoin’, the real Bitcoin is perfectly sufficient).
However, by investing in the field of masternodes, you can use this key principle by positioning yourself on many projects, diluting some of the risk. About fifteen masternode projects are available on the Feel Mining investment platform, all carefully selected for the soundness of the project backing it.
Best of all, Feel Mining offers you this diversification to everyone, even if your funds are limited, thanks to its shared masternode function. This option allows you to subscribe to only a share of masternode, while benefiting from the same levels of dividends as if you had a full one, which is sometimes hard to do (a DASH masternode currently requires more than £55,000 of collateral to operate).
By going with the shared function, you can invest in six masternode projects for just under £1,000 at current prices (the DIVI project accounts for almost half of this envelope, but let’s agree that it deserves it).
So, through masternodes and diversification, this Grenoble-based French company that specialises in crypto mining helps you to take your first steps as an investor in a secure environment. Better yet, with a range of tools and options that are as sharp as they are easy to access, you’ll be able to manage your wealth and start making a profit almost immediately!
Once you have completed your first masternode acquisition on the Feel Mining website, you will have immediate access to an ergonomic and easy-to-read dashboard. This will allow you to see a comprehensive overview of your investments and their growth at a glance.
The interface has no superfluous parts and the explanations on the various options at your disposal are explicit. Just remember that you can withdraw, convert or create rules according to your investing goals. Feel Mining’s ambition can be seen in every aspect of the platform: to offer each member of its community the tools to forge a unique experience, offering everyone the opportunity to benefit from multiple tools.
Do you want to use a masternode to accumulate Bitcoin? It’s perfectly possible. Do you want to generate a passive and recurring income in fiat currency, paid directly into your bank account? Feel Mining offers it. Do you want to make the most of your investment by using compound interest? The company recently introduced an automatic reinvestment tool! Do you think that nothing beats physical gold? Then a new partnership with the French leader VeraOne will even allow you to transform your dividends to physical gold thanks to the stablecoin VRO!
At this point you will probably have started to realise the financial inclusion that blockchain technologies are bringing to everyone. Players in the crypto ecosystem like Feel Mining have been able to add an additional added value, that of ergonomics and accessibility. While Bitcoin may still seem intimidating or difficult to access, masternodes could ultimately represent the best path to wider democratisation.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
|BITCOIN (BTCUSD) ₿||$62,699.04||1.07%|
|ETHEREUM (ETHUSD) Ξ||$3,808.89||1.71%|
|IMM. US (REIT)||$2,682.60||0.37%|
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