Crypto Nodes: Hype or worth to invest?
Crypto Nodes: Hype or worth to invest?. Before I jump into is it all hype or it is worth to invest, let me clear a few things. Starting, The current node’s scenes are different from actual Masternodes. A Masternodes guide will be made soon to get more detail. Now, let’s talk about the new hype i.e. Nodes. There are a ton of Nodes popping out daily. But, if you want to keep your money safe few things you should understand before you Ape in.
What are Nodes?
Nodes refer to individual devices on the blockchain network which are all interconnected with each other and constantly exchanging data
In general terms, a node is a lot different and sensible compared to the recent hype nodes. A Crypto node or maybe a Masternodes is essentially responsible to make a particular blockchain secure and verify transactions. It can be similar to a Miner but a little more complicated and high rewarding. I will not be talking about actual nodes here but rather Naas/Daas, etc.
The Top Nodes state themselves as NAAS (Node as a service), DAAS (Defi as a service), etc. Starting off with the biggest player here which is Strong nodes, followed by some reputed ones Thor Nodes, Strong Nodes, Comb financial, Vapor nodes, Project X, Redlight Nodes, Cronodes, Polar Nodes, etc. When I say Top nodes it takes a different parameter in check – TVL (Total value locked), Total no of nodes, Total no of followers, talked about, reputation, Roadmap ahead, etc.
How does these Nodes work?
Some of the basic understanding of how these nodes work is that you buy their token depending on each Node. For e.g. 10qty, 50qty, etc and make a node. Let’s say Thor they have 4 different tiers of Nodes (Heimdall, Freya, Thor, Odin). Each of these nodes requires a different amount of tokens to be bought. Once you create a node, your all tokens are gone and aren’t recoverable. Rather, you will receive a daily payout depending on Tier. The below chart will give you a more detailed understanding.
Things to watch out for, Sustainability, How to select
While there are some Top nodes in the Crypto space, there are some things to watch out for. While you may buy the Node or create a node, their token value may fall pretty quickly. Below is the chart of Thor and Strong which will scare you as well as make you understand how risky these nodes are. While being risky, some Top nodes have a good roadmap ahead, time will tell but it can help investors to make ROI + earn a passive income.
The biggest concern here about Sustainability is that some Node which are pure RUGs or Pumps and dump schemes can give you as high as 5-10% daily rewards. Some experienced crypto founders behind these nodes who understand Sustainability starts with 0.5-1% or slightly more. Low rewards in turn help price action + a more sustained future for nodes.
How to select is a broad sense and may vary from investor to investor. While getting in early may seem to yield the most rewards, a basic RUG or bug in code can result in a total loss of your money. It would be ideal to check these before investing.
- Read the Whitepaper
- Check their roadmap, tokenomics, reward rate, the difference with other Nodes, etc. in the whitepaper
- What their community is talking about
- How passionate they are apart from price action – Founders and creators just talking about Price isn’t healthy. Product is more important for longer sustainability
- Followers on social media, Doxed/known faces behind the project, Experience of the team, etc.
Nodes I have invested in
So, I have been early as well as risky in these nodes. I have burned my hands and also earned some. Some nodes I am part of are Thor, Comb financial, Cronodes, and Vapor nodes to name a few.
Remember – These nodes are on different chains like AVAX (Avalanche), FTM (Fantom), CRO (Cronos), etc.
I will mention this quite clearly, this guide or article is for education and general purpose. I don’t want anyone to take my word on any of these nodes. NFA (Not financial advice) But, you can understand and read thoroughly before investing. Some of these can earn you a decent passive income.
If you have any questions or if you need any help, do let me know. You can connect with us on Social Media as well. If you are planning to start investing do check out Binance and WazirX. Check our Cryptocurrency tab for more related stories.