Choosing which masternode hosting services to list with is a very important task, for new coins and mature coins alike. While they all achieve the same goal of hosting masternodes, each service goes about it a little differently, and these small differences can make a world of a difference in your overall satisfaction with the service.
Not to mention the masternode hosting space is becoming quite crowded and choosing which service/s to list your coin on may seem like a daunting task. In this article I hope to showcase the important aspects and features of a masternode hosting service, including what to expect, what to look for and what to avoid.
First I will say that the content within this article is my own personal opinion.
Second, I would like to attempt to debunk the myth that a masternode hosting service should be expected to guarantee, or be chosen over another platform based on, exposure for the coin that is being listing. Nor should our listing fees be judged or gauged by such criteria. We are crypto custodial services, not marketing services. Any exposure gained via listing with a masternode hosting service should be considered a bonus.
Instead focus should be pointed towards far more important aspects such as security, platform features, quality of service, and quality of customer support.
First and foremost, security. Security is absolutely priceless! One should ask many questions about what types of security measures are in place to protect their investor’s funds. It certainly will not look good, especially for a new coin, to list with a service that has less than adequate security measures in place. Cold Wallet storage is a MUST!
I encourage you to take a look at this article, where our team at Evonodes provides a deep explanation of the security measures we have in place.
https://medium.com/@smokeysrh/evonodes-weekly-3-21-19-6825c9f9e9b4
One major “feature” to avoid is Instant Withdraws. Instant withdraws require coins to be stored in Hot Wallets. Hot wallets are open to the network and have a considerably higher chance of being hacked. Take for example the recent Binance Hack. Binance is one of, (if not THE), largest exchanges in the world, and they had 7000 BTC ($40 million) stolen from their hot wallets! Now this isn’t to say that a masternode hosting platform is similar to that of Binance’s platform. BUT, it does drive home the point that hot wallets are not a safe place to store coins. Although, for an exchange some coins need to be in hot wallets in order for trading to take place, this isn’t necessary for a masternode hosting service unless they are providing Instant Withdraws.
Even though Instant withdraws seem like an attractive feature, they are actually not worth the risk in my opinion. So I will repeat, Cold Wallet storage is a MUST for a masternode hosting service!
Next I want to talk about Customer Service. Since I have been in the Service Industry for most of my life, I tend to place customer service high on my list. Others may have differing opinions, but to me, nothing can compare to a great customer service experience. Not only for the project investors, but for the development team as well. Sure most masternode hosting services provide decent customer service to the investors using their platform, but all to often the development teams behind the projects are not given that same level of service and respect, or even worse they get taken advantage of.
Make sure to ask around, get some feedback on the teams behind the platforms you are interested in listing on. I see plenty of teams asking their communities which services they like the most, which is great, but I would encourage you to also ask the teams behind other coins where they have had their best experiences at. Always ask if there are any hidden or known fees for wallet updates/hard forks/ect. Finding out about these things down the road can really hinder or even halt progress for your project.
Next let’s talk about platform features.
This will be different for each person, depending on what features are important to you and your community. Some things to consider are withdraw/deposit times. Is the platform easy to use? Do they offer Instant Shares? Are there any collateral locks? Do they have auto-reinvestment? If it is a Shared Masternode hosting service like Evonodes, are there seats, reservations, minimum deposits/staking amounts, or any long waits to get in or out of a node?
The space is constantly evolving and new features are coming out all the time. Which of the platforms that you are looking at are the ones that are working hard, creating these new features, and which are merely following the trend?
Lastly, we will discuss fees.
One of the biggest things to consider when choosing a masternode hosting service, is the fee charged to host the masternodes. This will take a bit of math to figure out, but the best way to compare this is to look at how much is charged per full masternode per month. Each service takes their fees, & displays their fees, in different ways. Some use percentages, others us a flat dollar amount. Some take fees from the masternode rewards, others take fiat only.
When comparing fees, remember to take into consideration everything we have discussed thus far, and keep in mind that you get what you pay for. You want to make sure that you aren’t picking the bargain basement deals, but at the same time you want to make sure you aren’t choosing a service that is going to charge outrageous and unfair hosting fees. The investors of your project will need great service at a fair price. It is up to you to seek out that balance.
To close out this article I would like to drive home the overall message I am trying to put out there, and that is to DO RESEARCH!
Whether you list on our platform EvoNodes, or one of our competitors, make sure your investors and the safety of their coins are top priority. If you do that, you will increase the chances of success for your project immensely. With that said, on behalf of the team at EvoNodes, best wishes in all that you do, and may your successes see no boundaries or limitations!
Smokey SRH
co-CEO EvoNodes.com
