9 of the Best Masternode Coins to Invest in 2020

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Everyone in the crypto space wants to find new ways of earning money from their investments. And here in 2020 one of the more popular ways where you could earn a steady flow of income is via staking your coins by setting up a Masternode.

They are parts of many Proof of Stake blockchains but also Proof of Work blockchains. And they could be an excellent form of (semi-passive) income. And to help you learn more about what Masternodes are, how you can get started and the best Masternode coins of 2020 we wrote this article.

Before we head into the list of the most popular Masternode coins to use for staking and earning an income we wanted to explain a bit about the concept of staking and Masternodes. So that you can better understand how it works and if it something you should get started with.

We do recommend it as it could be a great source of additional income with little actual work needed when you are up and running.

Now finally we want to make two things clear to our readers before heading into the list:

  • This list is not based on any specific order. So coin number 1 isn’t better than coin #9. And this is a list of 9 of the best Masternode coins. Not the 9 best Masternode coins 🙂
  • The other thing is that we will provide you with a very high-level description of Masternodes in this guide. It is not meant to be a fully detailed technical guide. This is because each Masternode setup can differ quite a bit. So it is better that you go to each blockchain’s website to learn more if you are interested in the details

What is a cryptocurrency Masternode?

A cryptocurrency Masternode is basically like a computer or a server with a full version of blockchain on it, that is connected to the cryptocurrency’s blockchain and it helps to validate new transactions.

On a high-level we can say that there are few different common types of nodes for some blockchain models, for example:

  • Full nodes (keeps a full copy of the blockchain and on for example PoW blockchains they mine coins and add new blocks)
  • Lightweight nodes (these nodes keep a lightweight version of the blockchain. These nodes verify transactions using a method called simplified payment verification SPV to make sure they can use the blockchain functions (send and receive txs)
  • Masternodes (Their functions differ, but it can range from validating and rejecting transactions, saving, broadcasting and potentially also governing functions as in voting events, and protocol functions

Different types of blockchain nodes

Nodes or Masternodes are common for both Proof of Stake blockchains but also to some Proof of Work blockchains. But they work slightly differently usually from blockchain to blockchain.

Usually, a Masternode doesn’t create any new blocks but they either reject or validate transactions. But this might differ from blockchain to blockchain.

So, in essence, it is helping the blockchain to function, and as thanks for its participation, it gets rewarded. Thus the income part.

In Proof of Stake (PoS) blockchains, you need as a node, Masternode or other nodes to stake your own cryptocurrencies. Hence the name staking. And it depends on the type of node and the cryptocurrency, or blockchain how many coins you need to be able to join in on the staking.

So with Masternode staking, you need to be connected to the internet and the blockchain at all times. That means you can’t disconnect your device or computer. If you would disconnect then you would not be able to validate new transactions and also miss out on the rewards part.

Lastly what is great with Masternodes and staking is that anyone can join in, and you don’t necessarily need to have expensive equipment to run a Masternode. You just need some sort of device or computer, it could be an old computer you have at home, or a Raspberry Pi could also work with some blockchains.

But definitely not all. Some blockchains require much higher technical capacities for the Masternodes to be able to function. So a Rasperry Pi might work for some blockchains but definitely not all

However, the concept of many Masternodes is that it should be easier for people to join in and run their own nodes. But the exact requirements for each Masternode setup is documented on the blockchain’s websites.

Masternodes image

The usual requirements from most Masternodes are:

  • You need to have the device up and running 24/7
  • There is usually a minimum requirement of coins you need to stake to get started (it depends on the cryptocurrency’s blockchain)

But now it’s time to explore the list of the best Masternodes to use for staking and earning rewards in 2020.

(Learn more about how staking works)

9 of the best Masternodes to stake in 2020

To help you pick from the big selection of coins to use for Masternode staking we have written this top pick list of 9 best Masternode coins.

To provide you with a bit of background to how the coins were selected, we explain our thinking.

