Best Masternode Hosting Servers of 2024 — Making Money with the Best Masternode Coins

Cryptocurrencies have been around for more than a decade, and they are here to stay. They are, in fact, currencies — virtual tokens, to be more precise — you can use to make transactions, but there are also many different ways to earn more money with them. You can trade, stake, invest, mine, and you can host a Masternode on a server.

Masternode hosting is actually a pretty awesome way to work with crypto coins. However, it requires a bit of knowledge and investment to start. Many server providers offer Masternode VPS solutions, and this blog post is all about what you need for Masternode hosting and how to choose the best Masternode VPS provider.

Before diving into requirements and lists, let me shed light on what a Masternode is and how it differs from nodes and staking.

What Is a Masternode?

Masternode hosting is an effective way to earn money with crypto coins. Basically, Masternodes are servers on a decentralized network. They are slightly different from ordinary nodes as they can be used for functions like direct send or private transactions.

Masternode hosting is the act of sustaining cryptocurrencies and allows operators to have a vote in governance decisions.

The question is, how do Mastenode operators make money?

Unlike regular nodes, Masternodes do not introduce new blocks to the blockchain; they verify new blocks. Since Masternode hosting is a collateral-based system, operators need to invest relatively huge sums of the crypto coin they choose. In return, they are rewarded a percentage of their stake. This system varies from coin to coin; some projects pay operators multiple times during a day, and some only once. But the key factor is that the payment is guaranteed and operators can make money even in their sleep.

Differences Between a Regular Node and a Masternode

A regular node is a computer on a blockchain network that downloads the entire blockchain and introduce new blocks. These nodes are not rewarded for their participation, but they play an important role in maintaining the security and integrity of the blockchain.

A Masternode is a server, set up to perform specific functions on the network, such as InstantSend and PrivateSend. In terms of new blocks, they are responsible for verifying new blocks created by regular nodes. They can do more than just validate transactions and can manage funds and act as a wallet.

Aside from their differences, both normal nodes and Masternodes are essential for a functioning blockchain system.

Masternodes are mainly important for two reasons: security and efficiency. They keep the blockchain healthy by confirming transactions, and they help to distribute new coins so that everyone can benefit from them.

Are Masternodes POS or POW?

As I mentioned earlier, Masternode operators earn money by collecting a percentage of the coins they stake. So, is Masternode a POS (Proof-of-Stake)? Not necessarily. Many POW (Proof-of-Work) projects also use Masternodes. It is true that Masternodes function like POS coins since coins are not mined but staked, but they are not simply extensions of POS coins.

To put it simply, just remember that you can make money through a POS system with a Masternode VPS,but you do not need to stake POS coins to host a Masternode.

What Do I Need to Run a Masternode?

Running a Masternode is like running a small business. Just as you need to have the right tools and equipment to run your own business, you need to have the right tools and equipment to run a Masternode.

In order to run a masternode:

By providing these requirements, you can take a step forward in running a Masternode.

Why a VPS is the Best Solution for Masternode Hosting

Let me get real with you. You can’t host a Masternode on your home computer. A Masternode VPS must be up and running 24/7. For that, you’ll need a top-notch, powerful computer, a fast internet connection with no downtime, and a pocket full of money for your electricity bills.

Basically, you’ll be spending every dime you earn from your Masternode on maintaining your system. Do we want that? Certainly not.

That’s why many VPS providers offer Masternode VPS solutions. A Virtual Private Server is a virtual server you can set up anywhere in the world, and it’s much more affordable than hosting a Masternode on your home computer. VPS providers are known for offering high uptimes and a variety of pricing plans.

Let’s take a look at the best Masternode VPS platforms, and then I’ll guide you on factors to consider when choosing one.

Best Masternode VPS Providers of 2024

I’m talking about NVMe SSD and DDR4 RAM devices. We offer a realistic %99.95 uptime; you will hardly ever feel server downtime which is an essential element of a good Masternode VPS. You can choose any Linux distro you are comfortable working with, and we will provide it pre-installed. No matter what operating system you choose, we will give you full access to your server. Cloudzy also offers competitive prices in the market, starting from $4.95 only. You can use a variety of cryptocurrencies, including Bitcoin, Ethereum, and Tether, to purchase services from Cloudzy.

DigitalOcean is one of the most famous VPS providers, and it indeed charges like one, with their prices starting at $12. You need to pay more for each add-on you choose and there is a limitation on the number of Linux distros you can choose.

As Vultr has the latest generation Intel CPUs and advanced network connectivity, it guarantees consistent performance. Unfortunately, Vultr does not have a refund policy. They also offer their services at high prices, like DigitalOcean. Vultr is primarily focused on offering services for website hosting or WordPress hosting. So, their servers are not exactly optimized for Masternode VPS hosting.

Its fast hardware and scalable environment have made it a user-friendly platform. One big drawback of Linode is its high pricing. They also offer a limited number of Linux distros. Linode is perfect for operators who need enterprise-level servers and are willing to pay the high price.

They offer various features to make sure your node is always online and protected. ree and fast setup are Secured Speed’s other privileges. Unfortunately, Secured Speed offers a very limited number of data centers which results in their services being unavailable most of the time. If you are keen to work with them, you need to set up a calendar and check their website every day for a chance to order a server.

