2018 seems to be the year of Masternodes and staking wallets as more and more cryptocurrencies are implementing Masternodes and Proof of Stake. We take a closer look at the two to decide which one works best. So, let the battle begin – Masternode vs Proof of Stake.

What is a Masternode?

Masternodes are decentralized due to the fact that they perform certain tasks that relay transactions on the cryptocurrency network. They are full nodes and thus complete one whole block. Masternode holders are incentivized with a share of the block rewards in the specific cryptocurrency that the holders have. The frequency of these coin payouts differ as some may pay out once every day and others multiple times throughout a day. Masternodes are a great way of earning passive income. It basically means that you have to lock a specific number of coins. You can run a Masternode by setting up a hosting server or by means of a service provider since it can be quite technical to do the setup. However, once the legwork has been done you need only to check up on the coins every now and then and enjoy the rewards.

What is Proof of Stake?

Proof of Stake also refers to staking which means that coin hodlers have to put away coins in a wallet for a certain time. During this time, they will be ‘rewarded’ with more of the same coin. To do this you need to download the specific wallet onto a PC for example, keep the wallet open and connected to the Internet. However, Neo is the exception as you can close the wallet and it will automatically run. Setting up a staking wallet is very easy and does not require a lot of technical knowledge.

For more information on Proof of Stake, refer to Bitmart’s blog ‘What is Staking?

Masternode vs Proof of Stake

We compare Masternodes and Proof of Stake to give you a better idea of which one would work best for you. The main differences are:


Masternodes tend to have better rewards than Proof of Stake. You can also predict your Masternodes profits from the stats page whilst this is a bit more unpredictable with a staking wallet.


Masternodes can be hosted away from your wallet but unfortunately, it cost more to host than staking wallets. Reason being, it requires more resources. Majority of staking wallets have to be connected to the internet all the time. Neo is an exception.


Setting up a Masternode requires some technical knowledge whilst setting up a staking wallet is as easy as downloading the wallet onto your PC or by means of a StakeBox.

Required number of tokens

With a Masternode, you need a certain amount of coins in order to benefit. This is not the case with staking. You can have as many or little as you like, but profitability will obviously vary. It also means that the profits are unpredictable as well as the payout frequency.


Masternodes require a 3- 6 day waiting period before you start earning rewards. This is not the case with a staking wallet. You can start earning rewards from your staking wallet immediately.

Examples of Masternode and staking coins

Here are a few examples of Masternode coins:

  • Dash
  • NeosCoin
  • Diamond
  • PIVX
  • Bata
  • ZenCash
  • ChainCoin
  • Syndicate
  • Vcash
  • Stratis

For a complete list, click here.

Here a few examples of staking coins:

  • CloakCoin
  • Emercoin
  • HempCoin
  • Interstellar-Holding
  • Mintcoin
  • OP-Coin
  • Reddcoin
  • TransferCoin
  • TeslaCoin
  • Spectre Coin
  • Signatum

For a complete list, click here.

In conclusion, regardless of which one you choose, Masternode or Proof of Stake, it is a great idea to have the ability to earn a passive income from your cryptocurrencies. You cannot go wrong.