For us it is important to recommend coins based on a few key things:

  • The return of investment (ROI) rate you will get. Basically how much money will you get back
  • How ‘good’ is the cryptocurrency and blockchain? It is much better to stake a coin that most likely will be around and successful in the next coming years
  • How easy is it to get started running a Masternode

Based on those key aspects this is the list of coins that we recommend to invest in

1. Divi (DIVI)

Divi project logo
Coin Telegraph Co-Founder, Toni Lane Casserly, Joins The Divi Project. Prepares Company for ICO (PRNewsfoto/The Divi Project)

Description

What is Divi? This one is a tiered-Masternode, a tiered node is a multi-level node setup; where each one has a different amount of collateral locked (amount of coins).

So, you can invest with different amount of money, right now, the most expensive tier is around 12 BTC (around $120k) and the “cheapest” one is around 0.16 BTC (around $1,199).

This allows you to invest at different levels, and receive rewards based on your initial investment.

About DIVI

Making the user experience as simple as possible, Divi is the equivalent of Paypal in the crypto-currency world. As co-founders, Geoff McCabe and Nick Saponaro never miss an occasion to remind you that cryptos are meant to be used safely even by your grandmother or anyone coming out of a drunken night out.

Ever since the launch of their own Blockchain, Divi holders can easily participate in the network through staking or by deploying a Masternode… and this without any tech skills. DIVI is a blockchain that has focused on making it easy, and accessible to all.

Within the wallet, those who wish can benefit from the installation of a true 1-click MOCCI (MOCCI = Masternode One-Click Cloud Install). In this case, there is nothing to set up and your Masternode is automatically hosted by a provider.

Getting started

  • You can see more about the project on their website
  • And if you want to set up your own Masternode you can follow this setup guide

ROI and where can I buy some DIVI?

  • The annual ROI of a DIVI Masternode (all tiers included) is 40% on average.
  • The exchange with the most volume to buy some DIVI coins is Bitrue and Crex24

2. Stakenet (XSN)

Stakenet logo

Description

Stakenet is a blockchain that aims to create an ecosystem of cryptocurrencies all met up in one place. Stakenet. This cross-chain ecosystem will help to bring different blockchains together and work interoperably.

About STAKENET

XSN is digital money, like Bitcoin in the Bitcoin in BlockChain, or Ether in Ethereum, because its supply is not controlled by any government or corporation. It is decentralized, secure, scarce, and is used by people around the world to make payments or as a reserve of value.

Stakenet is a PoS chain with Masternodes. Where normal stakers via for example cold staking can join in and secure the network.

And Masternodes can help to validate new transactions.

And both can earn income and rewards for their contribution.

It is the first blockchain with Masternodes to ever be (Bitcoin) Lightning Network ready.

This means XSN has instant, virtually feeless, and unlimited transactions per second, making it more valuable than most other cryptocurrencies whose only use-case is speed or scalability. It is also the first, next to Bitcoin and Litecoin, to ever perform Lightning Swaps.

Getting started

  • You can see more about the project on their website
  • And if you want to set up and run your own node you can follow this setup guide

ROI and where can I buy some XSN?

  • The annual ROI of a Stakenet is 16 % on average.
  • The exchanges with the most volume to buy some XSN coins is Coinall and Livecoin

3. Syscoin (SYS)

Syscoin logo

Description

What is Syscoin?

Syscoin is an international digital currency that allows low-cost, decentralized transactions.  It is based partially on the Bitcoin protocol. It enables financial trade to occur at very low prices, high transaction speed and provides businesses with a solid infrastructure for data exchange and commodities trading.

Each transaction is recorded and stored in the blockchain by a system of nodes.

About the Syscoin

Syscoin is a decentralized marketplace similar to eBay or Amazon, which allows you to sell, buy and resell goods without going through any middleman. Your items always remain online, even when your wallet is closed.

Getting started

  • You can see more about the project on their website
  • And if you want to start running your own Masternode you can follow their official guide

ROI and where can I buy some SYS?

