Various trading strategies involve looking for price swing movements on Bitcoin and alternative-cryptocurrencies (Altcoins) charts. Many trading styles including day trading (short term), swing trading (medium term) and position trading (long term) have evolved over time and are still being developed. Every Crypto trader adopts the style (or combination of styles) that suits him or her and tries to master the art of trading with it. Basically, these involve the usage and monitoring of different charts timeframes (ranging from 1 to 60 minutes for short term, 1 to 24 hours for medium term and 1 to 365 days for long term) of various cryptocurrencies for good BUY entry points (often called price low) and SELL later at a preferable higher price level for some percentage of profit. The higher the chart timeframe, the higher the percentage profit potential which implies longer waiting period for the trader to achieve his profit or exit targets.
Each trading style has its merits and demerits. The short term trader only waits for a short period of time to achieve his profit target(s), but he has to babysit every trade by staying glued to the chart screen and this can cause physical and psychological stress. Also, it has the highest risk because there is a high possibility of suffering significant loss of trading funds within a short period of time due to the very high volatility present in low timeframe cryptocurrency charts. The loss risk is reduced for the medium term trader but he has to wait for longer time to achieve his profit targets. For the long term or position trader, the loss risk is reduced to the minimum but he has to wait for a significantly longer time to achieve his profit targets.
The baseline of these is that irrespective of the trading style adopted, traders are bound to suffer loss of trading funds.
The earlier days of cryptocurrency trading saw low to moderate market manipulation and it was easy and less tasking for even a day trader to trade profitably with little or no technical expertise. Nowadays as crypto trading is going mainstream and the level of awareness among the big investors and market movers is getting higher, the market manipulation is significantly increasing. The implication of this is that the simple and less technical traders may find it hard to make substantial profits in today’s markets. Traders have to equip themselves with lots of technical and fundamental analysis so as to be able to make better trading decisions. As these can be stressful and daunting tasks to do, a trade may still probably go in the wrong direction even after getting all analysis right!!! This has been observed many times in the Crypto markets.
Also, a good example of how strong market manipulation is adversely affecting and frustrating the normal traders was seen in recent months (around july to September 2017) when there were many negative news on Bitcoin which also affected majority of Altcoins and caused FUDs among traders. These caused significant loss of funds in which many traders have not recovered from!!! (including me!!!).
So what if there is an option whereby people can still benefit immensely from the cryptocurrency system with minimal involvement in trading activities?? Personally, I think the answer is cryptocurrency investment. There are many types of cryptocurrency investment, but for the purpose of this article, I will be referring specifically to Masternode investment.
What is Masternode investment??
Masternode (MN) investment is when investor(s) buy a certain or specific required or minimum amount of a cryptocurrency and can be considered as a digital asset. The specific or minimum amount to hold varies for different cryptocurrencies offering the MN system. After buying, the MN investor locks his acquired asset (coins) in a local wallet for a long period of time and sets up a server (personal or 3rd party) to host the MN and keep it online always. For this, he is given a voting right on the blockchain of the cryptocurrency. The locked MN asset helps to stabilize and strengthen the cryptocurrency and its blockchain due to the fact that this asset is out of the market and therefore reduces the available supply. This drives the demand for the cryptocurrency higher and therefore helps the price of the cryptocurrency and makes it valuable in the long term. This implies that the more masternodes there are on the blockchain, the better for the price of the cryptocurrency.
What are the benefits of being a Masternode investor??
Asides from the voting right a MN investor is given, he is rewarded with a strong staking power whereby extra coins are credited to his wallet on a periodic basis. In other words, he is awarded with a share of the block reward. This provides a Return On Investment (ROI) for the MN investor. The monthly ROI can vary from as low as 10% to as high as 100% depending on the cryptocurrency involved and how many masternodes are online.
Which Cryptocurrencies offer Masternode investment??
Although, not all cryptocurrencies offer MN investment, decent amount of them already have the MN system implemented while some are also planning to adopt it. It should be known that a cryptocurrency with MN feature has the tendency to be more stable and performing than its counterparts with no MN feature in the long term.
Firstly, I will briefly analyze two (2) popular cryptocurrencies masternode investments.
(I) DASH maternode (II) PivX masternode
DASH Masternode (As at 06-Oct-2017) | |
---|---|
Lock amount | 1000 DASH |
DASH/BTC ; DASH/USD Price (CMC) | 0.07013540 BTC ; $305.01 |
MN Cost in BTC | 1000 * 0.07013540 = 70.1354 BTC!!! |
BTC/USD PRICE (CMC) | $4339.67 |
MN Cost in US$ | 70.1354 * $4339.67 = $304,364.49!!! |
Current Number of MNs | 4595** |
MN Daily / Monthly Returns | 0.23 / 6.9 DASH** |
Monthly / Yearly ROI | 0.69 % / 8.28 % |
CMC: Coinmarketcap.com
**: (Source: Dash Masternode Information)
PIVX Masternode (As at 06-Oct-2017) | |
---|---|
Lock amount | 10,000 PIV |
PIVX/BTC ; PIVX/USD Price (CMC) | 0.00079328 BTC ; $3.49 |
MN Cost in BTC | 10,000 * 0.00079328 = 7.9328 BTC |
BTC/USD PRICE (CMC) | $4339.67 |
MN Cost in US$ | 7.9328 * 4339.67 = $34,425.73 |
Current Number of MNs | 2275** |
MN Daily / Monthly Returns | 1.40 / 42 PIV** |
Monthly / Yearly ROI | 0.42 % / 5.04 % |
CMC: Coinmarketcap.com
**: (Source: PIVX Masternode Payments Information V1)
Although, new investors in these MNs analyzed above may feel frustrated and discouraged about the present low monthly / yearly ROI, early investors won’t be bothered about it because they acquired the MN when the price per coin was cheap(er)!! Also, the ROI in the early(ier) days must have been higher because of less number of MNs then. Therefore, as the number of MNs increases with time, the ROI decreases!! But notwithstanding, this seems to be slightly counterbalanced by the increase in price per coin.
