Mining, Masternodes, and Staking

Mining, Masternodes, and Staking

Mining, Masternodes, and Staking

If you are technology savvy, mining is a great option. By using your computer’s CPU and/or GPU, you can mine certain cryptocurrencies (BTC, BCH, LTC, DOGE). In return for spending electricity, you receive the coin you are mining.

Some miners sell all, some, or none of their cryptocurrency in order to remain profitable while mining but that decision is completely up to you.

Another option is to create a masternode or to stake your coins. These two types of investing give you a percentage return over a certain predetermined time period.

While some coins are Proof of Work (PoW), some cryptocurrencies like TOMO, ICX, EOS, and ETH (soon) use some variation of Proof of Stake (PoS).

With a masternode, you run the full version of the blockchain in real time to provide security to the network. In order to do this, your computer must always be up and running. Masternodes are very similar to mining except there isn’t as much electricity used.

The other option is staking your coins. With a masternode, you are required to have a certain amount of coins, but staking doesn’t require a minimum. It is important to note that usually when staking or running a masternode, you lock up your coins for a predetermined time period.

We have multiple tutorials on how to run masternodes and stake cryptocurrencies on our YouTube channel. Check them out by clicking here.

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