There are different ways of making money in the cryptocurrency market; they include day trading, mining, HODL-ing or participating in airdrops and ICOs. A not too popular method of making money on crypto is investing in or running a masternode.
You must be wondering, what is a masternode?
Masternodes provide a range of specialized functions to all users of the a particular network. Some of these unique functions include performing instant transactions, improving the secrecy of transactions, engaging in governance and voting, among other blockchain-specific protocols.
By putting your servers or CPUs to work, masternodes allow participants to be involved with maintaining the health and stability of the blockchain. For supporting such projects, masternodes are often rewarded for finding blocks as stated within a smart contract, and depending on community support as a trusted masternode, can earn higher rank and potentially more earnings.
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In this article, we will introduce some masternode projects which may be worth investigating for your investment portfolio in 2019, giving a technical analysis point of view.
Dash (DSH)
Dash is the first crypto project to make use of the masternode system which works by incentivizing users uniquely for this type of service. Dash’s custom-made technologies facilitate InstantSend, PrivateSend, governance, and masternode management.
As per Masternodes.online, a masternode grosses a daily income of $20.4629, or 0.1765 DASH, or 0.00374008 BTC. Dash has a total supply of 18900000 DASH, at a current market of $1,019,729,814 USD.
More knowledge on how to set up the Dash masternode can be found on the project’s official website.
In order to optimize your crypto mining and masternodes investment, the price of the coin has to show bullish sentiment.
So what does the technical price chart has to say? Read on to find out.
The weekly price chart of DSHBTC illustrates recovery of DASH on December 17 ’18 via a breakout of bearish accumulation. The pair indicates a bearish collection on April 15 ’19 which is confirmation of a long-term bearish hidden divergence.
Paired against the USD, DASH flagged a breakdown of bullish accumulation on April 12 ‘19, bringing an end to the price surge that started on March 27 ’19.
PIVX (PIVX)
PIVX is another generally successful cryptocurrency project that offers masternode functionality. Here, masternodes are used basically for sending instant transactions, voting, and preventing double spends.
For the user to get started, the PIVX masternode requires that the user stake 10,000 PIVX, making it imperative for any user to put in initial investment in order to sustain this project. Operating a PIVX masternode also demands that the user has, or is using, either a Linux computer or a Raspberry Pi with unique Internet protocol addresses.
Masternodes.online reports that a PIVX masternode returns an annual ROI of 13.49% while the daily income for the cryptocurrency is $2.9559, or 3.6953 PIVX (0.00054073 BTC).
PIVX has a total supply of 56,781,166 with a current market cap of $44,467,406 USD.
A weekly chart view of the PIVXUSD, like the DSHBTC, also signals a bearish hidden divergence which was confirmed by a bearish accumulation on April 15 ’19. This is after an attempt to restore the bullish trend via a double bullish accumulation pattern signaled on March 18 ’19 as shown on the chart above.
A closer look from the daily chart of PIVXBTC also shows that PIVX lost its bullish grip following a breakdown of bullish accumulation on March 21 and April 02 ’19.
ZCoin (XZC)
Zcoin (XZC) is a decentralized crypto network with the aim to achieve top privacy and anonymity levels for its users. It is also one of the first networks to utilize the idea of masternodes.
Masternode.online reports that the annual ROI of a Zcoin masternode’s is 18.36%, while the daily income for a masternode is $3.5345, or 0.5029 XZC (0.00064658 BTC).
Zcoin has a total supply of 21,400,000 XZC, with current market capitalization at $51,583,755.
Zcoin started a bullish trend on March 07 after flagging a triple bullish accumulation pattern, resulting in a swift increase in bullish volatility.
Presently, the pair validates a bearish hidden divergence pattern by signaling a breakdown of bullish accumulation on April 15 and 21 ’19.
Blocknet (BLOCK)
Blocknet is another interesting crypto project. It is aimed at improving the way blockchains work together. BLOCK uses a peer-to-peer protocol which authorizes the transfer of information between different blockchains.
Block has a circulating supply of 5,733,328 BLOCK and its market capitalization at press time is at $14,779,751.
The yearly ROI for running a BLOCK masternode is 17.94%, according to Masternodes.online, with a daily income of $6.2113, or 2.4578 BLOCK (0.00113526 BTC).
Setting up a Blocknet masternode is not so straightforward and requires the user to have a fair bit of technical knowledge. More information can be obtained from the official guide on the project’s GitHub page.
From a weekly chart overview, BLOCKUSD shows strong bullish sentiment after the price broke through bearish accumulation resistance on January 21 ’19. An opposite breakdown of bullish accumulation was also triggered putting the pair in a rising-triangle formation. The current weekly candles of April 22 ’19 threaten the bearish accumulation resistance of 2.793047. If the resistance level fails then we should look out for a continuation of the bullish trend, otherwise, the bears may crash the price below the ascending trend line.
Conclusion
From the above analysis, you’ll notice that the masternode that shows bullish sentiment at the moment is BLOCKNET. This analysis shows that you might want to hedge against the risk of price drop by hedging your masternode investments via short trades. When doing so, we’ll also suggest you deploy protective stop levels for your trades.
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