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best vps masternode

Today we gonna go over masternode real quick and the basic overview that how we can analyze the best VPS for masternode in which you should be investing.

What is Masternode

Masternodes are essentially servers on which the decentralized network of whichever currency of that particular masternode is and what they are utilized for are features such as direct send or insta-send for instance and more private transactions all over the network and this is kind of where things get a little tricky

Because people assume which is never a good thing to do that a masternode means that you are a proof of stake coin when in fact this isn’t typically true and across most of the cryptocurrencies that support masternodes this isn’t true at all.

They are mineable coin as well, so of the top of my head is Pearl which is coming out with masternode system and they are on ET Hash and then we have desire as well which runs on neo script so these are a couple of examples of masternodes that are not just completely used for proof of stake.

In other words masternodes is kind of hodl where you not only have invested in the coin but now you’re putting that investment to work for you while you sleep as we all know the best way to sustain an income is to make your money work for you so this is just putting the money which you have already invested to work for you again. So while the coin is increasing in the cost you also receiving a return on investment.

Now the only factor that you take into account is that how you’re going to host that masternode.

So most masternodes are hosting on ubuntu servers so head straight to ubuntu server so you have to get a little bit familiar with Linux command line.

It’s not that difficult, we’ll go over this in another blog post. But what that you essentially means is you’re going to pay a lot with hosting fees, well tbh it’s not that much. Well generally renting a server will cost you 10 to 20 bucks a month. I guess that’s not a big deal but even if you want to save that money.

Now here is option of going to your ISP and requesting a static IP which I’ll highly recommend looking into because they are not typically much more expensive than having a dynamic public IP and in that case you can host it out of your home as long as you are at least little bit savvy with whatever firewall security going on etc.

In addition to that, if you run a server in your home for masternode, it will be a hassle as your server must have to run 24/7 in order to do that. Plus your internet connection should be up all the time along with it. Ps. dun forget the electricity and hardware cost.

So I believe the best option is to go for a VPS.

When people are asked that which vps they use I see a pretty much a 50/50 split at least the crypto world of the digital ocean or Vultr. I have heard great things about the digital ocean.

Talking about price it exactly the same, you can pay both of them with crypto.

Masternode Requirements

1- Collateral of Coinsbest vps for masternode

A lot of the masternode, in fact, the majority of masternodes cryptocurrencies are proof of stake currencies and that means you can sneak the coin for rewards on the network.

Now if you want to become a masternode which is a little bit more than a just a node then you have to sneak a certain amount of coins and in DASH, for example, you should have 1000 coins in order to run one. In PIVX it is 10,000 coins I believe.

So once you got that required amount of cryptocurrencies in your collateral you can move to the second step.

2- Virtual Private Server

It needs to be up and running 24/7, you gonna need storage space to save the blockchain. You also gonna need a dedicated IP address.

Another good thing about using a VPS is that you can host more than one masternode of the same type.

But you have to have separate IP address in order to run the same type of masternode, however, it not necessary if both are not same, for example, a DASH masternode and a PIVX masternode as they are both on the different network so essentially that’s how it works. I have also created a list of vps servers which accept bitcoin. For this specific blog post in consideration below are the most suitable ones. 

Best VPS for Masternode

Digital Ocean 

digital ocean masternode vps

Well very first one in the list is the most renowned brand Digital Ocean, they have been selling hosting services for quite a time and made their good name. Their setting up process is not very difficult and you can scale up your hosting plan whenever you like, without getting offline. 

Deploying a new vps is one click away just select your desired Linux flavor and select the type you can either use the pre-built app or if you wanna go from scratch so you can also choose droplet size and specs. You can choose any datacenter from 8 regions that mean you got a lot of choices. 

One click apps are the normal traditional one so nothing new but you got it here. 

Talking about the pricing thing so yeah dollar value is good here you get about $0.007/hour rate. This is the smallest plan you can hop in. btw the more money you put it the better value you get. So obviously they got a bigger and better plan to fulfill your need. But in my opinion, a $ 20-month plan which packs up with 4gb of ram, 2 vCPU, 60 GB SSD disk space and 4tb bandwidth is good to start with and is the most popular one. 

When you get comfortable with this plan and wanna scale it up you can do it without any hassle, you can do it via a couple of clicks in the dashboard. 

The best vps for masternode which is widely used is Digital Ocean that’s what I have seen on different forums, people use it so they recommend it. Otherwise, it takes no time to abuse one’s service.  

Well back then Digital Ocean was not accepting Bitcoin and other major cryptocurrencies as a payment method but now they are using bitlaunch.io as their payment processor so yeah you are hearing it right, now you can also pay via bitcoin. 

If you want anonymity so you got it. The only thing you need is an email address, in order to register.  

So now here is the catch register now and get $100 in Digital Ocean Credit, this the offer you can’t deny. 

 

buy vps for masternode

Vultr

vultr masternode vps

Back in days when Digital ocean is not accepting bitcoin as payment so Vultr was peoples choice. But now Vultr, Digital Ocean and Linode all of them are using same payment processor to process cryptocurrency payments. 

Comparing it with Digital ocean. Vultr pricing is a little bit higher but they are providing automatic data backup and DDoS protection which in the end justify the price. So a little bit here and there but it worth it. 

Disk space and data transfer are lower than what digital ocean offer but it doesn’t matter when setting up a masternode. 


I got a special offer for you guys, use promo code VULTRMATCH top $100 and get $100 more, this is a limited time offer. 

buy vps for masternode

You can always go for bigger an better so no problem you can go for dedicated servers.

Masternodes Benefits

The first thing is, of course, is the income you get. You get a residual income coming in from them and that helps you survive especially in bear markets such as what we are experiencing at the moment there is blood on the streets.

