Crypto Cashflow positive crypto

Thought I'd start a thread about how to make your crypto work for you. There's a few possible plays here and a few players on this forum.

Crypto often actually does stuff...and sometimes you can get rewarded for it. Mining is the obvious example but there are other ways to skin the cat. If putting money into crypto wasn't risky enough for you...well this thread is for you!

For example there are a few places where you can lend bitcoin out and get paid in USD. Peer to peer lending with bitcoin.

There are also large affiliate mining operations that sound a lot like scams...but at the same time a lot of people are making a lot of money on.

For me, I've been getting into masternodes which if you're familliar with Ubuntu are a great way to get some regular coin coming in. I've got a few of them now and am bringing in around $150 per week. From a 5k investment (with play money I never really earned - BTC).

Masternodes are part of a new(ish) idea in crypto. Instead of mining the coins using big fat computers, you get coin owners to stake a claim in the network. So for example if you buy say 1000 coins and put them into a masternode computer you'll earn a percentage of the fees and get free coins in return for running that network computer that verifies the blockchain.

Because you've invested 1000 coins you'll be keen to get a return so you leave them "working" on the masternode. But because you're doing that, the overall supply of the coins goes down by 1000 coins as well.

Basically it encourages you to stay HODLing. In return your PC helps run the network. If enough people start running masternodes then the coin supply drops a lot and the price goes up....which makes your masternode return worth more, so you keep HODLing etc etc etc..

Now masternodes can be expensive..like 100k + and quite frankly I don't have the planet-sized kahunas to attempt that.

But the tech is open source and there are a lot of little small caps that have implemented the technology. If you can find one with a friendly and open development community, that's listed on at least 2 exchanges and hasn't mooned in the last week then it can be worth a go. Oh, the total number of coins needs to be low too (under 30 mill or so).

Here's a list of common masternodes, how much they cost and the returns you can expect.

Just do your research, this is the risky end of an already risky asset and don't put anything in that you can't afford to lose.

Good luck!

If anyone else has developed a cashflow strategy please share!

 

Which masternodes would you recommend for a newbie and would you need more than 1k to start with to make it work?

 

I am sure there may be some legitimate ways of making a return on crypto (other than speculating on price), but many of these are outright ponzi schemes or scams. If you can't find well respected members of the crypto community using the systems (i.e. actual respected investors or developers who have been in this space for years, not MLM/sales/fly-by-night types), then they are best left alone.

One such scam I have been tracking is USI TECH: USI TECH - Another crypto related ponzi?

 

I agree that USI, and most if not all of the affiliate mining schemes are dodgy as hell, however people are genuinely still making profits of them...even if they may be Madoff Style...

I checked it out thoroughly and decided not to partake.

Masternodes on the other hand seem mostly legit. You've got to pick your coin but generally it seems ok.

Worth pointing out that this is the frontier of the wildest of wild wests....All of it is very risky. However that doesn't mean that it doesn't work. At least for now!

 

yeah more than 1 way to skin a dog. eg COSS which is an exchange with their own coin and they give way 50% of their transactions fees to the users at the end of each week. Not much now but once they become a decent size might pay off.

own some PoSToken, which have a new lending platform with high rates (that might be a poinzi?), but will give it a go anyhow

 

Hi, guys. Could you share your thoughts on this I Smart Node pre sale.
Smart Node Token
1) how do I check if its a scam or not?
2) if not a scam, is it worth investing?
3) what do you think of white paper?

 

Looks like garbage to me.

Only briefly skimmed, but looks like they are taking your capital, giving half the funds raised to themselves, their mates and some colleagues, creating their token which invests in underlying masternodes of various currencies... what value are they really adding?

I guess by doing it this way you may be able to afford part ownership of a masternode instead of buying one yourself, but there is no background provided on the team involved (name and role ), who knows if they have any of the experience or skills to pull this off.

Looks textbook scam to me (or at least poor value for the end investor). That said I haven't really done a lot of reading on masternodes, so maybe @hammer can concur or offer a different take.

 

thanks for your input. Have you found any decent place to look for quality ICO or pre sale?

 

No I don't touch that end of the market, too fraught with danger/scams. Enough risk for me holding one of the largest cryptos.

 

ok thanks

 

@The New guy this is like a.crypto CDO.

Taking a risky asset like crypto, then bundling all the even riskier crap penny alts into an even riskier ICO.

No, nup, no way, no how. Avoid!

 

Cheers.

 

Some of the 'cashflow positive' cryptos have been lending systems (most of which look like ponzi schemes). BitConnect probably one of the largest (if not THE largest) has just collapsed:

Below via Ponzi Scheme BitConnect Plummets 90%

Just hours ago, BitConnect announced they the would be closing all loans and discontinuing their lending program, effectively immediately. Users with existing loans would have BitConnect credited to their account equal to the loan value, using a set value of US$363.62 per BCC in reimbursement. The BitConnect coins, now worthless, were immediately transferred to other exchanges and dumped immediately by the duped investors.



While investors technically did not lose their funds, the exchange of their Bitcoin and dollars for the now useless BCC represents an essentially equal fate. While the coin has recovered from the initial low of under US$20 to a current price of just under $40, investors and lenders have still witnessed a vast majority of their investments vanish in an instant. According to the BitConnect company, they chose to close the lending platform after massive bad press, along with receiving Cease-and-Desist notices from the states of Texas and North Carolina.

 

Bitconnect Ponzi pusher in action

 

Guest It appears USI tech will be going down the same path.

USI-Tech Scam Shutdown In USA And Canada - Ethan Vanderbuilt