  • The annual ROI of a Syscoin Masternode is 8 % on average.
  • The exchange with the most volume to buy some Sys coins is CoinEx and Binance

4. Blocknet (BLOCK)

Blocknet logo

Description

What is Blocknet? Blocknet introduces itself as the internet of blockchains.

The project developers are convinced of the enormous potential of the blockchain, which is a revolutionary technology for them. Nonetheless, there can only ever be one blockchain.

None of them would be able to support all the data and operations for the whole world. This is why we find a multitude of blockchains, independent and isolated. Blocknet proposes to create a network to interconnect all these blockchains.

About Blocknet

Blocknet is a revolutionary breakthrough in cryptographic technology. It is a peer-to-peer protocol that interconnects the nodes of different blockchains.

This open-source protocol is called XBridge, it is a gateway between the different blockchains.

XBridge allows interoperability between the blockchains and makes it easier and more intuitive to use decentralized applications. KyberNetwork aims to open the real world to the crypto world.

Getting started

  • You can see more about the project on their website
  • And if you want to create your own Masternode you can follow their official guide

ROI and where can I buy some BLOCK?

  • The annual ROI of a BlockNet Masternode is 18 % on average.
  • The exchange with the most volume to buy some BLOCK coins is Bittrex

5. Dash (DASH)

Dash logo

Here it is! The king and the holy father of all Masternodes, despite all those years he is the most profitable and the most reliable one (he’s here to stay!).

The initiative began in 2012 but is introduced to the mainstream public in January 2014 under the name “XCoin”. This new crypto-currency is rebranded a few days later as “Darkcoin”. Ultimately, the name Dash will be introduced in 2015 and will be officially adopted.

The creator is Evan Duffield, a US Bitcoin enthusiast. He wants to use the same protocol while improving it.

In order to promote the Dash project, the community has raised funds to design an airplane entirely with the project’s colors, the Dash Force One. He’s been touring aviation events to promote the Dash project.

About Dash

Dash stands for Digital Cash, it is a decentralized payment system that is based on a blockchain and allows for anonymous transactions. The aim is to make the use of Dash as simple, anonymous, and fast as the use of cash.

This cryptocurrency is based on the open-source code of Bitcoin which has been adapted. Thus, it is possible to overcome some of Bitcoin’s “limitations” (speed, privacy, governance issues).

Dash might have lost in focus in recent times, but it still manages to stay around with a lot of new interest in it. So it deserves to be on this list of top Masternode coins for 2020 also.

Getting started

Note: A Dash Masternode is really expensive, but you can invest in a shared Masternode if you really want to invest in this crypto. Check the link just above, shared hosting solutions are available.

ROI and where can I buy some DASH?

  • The annual ROI of a Dash Masternode is 7 % on average.
  • The most reliable exchange to buy some DASH coins is Binance, Huobi, and Bibox

6. PIVX (PIVX)

Pivx logo

Pivx is a decentralized and open-source network that supports anonymous and secure financial transactions. The name “Pivx” stands for Private Instant Verified Transaction (X).

From the outset, the project has been designed to ensure increased confidentiality and security for each transaction. Initially called Darknet, the development team then chose a name closer to the ideologies and values of the network.

Pivx is the first decentralized platform using proof of issue to ensure such anonymity in transactions.

About PIVX

The Pivx network enables totally anonymous and secure transactions, using the Zerocoin protocol.

A network like Bitcoin will record and display each transaction in the blockchain. The Zerocoin protocol, on the other hand, will validate the transactions without ever disclosing the details. Instead, it will store the data in an encrypted format.

Besides, the SwiftTX exchange system allows you to validate each transaction in just a few seconds, regardless of the amount. The Pivx network operates with very low transaction fees, usually a fraction of a penny. It is therefore particularly interesting for micro-payments.

Getting started

ROI and where can I buy some PIVX?

  • The annual ROI of a PIVX Masternode is 11 % on average.
  • The most reliable exchange to buy some PIVX coins is via Binance, KuCoin, and Bittrex

7. Zcoin (XZC)

Zcoin logo

Description

Zcoin is a private cryptocurrency. It has since its launch become one of the most popular privacy-enabled cryptocurrencies. The Zcoin blockchain is actually a Proof of Work blockchain. But they do also use Masternodes for their network.

