Reinvesting coins earned from masternodes is a popular strategy among masternode investors. By reinvesting the coins they earn, investors aim to compound their rewards and grow their investments over time.
When a masternode generates rewards, these rewards are paid out in the form of the associated coin. Instead of cashing out these rewards, you can choose to reinvest them back into the masternodes. This means the rewards you earn will be used to purchase more shares in the masternode, increasing your stake and ultimately increasing the potential rewards.
On Crypos, you have the ability to select from several reinvestment percentages - 0%, 25%, 50%, 75%, or 100%. If you opt for 25%, 50%, or 75%, it means that the selected percentage will be added to your Shared Masternode balance, and the remaining reward piece will be sent directly to your Payout address.
Enabling reinvestment is easy on Crypos, with two options available:
When you click "Buy Share" on the Shared Masternodes page, you'll see the Reinvestment slider in the pop-up window.
On the My Masternodes page, in the Details section, you'll find the Reinvestment slider at the top of the Masternode table.
Reinvesting can have a significant impact on the growth of an investment over time. By continually reinvesting the rewards, you can compound your gains and generate even higher dividends in the future. Additionally, reinvesting can help reduce volatility's impact on investment.
It's important to note that reinvesting is not suitable for everyone and should be considered in the context of an overall investment strategy. Before reinvesting, you should carefully consider your financial goals, risk tolerance, and the potential risks and rewards associated with the masternode you are investing in.