Passive Income with masternodes and staking

Recently I came across the idea of Proof of stake (POS) and Masternodes, and I thought why not dig deeper into this gigantic passive income opportunity so here some info I decided to compile.

Note: Disclaimer, only invest what you can lose and always do your own due diligence. And take care about Shit-coins …

Proof of stake (aka POS) cryptos has many technical benefits but apart from that some proof of stake cryptos also give different economic benefits/dividends to its HODLers by giving them the option of running a masternode or staking their coins in a stake-able wallet.

To simply put into perspective i.e you can earn by just holding many POS cryptocurrencies.

This provides dual benefits of securing the blockchain network as well as creating an opportunity for users to get incentives or dividends on their holdings.


“Distributed consensus simply means a large pool of people who are geographically segregated agreeing on something. In cryptocurrencies like Bitcoin, ‘something’ here means agreeing on which transactions or blocks are valid and which are invalid to be added/rejected to the blockchain.


Proof of stake is a typical computer algorithm through which some cryptocurrencies achieve their distributed consensus. It is also a better alternative to the proof of work algorithm by achieving the same distributed consensus at a lower cost and in a more energy efficient way.”

So if you are holding any such POS cryptocurrencies, then I think you should know how to start earning dividends by staking them in the right wallets. And if you are not holding any such POS currencies, then you should start looking into them, as they can be an excellent source of smart passive income.


1. Staking

Investing in Masternodes can be quite expensive and not all PoS coins have masternodes. So you can also earn from staking coins, the more coins you have the higher the stake reward.

Good Link :

2. Masternodes

Masternodes validate all public transactions seconds by communicating each transaction across all nodes on the network to prevent double spending. Running a masternode can be quite profitable. In order to run a masternode you need minimum amount of coins for that particular cryptocurrency in your wallet.

References to track them :


3. My Thoughts

Staking POS currencies is definitely one of the smartest ways to earn passive income. And in many currencies, the entry barrier is low to get started.
I believe 1% to 5% free reward is not bad at all for literally doing nothing and just keeping your wallet open.

Also, when I think of negative and zero interest rates in some countries like the US, then cryptocurrency staking is much more profitable.

There are few more currencies such as NXT, PAY, etc. that provide staking rewards, but the rewards are so low that I didn’t feel it worthy to list them. On the other hand, there are currencies like DASH and PIVX that provide rewards only to masternodes that are staking a minimum of 1000 DASH units & 10,000 PIVX units respectively, which I believe is a very hefty investment for many.

Reference : 1.

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