The cryptocurrency market is a versatile place. One of the major benefits of crypto is that it provides a means of getting passive income by staking, liquidity mining, lending, or running a masternode.
In this article, we take a closer look at masternodes and how they work. More importantly, we will provide you with a masternode coins list that should give you an idea of the top assets that are worth monitoring in this niche.
Masternodes are crucial players in the blockchain space, as they verify and validate transactions on the network. Unlike regular nodes, they can complete advanced transactions such as direct transactions or private sends.
Running a masternode requires locking up a significant amount of the cryptocurrency on the network. Because of this, many mistake masternodes for staking, but the two are completely different concepts. Masternodes can run on both PoS and PoS blockchains.
Since masternodes receive incentives for providing work, it can be quite profitable to run a node on one of the blockchains that support them.
As mentioned previously, masternodes can do a wide variety of actions on the network that regular nodes can’t. This includes increasing the privacy of transactions or enabling instant transactions. For this reason, many privacy-focused cryptocurrencies support masternodes.
In addition to providing privacy, masternodes can be quite profitable. Incentives can provide 5-20% annual percentage rates in relation to the amount invested, which is a considerable profit even for crypto.
10 Masternode Projects to Go for in 2022
Below are some of the most prominent masternode blockchains that provide decent returns on investment.
Required coins: 1,000 FIRO.
Firo is a privacy-centered blockchain that uses the Lelantus privacy protocol to hide transaction data on the blockchain. Previously named Zcoin, this protocol allows users to burn coins during transactions and receive new ones that have no transaction history.
Required coins: 10,000 PIVX
Another privacy coin, PIVX is the coin created and licensed by MIT scholars. Its goal is to provide full financial data protection to its users by hiding transaction data. While it was initially forked from DASH, PIVX has undergone major modifications and now runs on a proof-of-stake protocol.
Required coins: 1,000 DASH
Dash is one of the oldest cryptocurrencies on this list, as it was forked from Litecoin in 2014. This cryptocurrency provides a more democratic approach to mining than bitcoin and increases the transaction speed tenfold. It also has an opt-in privacy feature, which has allowed it to avoid regulations in certain countries.
Required coins: 100,000 SYS
Syscoin is a blockchain that has smart contract capability. It allows developers to deploy decentralized applications and plug into the growing Web3 ecosystem. It uses a dual chain architecture, where transactions are executed on one chain and rolled up on the other, providing high scalability.
Required coins: 20,000 ION
ION is the utility token of the Ionomy crypto exchange and is used to pay for the fees when trading on the exchange. The masternodes on Ion form the 2nd layer of the network, providing higher scalability as well as rewards from transaction fees.
Required coins: 1,001 NRG
Energi is a proof-of-stake blockchain with smart contract capability. It boasts a self-funding treasure and 2 layers to improve the scalability of the network. Governance of the masternodes is completely decentralized.
Required coins: 10,000 PHR
Phore focuses on fast transactions, providing an infrastructure for micropayments that are needed in everyday commerce. The platform allows for transparent or private transfers, allowing users to hide their data when interacting with others.
Required coins: 25,000 WGR
Wagerr is a blockchain sportsbook that provides privacy-enabled betting functionality for its users. The platform distributes a portion of the winning bets to the Oracles — nodes that hold a copy of the blockchain and help with validating transactions.
Required coins: 100,000 PNY
The Peony blockchain provides a value-transfer infrastructure for the agricultural industry. Its goal is to provide a fairer ecosystem for agriculture, where consumers can directly source their products from the producers themselves.
Required coins: 10,000 BECN
Beacon is a US-based project created in 2018 that describes itself as a platform for democratizing cryptocurrencies and educating people about their benefits.
Grow Your Portfolio with Top Masternode Coins
Running a masternode can be quite a profitable venture if you know what coins to invest in. Get started by purchasing one of these coins on an anonymous cryptocurrency exchange to get to the threshold for running a node.