RamNode has been in business since 2012 and aims to provide affordable servers with powerful features. RamNode does not offer optimized servers for Masternode hosting, but you can set up all you need on your own. They also do not mention any information on server uptime, so it might be risky to run Masternodes on their servers.

How to Choose a Masternode Hosting Platform

You now know of the best Masternode hosting servers, their perks, and disadvantages. But how do you choose the right one?

There are 4 key elements to look for in a VPS provider. Putting these features together with your own requirements, like storage, memory, and CPU, can make a clear list of your expectations. Below are features you need to consider:

As a Masternode operator, you are already investing a considerable amount of crypto in your Masternode, so the server should not cost you much. Many providers can charge you up to around $1000 monthly for a high-class VPS. The thing is, you don’t need that. You can get yourself a high-performance server at approximately $10 for a month. If you can find a suitable one below 10 bucks, go for it.

Another factor to consider is the server uptime. Best Masternodes run 24/7, your income depends on it. So. it’s important to find a provider that can guarantee a high uptime. The tricky thing about uptime value is that it can never be 100%. Every data center in the world will require downtime for maintenance, so it’s impossible for all servers to work without shutting down for even a second during the day. If a provider is offering 100% uptime, know that they are straight-up lying. Some providers also do not give you information on thier uptime, which is also sketchy. If they are willing to lie about their uptime, imagine what else they are not telling you. Providers who offer realistic uptimes as close to 100% are those you should be looking for.

Masternode hosting servers work with the Linux operating system. No matter what distro you choose, you need full root access to yuor server in order to install any software and configure the OS for Masternode hosting. If providers do not offer root access, you have to submit a ticket or talk to support agents every time you wish to make a change on your server. Then, you need to wait for server admin approval and then wait a bit more for them to make the change for you. It all gets frustrating and very time-consuming for a simple task.

As I just mentioned, you need a Linux OS for hosting a Masternode. Ideally, you can find a provider that offers managed Masternode hosting servers. That means that the provider will set up the Linux distro for you. If not, you either have to get a Windows VPS, delete the OS (if you have full admin access), install your Linux OS, or get a fully unmanaged server and install your preferred Linux OS.

Best Masternode Coins

As I mentioned earlier, you don’t need to work with POS coins to run a Masternode. But, some crypto coins are more suitable for Masternode hosting than others. These coins are chosen by the following factors:

• The coin's history and development team.
• The quality of the coin's codebase.
• The size and strength of the community.
• The availability of wallets and other supporting infrastructure.

Considering the above points, I want to introduce you to the best Masternode coins:

Read

Best Crypto for Payment in 2022: Apples and Oranges

Benefits of Running a Masternode

Masternode hosting offers a wide range of benefits to operators and network users. Here are five reasons to see why running a Masternode may be a good investment for you:

Masternodes provide a secure and tamper-resistant platform for hosting decentralized applications by verifying transactions and locking them into blocks, which are then added to the blockchain. This helps prevent double-spending and other malicious activities.

One of the other great benefits of running a Masternode is the added stability it brings to the network. You can easily support your favorite coin and help it grow.

Masternodes improve your overall understanding of cryptocurrencies. Even If you feel that running a Masternode hosting platform is a bit technical, there are plenty of resources available online to help you get started.

Masternodes are a great way to earn passive income. By running a Masternode, you can earn rewards in the form of cryptocurrency for supporting the network.

A Masternode requires locking up a certain amount of coins as collateral, and in return, the owner is rewarded with a portion of the block rewards.

You can also be a part of the decision-making process for the network. This is because Masternodes are also responsible for doing important tasks such as voting on budget proposals. They also help to maintain the network's integrity.

Disadvantages of Masternode Hosting

Masternode hosting services are beneficial; however, they are not flawless. Masternodes are a growing trend in the cryptocurrency industry. They allow for increased security and stability by allowing for more direct communication between nodes. However, there are some disadvantages to hosting a Masternode that you need to know beforehand:

First, they require a large amount of storage, which can be expensive to set up and maintain. You'll need to have a good amount of cryptocurrency saved up to cover your costs.

Masternodes also require a lot of time and maintenance. If you're not prepared to put in the work, then a Masternode is not for you.

When you invest in a Masternode hosting platform, you're investing in the cryptocurrency that the Masternode supports. There is always the risk of losing your investment if the coin's value drops too low. So, if that cryptocurrency fails, your investment will likely fail as well.

Sometimes, Masternodes can be less efficient than traditional nodes, meaning that they may not be able to process transactions as quickly or provide the same level of security.

To Sum Up

If you decide to run a masternode, you need to consider all the advantages and disadvantages that comes with it. You need to know all masternode hosting services and choose the best option to secure the success of your masternode. If you're interested in running a masternode, be sure to do your research and make sure the coin you choose has a solid infrastructure and community support.

By following the other tips I have included in this blog post, you can easily find a service that will meet your needs. If you are looking for a masternode hosting platform with the highest quality and lowest price, Cloudzy VPS is the way to go!