Do I need 3 wallets? I see theres a spendable, a deposit, and an earnings.
Cant I just use my spendable as my earnings wallet and just have 2 wallets?
Also if my machine goes down, does my node go bye bye or will it stay there until I turn my machine back on? Also do I need to keep a file running or something to have my node stay online?
The minimum of wallets you will have for first setup is 3. Your main (spendable ) wallet, deposit and static wallet. Deposit is the one holding the 500k XBY. Static will be coupled to deposit and static will be the one that needs to be online. CC suggested a 4th wallet so it is easier to keep track how much you are earning from running the Static but you can use spendable if you want too. If you do so you will have 3 wallets with earnings 4.
If your machine goes down the wallet will still be there so just turn on back your machine and run Static again. Static wallet is the one you will need to run to earn XBY. If your node goes offline you won't be earning anything untill you run it again.