Before I focus on any specific coins I'd like to cover one of the most common questions new users have -

What is a Masternode?

Put simply, a masternode is a full node/computer that keeps an entire copy of the blockchain while helping to perform certain functions that other nodes cannot. In many cryptocurrencies this can include -

• Anonymizing transactions
• Allowing masternode holders to participate in voting on proposals and governance features
• Providing the ability for instant transactions
• Budgeting options

Certain nodes may perform different functions depending on the cryptocurrency, however the ones listed above are common throughout many.

Great! So now you're interested in running a masternode, what do you need?

To ensure stability of the network, a masternode requires you to provide a certain amount of collateral (in other words, you need to have enough of the coin/token to create one). Now this amount varies widely depending on the cryptocurrency, at the top end of the scale (price wise), we have a coin most people are familiar with - Dash. To run a Dash masternode you're going to need 1000 coins.

Now at the time of writing this 1 Dash equals just over $300 USD -

So buying 1000 Dash to run a masternode would cost around: 1000 x 302.09 =

302,900 USD or 40.7 BTC

Not exactly an obtainable starting point for most new users. Luckily for those of you wanting to dip your toes into the masternode world there are many, many (maybe too many), options available.

Using the site (https://masternodes.online/) we can see a catalog of over 300 masternodes.

Now, as a word of caution - Many of the masternode coins/tokens you may find on sites such as (https://masternodes.online/), (https://masternodes.pro/statistics) and (https://coinmarketcap.com/) could be a type of scam designed to deceive users and run away with your BTC, ETH or coins. It may be old but it rings true, if a coin is offering insane ROI (Return on Investment) and looks too good to be true, it probably is. Many new users get caught up in the hype or potential chance to make a lot of money without looking at things such as -

• Coin history
• GitHub page/activity
• The team behind it and what information is available about them
• Planned RIO and reward structure
• The actual technology/purpose of the coin
• Community
• A clear roadmap that's actually achievable

Remember, Do Your Own Research!

Now after you've found a coin you'd like to setup a masternode for the general process for most is as follows -

1. Buy the amount needed for a masternode (for this example we'll assume we need 5000). Where you buy from is dependent on the coin, some more established coins will likely be on larger exchanges, while newer ones may be listed on smaller ones.
2. Download and install the desktop wallet onto your computer (tip: hopefully the coin you've chosen has a GitHub page you can download the newest wallet from)
3. Transfer the 5000 coins you purchased from the exchange to your local wallet (double check the address)
4. Create a new address that will used as the masternode Public Key (most wallets will then need you to send the 5000 coins to the address you created, yes you're sending them to yourself. This is to create the TX( transaction hash) and Private Key)
5. You'll then likely have to do a few command line inputs through the debug console to show the masternode private key that connects your local wallet to the remote VPS wallet and outputs such as the txhash and outputid (this is a general guide so I won't be going into step by step detail of this process however you should be able to find one specific to the coin you're setting up)
6. You'll then need a VPS (Virtual Private Sever) to host the remote wallet. A common one in the Crypto world is Vultr, however with a bit of looking around and sites like (https://lowendbox.com/), you can nab yourself a cheap VPS suitable for running a masternode (there are also websites that can handle the VPS setup for you if you're not confident with a bit of Linux)
7. Once your VPS is running all you'll need to do is start the masternode from your local desktop wallet.
   (Again, this is a general guide for most masternodes - please refer to the specific community of the coin you have chosen)

The most attractive part of this setup (sometimes called a cold node) is that you can shut down your local computer and the VPS will act as the masternode on the network, while any new coins generated are sent to your local wallet and your original collateral (in the example above 5000) is also safe.

Masternodes are a great prospect for many people as they allow you to earn passive income while still keeping your original investment for some great potential gains in the future. Many coins they utilize masternodes also allow users to Stake coins in whats referred to as PoS or Proof of Stake. In some cases you can have a masternode on a remote VPS while then staking the rewards in your local wallet generated by your masternode (to note with Staking however, you often need to have your wallet open and unlocked to generate coins via PoS, therefore contributing "weight" to the network. Your weight depends on how many coins you have, the more you have the more often you'll receive a reward as the network has a collective weight itself.

Want to know more about Masternodes?

A big part of cryptocurrency is having the initiative to Do your own research and discover projects that interest you. Making money is great, but being passionate about a project or coin can help further said coin. Get involved, either publicly or anonymously.

Not sure where to start?

I'll link a few of the more well know masternode coins to get you started. You'll probably find these may lead you to a coin not listed here, and that's a good thing.

• Dash
• PIVX (PIVX is based on a combination of Bitcoin core and DASH, many masternode coins are forked or run on the same code base a PIVX)
• ZCoin
• Blocknet
• Crown

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