But, If you got a lot of masternodes, so you are actually in accumulation phase actually but instead of spending fiat money to get back into positions, you’re accumulating from the coins you already own and you already invested in. So that’s a very very important consideration.

The next thing is basically the daily rewards. Now if you looking for actual income than you can trade those daily rewards for bitcoin and then convert it into fiat. 

Dun forget that masternode may grow in value also. So once you invested it in the coin and in a few months down the road. It may be worth more than you originally paid. At least that what we hope and that’s why it’s so important to pick a good masternode. Remember that while picking one that it should not be at its all-time high or near to get discarded by the developers.

Well, it might appeal to some of the people to be part of the community. Normally if you hold a masternode you have a democratic type of power to cast a vote if there is a desi

Masternode Risks

Its potentially one of the highest risks in the cryptocurrency atmosphere at the moment. Because they are selling their masternodes on the hope of good daily returns. So as the money is involved and the team behind the coin you picked is anonymous well then, in my opinion, you should take caution, because of high anonymity of the creators you can’t track them and they can be in the air any moment. There is a huge example of this is like bit-connect. So always pick up those are transparent at the front. Also, dun goes crazy for great return go for a project as stability and consistency is everything. masternode risks

Also, keep an eye on the community form. I have seen a couple of projects in which dev had an argument with the community and they left, so the project left high and dry. Everybody dumps the coin as the reason is gone. So you must frequently keep an eye to avoid potentials lose. 

There are a whole bunch of projects which died in their initial stages. So in order to make money again, they rebrand their project and make it on masternode. Again gather potential investor in a new name and again they are most likely to dump the coin. So you must do proper research so that you can’t get deceived by this kind of projects. Once again do a proper research. 

Another thing to watch for is deceiving ROI, some coins are promising gigantic returns which exactly against nature. One more thing which should be in consideration is low liquidity. Means there are not a lot of people who are trading these coins. Usually, they are on small exchanges like Cryptopia and Cryptobridge. Where 24 hr volume is near to zero or very low. This is the thing you must look for as when you are going to sell the coin there are no buyers. So ultimately will lose your money. 

As long as you are aware of this kind of risks. You are doing good or else you are playing with fire and it’s very very risky.

Choosing Masternode 

First of all, you have to compare risks. If it is too risky than move on there are plenty more to choose. You dun have to take the risk you have to fully confident in what you are doing. 

Remember that this is a pure investment and this is you want to bring value over a period of time. This is not the gamble we are not playing roulette here and sticking all of our money on red. This is an actual calculated investment decision we’re gonna make here. So it necessary to calculate the risk and must look at liquidity. In case that if we gonna get rid of it in a few days time. 

Next thing that you should look for is that it must have a proper use case. That what they are offering and how people are going to benefit from this. Or it is just another privacy coin or a more generic coin with no proper use case and motto.choosing best masternode vps

Even if it has a use case you gotta look into the use case. That it should be a good use-case. Not an idiotic use case i.e sending people to fight alongside Thor LOL just kidding.

So you just got the coin with real use case so now you have to look for the code on GitHub, that it is been updated on a regular basis and what is the development status of this project are the developers working on it if so that’s a good sign so it probably the less risky investment then the project that is been abandoned.

Another thing that you gotta look for is their goals and project see them in the roadmap. That where they are and where it is standing on the roadmap at the moment. Because if there are great things to do in the roadmap. So that is going to add value to your investment. And potentially make your investments grow. So it is always good to be aware of that.

If they have already achieved their goals and projects. Then you have to see that if they are looking to get some partnerships down the road. Because that this is also a factor that plays a huge role in the overall value of the certain project.

Live and interactive community is also a green signal. That the coin you are picking has a community backbone and people are there. You can dig out the information form them which is usually not available on the website. If in case there is no community and there is nobody talking about it. Then it is a warning sign for me.

Final on this list is the trading status that how liquid is it first of all and is it traded on regular basis. How much volume is going through on the daily basis? What exchanges is it on? does it plan to go on more exchanges? does it plan to get listed on a major exchange? all of this is important. If there is more than normal liquidity then it is not a good sign too, typically it means that sooner it is going to have a massive dump. If it is traded normally on exchanges on daily basis with normal volume then it is a good sign that it’s not only the masternode for which people are there.

How to setup a masternode

Now we or on the stage where you have already chosen your masternode coin on the basis of the above information. So you have to follow a few steps to make your masternode up and running

The very first thing is to get the collateral of the coins. Just see how much you need to stand one. Buy it on the exchanges on which it is traded.

After that, you have to go to its official website and download its wallet on your VPS. Usually, people go for Linux as it is smoother. After downloading the wallet you have to transfer the collateral from the exchange to the wallet. Make sure you back your wallet up and also to back up your private keys as necessary. Keep this information in a secure place.

One thing to remember guys never gives away your private keys or your wallet backup to anyone. Because ultimately then you’ll lose your cryptocurrency then follow the guide available on the website to set up a masternode.

Normally every masternode coin gives a guide to set up a masternode. By chance, if it is not there you can always search it on the internet. Then you stake the coins. The longer you stake the coin the longer your remain active the more rewards you gonna get.

Wrapping it up

I have been in masternode for a while now, some of them are successful some of them are not. Again a bit hit and messier. But they are good in terms of residual income but they are very risky so you got to bear that in your mind. Guys please never forget there is quite a high risk so yeah that basically wraps up this all. 

At last this information is not a financial advice guy this information is only for educational purposes only. So the decision you make is solely your choice and you are responsible for it. But again these things are the things which I take into consideration before going for one. Following the steps and things will lower your chances to get loses I guess. 

Article written by:

I am a software engineer, passionate blogger, gamer. I love to explore new things on the internet. I love to hang up with my laptop all day and night.

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