Obviously, you will not find in our pages anything other than enthusiasm and optimism about the future of Bitcoin and cryptocurrencies, in terms of their qualities and their extraordinary potential from the point of view of investment and heritage.
The past decade has already made it possible to glimpse its capabilities in this respect, and it is even likely that nothing has yet been seen: the years to come could in reality prove to be the best in an industry just emerging. Thus, learning and understanding today Bitcoin, Masternodes, Decentralized Finance or notions like staking will allow you to be part of a category of investors who will have largely anticipated the finance of tomorrow and will reap the benefits before a majority less lit. In 2020, you are still one of the pioneers!
However, being part of this movement should not imply that you are taking reckless risks by handling new, rather exotic, or even sometimes largely counterintuitive, financial assets. As such, your best initial investment, the one that will pay you the most dividends, will be that of training and knowledge!
Today in the Mining Tribune, we take a few basics to understand how investment in Bitcoin and Masternodes works, through key concepts
Take advantage of 5% on any order (machines included!) Placed on the Feel Mining site with the code TAHITI
This article is offered to you in partnership with society Feel mining. Crypto investments are risky by nature, do your own research and invest only within the limits of your financial capacity. This article does not constitute an incentive to invest.
Invest in Masternode, distinguish valuation, ROI and profitability
When you invest in a basket of stocks in SICAV, or you deposit money on a Savings account, you don’t necessarily want or need to know the details of complex financial mechanisms that drive the system.
The purpose of the article of the day is therefore not to go into technical considerations and to discuss the concepts of protocol, consensus or governance of the blockchain (if you want to know more, you can go and discover the article “Masternode Method“).
Today – and in order not to drown the subject – the rule will be simple: allow you to understand the fundamentals of your crypto investment.
- What you own, and in what conditions you own it
- essential concepts know to understand what you will get from your initial investment
Masternode: The essential to know
Owning, operating, investing in a masternode refers to similar notions: you buy (in crypto and fiat currency) a certain amount of a token (or token), in order to acquire or join a masternode. This masternode is an essential part of the operation and security of a blockchain.
The amount of cryptocurrency to buy is variable from one project to another: from a few dozen, to a few dozen …. thousands of units!
This quantity is specific to each blockchain. This initial investment makes it possible to acquire what is called the collateral (we talk about it in detail a little below).
Some masternodes are inaccessible to ordinary people, because the initial investment is potentially very heavy (for example a masternode Dash – we were talking about last week – requires about investment 70,000 euros (1000 DASH) right now, just buying currency.
This is the reason why Feel Mining offers a Masternode service “sharing”: The company has its own full MN and allows its customers to benefit from the advantages and returns of the project, without having to invest a fortune.
Masternode: understand by example: Energi (NRG)
In order to understand the parameters to take into account if you decide to invest in Masternodes, let’s take a concrete example with the subscription in shared mode of the project ENERGI.
And as you may know if you frequent these pages a little usual, I subscribe to the services in order to know a minimum of what I am talking about.
So I have a share of Masternode Energi (NRG) for just over 2 months.
As you can see, I have 200 NRG tokens, this amount being a fraction of one of the masternodes operated by Feel Mining. I acquired this batch of cryptocurrencies via a VISA credit card payment directly on the Feel Mining website. After validation of this payment, my Masternode NRG immediately began to “work”, and earn me interest.
Masternode: What is the “Collateral”?
The best synonym for “Collateral” is most likely “bail“. This is the amount of cryptocurrency you choose to deliberately immobilize, as part of the operation of the masternode. We could also talk about your “capital“.
This collateral definitely belongs to you. Even if you delegate the management to Feel Mining as part of the masternode operation (there are sometimes exceptions to this general rule, the Masternodes Sinovate for example sees its collateral destroyed after one year, it’s a blockchain-specific device to counter inflation).
Regarding my Energi contract, you can see that my collateral is 200 NRG tokens. This figure will never change (or only upwards, if I decided to subscribe to additional shares, which is very possible given the current prices).
This collateral, you can retrieve it at any time, by removing it from the masternodes, then requesting its transfer to a private wallet (note that fresh are retained if you carry out this operation within the first 3 months of operating the Masternode, see CGV for more details. At the time of writing, these fees were 5%).
Why is this precision important? Currently, “amazing” offers are flourishing, with offers offering to subscribe to shares of masternodes for periods defined in advance (1000 days in this case, they will recognize each other). Beware of these propositions, insofar as they necessarily imply that you are not the owner of your masternode.
At Feel Mining, once your masternode (or your share of masternode) has been acquired, all of the collateral definitely belongs to you and this capital can be returned to you at any time.
“Current Balance” allows you to view all of the rewards paid by the Masternode:
- either from the start of its exploitation if your strategy consists in keeping (“Holder”) long term this currency, in the hope that it will increase in value
- either since the last conversion of this balance in BTC, LTC, or other crypto-assets, action possible directly via your dashboard, and very practical tools if you want to build passive and regular income in Bitcoin, as this dedicated article explained to you.
Masternode: What is “Reward”?
The best synonymous with “Rewards”: Rewards, dividends, interest…
In return for the immobilization of the collateral, the network grants you a reward, in the form of rewards.
On your Feel Mining dashboard, you will see that this reward is credited every few minutes. In all cases, you have access to your reward amount per 24-hour period. Note: this information is indicative and is not contractually guaranteed, as it depends on broader parameters over which Feel Mining has no control).
As it happens, my NRG masternode has allowed me to passively collect 0.1992 NRG in the past 24 hours.