With Zcoin privacy and anonymity are the key pillars of their blockchain technology.

ZCoin uses a Proof of Work model called MTP which promotes egalitarian mining while maintaining quick verification.

About Zcoin

Zcoin is an open-source blockchain and cryptocurrency that previously used the zerocoin protocol, but today uses a different protocol called the Sigma Protocol as its main protocol framework.

However there are already plans in place to move to the next generation privacy protocol, named Lelantus. Aimed to bring further improvements to how Zcoin sets itself apart as a privacy coin (learn more here).

Getting started

  • Find out more about Zcoin by visiting their website
  • You can find out more information about how to start with your own Zcoin Masternode or Znode here

ROI and where can I buy some XZC?

  • The annual ROI for your Zcoin Masternode is about 15.40%
  • You can buy Zcoin or XZC at Binance, Huobi or Bittrex

8. Energi (NRG)

Energi NRG logo

Description

Energi or NRG is a new cryptocurrency and Proof of Stake blockchain, that wants to be crypto for the future with smart contracts technology, decentralised governance, and cheap and fast financial transactions.

Energi interesting enough was launched in April 2018 without any ICO and from only outside capital investors.

And what also is interesting is the split between a cryptocurrency, or digital payment means and the smart contract technology that they are going for.

About Energi

Getting started

  • Find out more about Energi by visiting their website
  • Learn more about how to set up your own NRG Masternode here

ROI and where can I buy some NRG?

  • The annual ROI for running your own Energi Masternode is about 17-22%
  • You can buy Energi or NRG at KuCoin or Digifinex

9. TomoChain (TOMO)

TomoChain logo

Description

TomoChain is a new interesting blockchain that is running on a Proof of Stake Voting consensus model. And they boast of having near-zero fees and the almost instant transaction to their roaster.

Otherwise, security, stability, and modern technology are what Tomochain promotes.

With smart contract technology and dApps added to the mix and it is easy to understand that there is a big interest in investing in TOMO.

About TomoChain

TomoChain proudly promotes themselves as the future of blockchains, with the answer to the scalability issues that for example Ethereum is having and then a modern governance structure.

Adding in the fast and cheap transaction and smart technology and on paper TomoChain and TOMO seem to have a lot going for it.

TomoChain also supports all EVM-compatible smart-contracts, protocols, and atomic cross-chain token transfers. This makes it all sound very intriguing, and interesting for the future to keep tabs on TOMO.

Getting started

  • Find out more about Tomochain by visiting their website
  • Learn more about setting up your own Tomochain Masternode, or TomoMaster here

ROI and where can I buy some TOMO?

  • The annual ROI for running a Tomochain Masternode is about 30% (the minimum threshold for running a Masternode is 50k)
  • You can buy TOMO at reputable crypto exchanges like via Binance and KuCoin

Conclusion – Best Masternode coins 2020

Note: This is, of course, a subjective list, and it is based on the popularity of the cryptocurrencies, the return of investment (ROI) and our thoughts about the future of the cryptos. There are of course many other great choices out there!

By running your own Masternode for either a Proof of Stake blockchain or Proof Work blockchain you can both help the network function and grow. But also earn an extra income on the side.

You are contributing valuable help for the blockchain and the people that use it. So getting an appropriate reward should be in place.

If the future is decentralised then your help will go a long way to help that future come to life. Already today people are joining in by using cryptocurrencies. Or by mining them, staking or running their own nodes.

From all of us who use cryptocurrencies a big thank you!

We hope that you liked this top list of Masternode coins. If you have any thoughts, questions or suggestions then please feel free to leave a comment below. Or get in touch with us here, or via our Facebook page.

Find other guides:

  1. Best way to invest in crypto
  2. What crypto markets are
  3. Bitcoin investing guide
  4. How to short Bitcoin
  5. Best Ethereum wallets

Written by:

Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier

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