Cryptos are extremely volatile, which is one of their strong selling points. They can rise in value very quickly, bringing in incredible profits for early and savvy investors. For example, if you swap Solana to ETH at the right time, it can be extremely profitable. However, speculation is far from their only benefit. They mostly shine through their versatility to provide investors with a regular stream of passive income.
Moreover, they present a wide range of methods on how to start making decent returns. Staking, validator nodes, liquidity mining, lending, bot trading — all are viable strategies to add a decent way to increase your capital without doing any work.
In this article, we will take a closer look at validator nodes, what they are and the advantages they bring to people that decide to run one. We will provide you with an exhaustive list of the best validator nodes available and whether you should invest in one.
What Are Crypto Nodes And How They Work?
Blockchain technology relies on a digital, distributed ledger of transactions. Every token and coin on the network is represented as a transaction. To provide a robust system of exchanging value, the blockchain relies on a network of validators that verify these transactions, confirm them, and add them to a new block on the blockchain.
Crypto masternodes store the entirety of the blockchain and have a full overview of the transaction that happened since the inception of the network. However, where they differ from proof-of-work nodes (miners) is that instead of competing for the next block with other nodes, masternode runners stake a significant amount of coins on the network.
By locking up their funds, they provide security for the network and prove their commitment to the blockchain. The more coins masternodes stake, the more difficult it becomes to conduct a double-spend attack.
For this service, masternode runners are rewarded with a portion of the transactions fees on the network. This acts as a monetary incentive to secure the blockchain and provides continuous income to these entities.
Top 7 Crypto Nodes To Run In 2022
If you are new to this space, it can be challenging to find the right masternode provider for your investment. To help you with this, we compiled a list of the best crypto nodes that you can run in 2022:
Dash is the pioneering blockchain in masternode technology. It has been around since 2014 and has since provided an alternative to crypto earnings by running masternodes. Running a node requires 1000 DASH and will provide around 1.8% yield on a yearly basis.
Pivx is a privacy-centered cryptocurrency that allows users to obfuscate their transaction data by using zero-knowledge proof. The masternode functionality of Pivx also offers governance and DAO capabilities to the blockchain. It requires 10.000 PIVX tokens to run and will provide upwards of 8% yearly returns.
Syscoin integrates both layer 1 and layer 2 solutions to its network for ultra-fast transactions and increased utility. To run a node on Syscoin, you will need to lock 100,000 SYS tokens. This should net you around 5.5% APY.
Previously labeled Zcoin, Firo is another privacy coin that provides users with full anonymity when using its network. You will need to secure at least 1,000 coins to run the masternode, allowing you to get around 10% returns on a yearly basis.
Stakenet is a lightning network-compatible blockchain, allowing for incredibly fast transactions. As such, it can be used for microtransactions and daily payments. You will need to lock 15.000 XSN, which should net a staggering 20% yield per annum.
Smartcash focuses on fast payments and low fees and aims for mass adoption with merchants. The staking threshold is 100.000 SMART tokens which provide around 38% APY.
Nuls is a microservices-focused cryptocurrency that allows for smart contract activation and dApps. You will need to invest in 20.000 NULS to run a masternode, and receive around 10-12% yearly earnings.
Are Crypto Nodes A Good Investment?
Crypto nodes can be a great way to make passive income. While the initial investment might seem a bit steep sometimes, it’s almost always worth it. For instance, coins like Stakenet and Smartcash provide double-figure yields, making them some of the best crypto nodes to run 2022. So, if you aren’t willing to take the risk in crypto trading, a masternode is a great alternative that requires very little work and provides decent returns.