As Traditional Investment Markets Plummet, You Can Consider This Alternative
When the WHO officially declared the COVID-19 crisis a pandemic, all global markets and commodities plummeted to their lowest low in 10-years and crude dropped to its lifetime low. This caused people to lose trust in banks and other traditional financial instruments and prompted individuals to seek alternative venues to park their capital.
Why did I keep my money outside of the bank?
Reading various books and autobiographies, I understood that most millionaires don’t have all their money sitting in the bank. They distribute their funds by investing in non-traditional asset classes. Most of these come with calculated risks but also promise high returns; in some cases, their base investment may increase multifold.
This inspired me to do the same and here’s my story of investing. In 2015, I heard about the first cryptocurrency Bitcoin — the peer to peer technology that operates without any central authority. I learned how to earn bitcoin by setting up mining capacity since I had small savings. I tried to buy mining hardware and set up my small mining capacity at home. The return was not good enough compared to my combined electricity cost and hardware cost. Yet, I learned more about mining. I also tried mining ethereum and some other coins for a limited time.
From bitcoin mining to stake based minting
It was in 2018 I discovered the stake based minting concept. To earn through staking, I had to collect coins from the open market and be part of a network. It hardly required any hardware setup. Upon researching, I found that Ethereum too was planning to soon move from proof of mining to stake based minting.
Around the same time, I came across an enterprise-ready hybrid Blockchain project called XinFin. I found their concept of hybrid Blockchain architecture interesting and purchased their coin called XDC — XinFin Digital Contract. I had planned to start stake-based minting as soon as XDC would go on the Live net. It was in June 2019 that I purchased 10 million XDC from cryptocurrency exchanges like Mercatox.com, Alphaex.net, and LATOKEN. I also converted some of my Ethereum coins to XDC coins.
How I set up my XinFin masternode/stake-based node?
XDC Network has created an easy one-click installer to set up a minting node/masternode.
I found this brief on “how to setup masternode” quite easy to follow.
Also, InSoft.net provides an easy support and cloud instance package to set up XDC based masternode.
53% return in one year.
After almost a year into stake-based minting on the XDC network, I can say that running a masternode is an excellent way to earn passive income.
In my case, I made a 73% profit in a single year by both running the node and through the price appreciation of XDC coins. Minting yielded 13.5% of the total profits while 40% of profits came from coin price appreciation)
The lesson I learned from my past 4 years’ experience.
This is for sure not a get-rich-quick business model by any means. But if you can afford the upfront cost of becoming a masternode, it is a valuable way to earn passive income. The other aspect is that you control your own assets and not third parties like banks or financial institutions. Looking at full control over assets and my returns, I am planning to set up one more masternode and started collecting 10 Million XDC to earn passive income.
Disclaimer: this is not investment advice. Do not make investment decisions based on my internet comments or experience. Always do your own research because crypto investment, like all other investments, involves risk. And past performances do not guarantee or indicate future results.