The equivalent in fiat currency appears under this first figure, i.e. 0.43 euros at the current price for a day of operation.
Masternode: What is “ROI”?
Among the recurring questions, those concerning the “KING”Have a special place.
ROI is the English acronym for “Return on Investment”, in good French, Return on investment. This figure is expressed in% and it varies from one project to another. In the case of the NRG blockchain, this rate is currently set at 39.2%.
This percentage will simply result in the total cumulative amount of rewards over 1 year, in the cryptocurrency in which you have invested. Please note: this is not NOT the amount of interest in fiat currency that you would have invested initially.
Example : you are buying today, April 4, 2020, a collateral of 200 NRG, priced at 556.28 euros, according to our illustration of the day.
In 1 year, April 4, 2021, you will be at the head of 200 + (39.2% of 200) = 278.4 NRG tokens.
On the other hand, the price of the NRG token constantly fluctuating, it is very unlikely that you are the head of 556.28 + (39.2% of 556.28) = 774 euros. Unless improbable statistical luck, this amount will be different and will depend on the price of the NRG token on April 4, 2021.
Everything will then be a question of strategy
- is regularly convert your rewards in BTC, as mentioned a moment ago
- either keep your rewardsthus increasing your capital
Masternode: fluctuations in the price of cryptocurrency, an important parameter
It is essential that before embarking on the fascinating adventure of crypto investment you have understood that you will be sailing in tumultuous waters, towards a continent that remains to be discovered.
A very beautiful image to remind you simply that in this matter, theuncertainty reigns and that your potential gains (or losses) will not be conditioned solely on the announced ROI.
Currently, the price of the NRG Token is 2.26 euros and has seen a nice increase in recent hours.
In 365 days, nothing and no one can know what level of course NRG will have reached….
Will the token be 4 euros? 10? 150? Everything is possible and nothing is certain. Will it go back to 9.14 euros, its June 2019 high? Or, on the contrary, faced with a major pitfall will its value drop to its lowest of 0.22 euros in September 2018!
The only certain thing is that in 365 days I would have 278 NRGs, rather than 200 today.
If these 278 tokens have less cumulative value than my 556 euros of initial investment, I will only have wait a little longer for the next bull run !
And if the NRG finds its best historical price, well I would be at the head of the equivalent of 2266.72 euros, or a capital gain of 400% on fiat conversion.
Masternode: what are the “Service Fees”
In its business model, Feel Mining is paid on the rewards of its customers. It’s an interesting approach, because it means that to make some money, society must do everything for its customers to gain a lot!
Furthermore, when you subscribe to a masternodes offer on the site, you should not be surprised at the differential between the formal value of your quantity of tokens and the proposed price.
Operate a masternode at a cost (not negligible) and requires skills, time, energy, as well as logistical and even real estate resources (server management and storage, performance management, maintenance, 24-hour monitoring, etc.). All things generally beyond the reach of the individual, and that only professionals experienced in the exercise are able to take care of.
Thus, this differential covers the added value of Feel Mining: allow you to worry about nothing, other than determining your investment strategy, in an environment ergonomic and secured.
Understanding the profitability of Bitcoin
If the purpose of this article in the Tribune du Minage is particularly devoted to the presentation of the mechanics of Masternodes from an investment perspective, it is impossible to close without also mentioning the King of digital currencies, the boss Bitcoin !
You probably know by now, if the Bitcoin network does use masternodes, these do not make their operators receive no reward. Useless therefore to seek any profitability on this side.
Regarding Bitcoin – and in addition to buying outright for trading or holding purposes – only the establishment of a mining strategy will be able to allow the investor to have recurring income.
Other articles in the Mining Tribune go into detail on these different strategies and you can usefully refer to them.
- You can buy and operate (or have Feel Mining operate) dedicated machines and benefit from them. From purchasing to setting up and operating daily, society takes care of everything.
- You can subscribe to a cloud mining contract. In other words, ask to benefit from some of the firepower of Bitcoin mining from Feel Mining for your own benefit.
These two approaches are both the simplest and the most profitable to quickly set up a Bitcoin profitability plan.
A word from Chloé, CEO of Feel Mining
“In this period of confinement, many people are surfing the net, and some are discovering the world of cryptocurrencies. In order to meet their expectations, we decided to open our chat on wider time slots namely 9 am – 11 pm
Paradoxically, this confinement creates a bond, people are looking for contact, discussion, this human bond which is no longer authorized for us at the moment but at any cost, transcends the barriers of quarantine!
So we decided to be even more present because we have the CHANCE to be able to work still behind our screens.
From these many hours of discussion, a glaring observation has been highlighted: There are far too many confusions between the different terms of this ecosystem which presents its own lexical field. Sometimes even, misunderstandings appear, which do not allow to answer correctly.
We therefore thought that recalling the fundamentals of the lexicon would be of great help, before embarking on the adventure of peeling, explaining with more accessible words in order to make more transparent an environment which can sometimes seem opaque.
I hope that thanks to this article, the notions of ROI, COLLATERAL, REWARDS will no longer have secrets for you! “
Take advantage of 5% on any order (machines included!) Placed on the Feel Mining site with the code TAHITI
Nice to meet you, it’s Hellmouth! Editor-in-chief of Bitcoin, the crypto media you are honoring to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than supporting the global adoption and democratization of the treasures that the blockchain offers us.
I write articles between two cocktails in Tahiti, my adopted island, and do not hesitate, if the opportunity arises, to feast on a plump scam or a little too enterprising Ponzi pyramid.
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