So, does it mean that presently, if you don’t have 70 BTC or even as lower as 8 BTC, you won’t be able to invest in a good and reliable masternode system??
The answer is NO!! There are many other cryptocurrencies out there with masternode system and are relatively cheap to acquire. Out of many alternatives available, a VERY GOOD and RELIABLE one I will recommend to everybody is MASTERNODECOIN (MTNC) masternode investment!!!
If you are an active member of the popular bitcointalk.org forum, you must have heard and read a lot about MTNC. MTNC bitcointalk community has been developing at a very good rate. The member base activities are increasing and many people are developing interest in MTNC daily.
Masternodecoin (MTNC) Announcement (ANN) thread was opened on the 31st of July 2017 and already has over 170 pages!! MTNC ANN thread and official channels already have more than enough detailed information for interested investors and the developers are always present to solve any queries. Check the end of this article for all useful links.
Masternodecoin (MTNC) Summary (Extracted from MTNC ANN Thread)
Masternodecoin (MTNC) is a blockchain based decentralized cryptocurrency that rewards network participation via static proof of stake. Masternodecoin rewards "connectivity age" instead of “coin age,” thus eliminating abuse from exchanges and users that do not actively contribute to the network. By having a static reward system, the rewards for participation are proportional to the work every active node contributes. This discourages centralization and promotes network health. In addition to static rewards, Masternodecoin implements a masternode network to incentivize large holders, and perform advanced functions such as near instant and private transactions. 50,000 MTNC transaction with 15 block confirmations.
MTNC Specifictions (Extracted from MTNC ANN Thread)
Coin Suffix: MTNC
PoW Algorithm: SHA256d
Full Confirmation: 60 Blocks
PoS Target Spacing: 64 Seconds
PoS Difficulty Retarget: 2 Blocks
PoS Reward: Varied
PoS Min: 1 Day
Total Coins: 100,000,000 MTNC
10,000,000 MTNC burned (Burn address : MXCryptoLifeDotNetBurnAddrXXY9SEys) (More MTNC will be burned after each Airdrop phase).
Block Size: 2 Mega-bytes (MB)
RPC Port = 10085
Port = 10086
Masternode required: 50,000 MTNC (minimum)
Reward: Masternode reward + all fees for transactions contained in the block Peer validated network uptime + POS fees.
Masternodes receive fixed rewards which are probabilistically distributed among peer validated masternodes. Masternodes recursively scan peer node performance, and only high performance nodes with sustained, stable, high-speed internet 5 connections are eligible for rewards. In addition to receiving the block reward, a masternode receives all fees for public transactions completed in a block and for all private transaction pools initiated in the block. These incentives promote continuous connectivity to maintain a high performance network.
Also, Masternodecoin (MTNC) has some inbuilt interesting features such as Private transactions, PrivateSend Basics, Masternode Economy, Dark Send, Auto Backup. Detailed information on these features can be found in the ANN thread.
Below is an analysis of MTNC masternode that I made.
MTNC Masternode (MN) Analysis (As at 06-Oct-2017) | |
---|---|
Lock amount | 50,000 MTNC |
MTNC/BTC ; MTNC/USD Price (CMC) | 0.00002684 BTC ; $0.117074 |
MN Cost in BTC | 50,000 * 0.00002684 = 1.342 BTC |
BTC/USD PRICE (CMC) | $4339.67 |
MN Cost in US$ | 1.342 * 4339.67 = $5,823.84 |
Current Number of MNs | 62** |
MN Daily / Monthly Returns | 600 ** / 18,000 ** MTNC |
Monthly / Yearly ROI | 36 % ** / 432 % ** |
CMC: Coinmarketcap.com
**: These values are subject to daily variations. Check MTNC blockexplorer for more details.
From the analysis above, we can see that currently, MTNC is still very cheap at its infancy stage (11 cents!!!) and a MN setup costs 1.342 BTC which I think is a bargain right now. We also see that the current monthly ROI is attractive at a 36% rate. It won’t stay like this for long time because as more masternodes are being setup, the ROI decreases!!! Even if you cannot afford to buy 50k MTNC now to set up a MN, buy any amount you can afford and keep it in your MTNC wallet for staking to receive more coins!!! A detailed tutorial to set up a MTNC MN can be found in the ANN thread.
Looking for where to buy Masternodecoin (MTNC)?? MTNC is currently being traded on Cryptopia and Novaexchange exchanges. Links to them are pasted below.
Buy MTNC at Cryptopia trading exchange
Buy MTNC at novaexchange trading exchange
MTNC wallet links:
Windows OS: DOWNLOAD
Linux OS: DOWNLOAD
Github page
So guyz, what are you waiting for?? I think this is the best time for you to load your MTNC bag and if possible and better, get that 50K coins and set up your masternode and start reaping the immense benefits of being an early investor!!! Also by being a MTNC MN investor, you won’t be bothered by the many cycles of PUMP and DUMP that is taking over today’s cryptocurrency day trading.
Please visit MTNC official ANN thread and channels below for detailed information and support.
Bitcointalk.org ANN
Official Twitter handle
Official Slack channel
Thank you guys for reading my LONG article and I hope it was worth your time reading!!!
Also thanks to MTNC ANN thread members for supplying me with some current MTNC masternode values I used in this article.
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I like this post. Nice summary of mastrnode investment.