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18.10.2018

How to setup your masternode

There is a certain stigma surrounding all things crypto in that it is super technical and requires a certain skill set to crack. But this is simply not the case, and the faster developers and enthusiasts can dispel this myth to the public, the faster rapid adoption can succeed. For those of you who are still not feeling super confident navigating all things crypto, the purpose of this article is to tell you that it can be done.

Here I’m going to give you the knowledge and provide the steps for setting up your very own masternode. Having your very own masternode is a great way to earn a passive income while supporting some of your favourite coins.

 

The following guide offers a quick step by step overview of the masternode setup process. It is recommended reading for those interested in setting up their own masternodes but are unsure of where to start.

 

What is a masternode?

 

To put it simply, a masternode is a computer that plays an important part in supporting the integrity of a particular coin network. As cryptocurrency is both decentralized and distributed in nature, it relies on different users running nodes all over the world. A masternode is a full crypto node that hosts a copy of a coin’s blockchain network running full time. In return for hosting a coin’s blockchain, masternode operators receive crypto currency as a reward for their important work.

 

In addition to the financial incentive of running your own masternode, masternodes also contribute considerable value to a coin’s network by performing critical functions such as increasing the privacy of transactions, allowing instant or near instant transactions, and they allow operators to participate in network governance.

 

Getting started

 

To get started, all you need is some free time, a PC, capital, and access to a credit/debit card. The first step is to decide what kind of masternode you want to create. The most popular and undisputed king of the masternode concept is Dash. With an impressive 11.2% average return on income since inception, it’s no surprise Dash continues to reign supreme.

 

Once you have decided which masternode to run, convert your fiat or crypto to that coin. To do so, you must use one the many existing cryptocurrency exchanges. recommend one of the quickest exchanges, Xchange.me. There are now many different coins’ supporting Masternodes, each with specific funding requirements to setup their respective masternode, in any case you should definitely consider buying slightly more than the minimum in case of exchange fees or other hidden fees. Running a Dash masternode, for exmaple, requires a minimum of 1000 Dash to operate.

 

Downloads and installations

 

The next step is to download and install the latest wallet from the coin provider’s website. For example, you can find the latest Dash wallet at https://www.dash.org/wallets/. Once installed, fire up the program and make sure to override any security pop-ups. Now take a break, as it may take a little while for your new wallet to fully synchronize with the network.

 

Synch it up

 

Congratulations, you should now be fully synced with the network. The next step is to send your new coins to your wallet. Make sure you have a masternode address in your wallet, and send your coins here. This will allow you to access your important private key and transaction information needed for the next setup step.

 

VPS and Setup

 

Next you need to decide how you will host your masternode. Unless you happen to be sitting on a bunch of unused computer equipment, your best option is to use the most common method of running a masternode and that is through a virtual private server (VPS). A VPS can be rented from a provider for a minimal monthly rate. Vultr is a popular VPS that costs about $10 a month per masternode. To use Vultr, set up an account at www.vultr.com. Once you have VPS account, deploy a new server; then choose a location closest to you; choose the type of server, preferably Windows; and finally, choose the size of the server you wish to employ.

 

Once your server is up and running, synchronize all your software to the blockchain by starting the masternode ‘daemon’ at the server. This includes sychcronizing the masternode wallet with your own desktop wallet. Then set up the masternode within your wallet and start it up. Once the masternode setup is complete, you can begin collecting your block rewards.

 

Where to look for coin-specific instructions

 

This guide has provided you with the basic instructions of how to set up your very own masternode. If you are serious about this project, then the next step is to find a more detailed, coin specific guide. These guides can usually be found on the specific coins website or by visiting relevant social media channels. Good luck!

Read more:  Masternodes: How do they work?

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