This step is going to be about Masternodes. What exactly are masternodes, you ask?
Owning and running a masternode is a type or form of staking, but often extremely more difficult to reach, unfortunately.
In order to stake proof of stake (POS) coins, you only need the wallet with some coins in said wallet and left open. After that, depending on the coin, the reward is often calculated very differently.
Sometimes you might perhaps get chosen by your coins age. This means the longer you’re holding your coins, the better chance you have that your coins will sign the transaction. (the older your coins the greater the chance of getting a reward which is proportional to the amount of held coins) This means sometimes you may get chosen by only the amount of coins that you are currently holding (the more coins the greater the chance of getting a reward).
One of the other differences between staking and a masternode is that you can stake some coins with absolutely no minimum at all! Simply having less than a dollars worth of a coin could technically be earning you an income.
However, the returns of masternodes can be even better! The downside to this is that there is often a very large minimum of coins that need to be held for a masternode. At the time of this writing, it would take almost a quarter million U.S. dollars worth of bitcoin to purchase a masternode for Dash!
I don’t know about you, but I don’t happen to be quite that liquid to have a quarter million bucks just sitting there collecting dust. And, I am guessing that isn’t your current situation either.
Sure there are other masternodes you can buy for other currencies. But, these are all still somewhat pricey. (I haven’t seen one below $500)
There is another option you can do to still get all the sweet returns of a masternode without all the upfront cost. If you were paying attention in the last step, you have probably guessed it by now.
We are going to use the strategy of pooling coins for masternode shares. To make things even easier, we are going to use all the websites and programs from the last step in order to accomplish this.
Some of these programs support coins others do not. Some of these programs have features and benefits that others do not like free airdrops as well. Once you start making some profit from some of your staked coincs, you are going to start setting aside about 50% of your profit you are making from staking those coins in the last step.
We are going to move about 50% of the profit you are making on the staked coins over into masternode shares using the exact same websites. You probably want to be staking and making a good daily profit on at least half a dozen different coins before you start moving 50% of the profit over to the masternode shares.
After you start purchasing some of the masternode shares, I would build up several shares in at least half a dozen coins there as well.
Once you have a chance to build up a few good wallets of staking coins in these programs, you should have no trouble getting involved with the masternode pools as well. Once you have at least about a half a dozen of each earning you a good amount every day/week, we are going to follow our same strategy and start withdrawing half of our weekly earning from these coins and masternodes.
It may take a couple months or so to get enough into your half a dozen or so staking pools where you are earning big enough rewards to start withdrawing half of those rewards for the week and moving that profit over to the masternode shares available in the exact same programs. It may actually take even a few more months to gain enough traction with your masternodes to start taking out HALF the earnings you have made from those each week.
However, Once you ARE making enough profit that you can start withdrawing about HALF your profit from both staking rewards and masternode pool shares, you are going to recycle those profits yet again into something even more fun……