Things you must consider before investing in masternode coins
Things you must consider before investing in masternode coins
If you have read our article about masternodes, by now you have to appreciate the advantages that are associated with implementing and investing in masternode coins. But, you must not rush into it right away, only if you’re OK with completely losing your digital wealth.
We encourage you to think of cryptocurrency as a world itself; there are countless things to be happy for, things that bring a lot of profit and so on. But, unfortunately, there’s always room for the bad. That said, you need a detailed plan of management of the risk/reward ratio. And we’re alerting you from the beginning that this ain’t easy at all especially if you’re new in this ever-growing space of cryptocurrency.
As we’ve already mentioned Masternode coins are not still a well-understood idea, creating room for some bad people to cause harm to others with the intention of running away with some wealth in their wallet.
Being aware of these malevolent activities well in time it is important because it teaches you to have tangible expectations over your security in the block chain so at the end you can avoid scenarios where your investment will slip into a complete fail.
So how to avoid these scams and what measurements you can make before deciding to land in the world of masternode coins. What are the things you need to consider to pick up a coin to invest in and what rewards can you expect in return?
Let’s jump into it
The mission of the project
It is of a crucial importance that you grasp the overall idea about why a project in masternode is created at all. Usually, when such project has launched, a document known as whitepaper is attached to it, explaining into details what the project is all about, what are its optimal goals, how these goals will be achieved and what will the outcomes be.
It happened that many investors did neglect this stage, jumping straightforward in investment, just to understand later that they have invested in a scam project which only made rich its creators.
The mission of the project must be real and perceivable. On one occasion there was a masternode project whose mission was said to be the sending of a probe in Mars and few other with such unreal goals. On the other hand, a model of a reliable project can be one whose mission is to collect funds for charity.
Know the community
It doesn’t all rely on the whitepaper. You also have to carry out a little research for the developers and other members of the community of in that particular project you’re willing to join.
It may happen that the mission of the project may seem real and achievable, but its creators are totally fake. Commonly, there’s a list of developers shown in the project and relevant information related to them like social media accounts.
We suggest you do a scanning of their social media profile and activities to conclude if they’re real users.
Know the metrics
You must also know what to expect in terms of financial outcomes from your investment in masternode coins. To be able to do such helpful calculations prior to your bet, you must first look at some metrics.
Basically, you want to know the overall coin supply in the project, an average block time, the total blocked reward, the required amount of coins to get a masternode, the Return of Investment rate (ROI).
Note that if this information is not accessible can be an indication of a possible fraud in the masternode project. Being aware of this, in our comprehensive list of masternode coins we’ve provided a useful information about these indicators to help you carry out effortlessly your research.
Normally, the project offers a graphic of how the reward proportion (or emission rate if you will) has changed through time. Having a general picture of how this feature has fluctuated, helps to a certain degree to gain a perceivable sense of what the rate of reward will be.
With all these in mind, it is easy for you to approximately calculate how much you’ll earn on daily basis. Take the average block time and the reward portion it belongs to you for every such block. From there you can easily calculate the total coin emission for that day.
Next, you must know what portion of this total reward belongs to masternodes, part of which you’re too.
Finally, you can find the ratio between the reward belonging to all masternodes and the total number of masternodes which represent your personal coin profit.
An important note: Your evaluation at this point must not rely entirely on one of the above factors, which has been the case (unfortunately though) with many investors. Rather you have to take all of them into consideration and still be aware that these are just a probabilistic approach. And you don’t really need to be told that cryptocurrency is a dynamic field and changes can escape our perspective. This brings us to another point in masternode investments.
Be willing to lose your investment
One cannot ever assure you one hundred percent that you’re going to make your money work for you by investing them in cryptocurrency or in masternode coins specifically. And this doesn’t have to do always with scam masternode project developers or even your management skills, but in a way, it’s an inherent part of the cryptocurrency world. You can have some fact-based expectations, but you cannot predict precisely.
So, before deciding to invest in a masternode coin you must stick with the possible loss right at the beginning to avoid any emotional pain in case your investment has this epilogue. And this brings to the final thing you need to keep in mind when planning to invest in masternode coins and will largely help you with this.
Gain a profound knowledge in masternode coins
In a way, this point encompasses all of the above points. And although for many of you might sound like a no-brainer it’s actually an issue to many. We have seen that many people get really excited (we all do, indeed) with cryptocurrency, and jump into it without having a clear idea what this thing is. Partly, this is due to the thing that they have heard about people getting rich within a night from cryptocurrency and now they rush into this area. So our advice for you is to really understand the main concepts and how do things work in cryptocurrency. You can achieve this if you keep yourself engaged with expert teams like ours who possess professional competence and experience to teach you about cryptocurrency, particularly masternode coins.