YieldNodes is an online platform that offers the opportunity to generate passive income in the form of cryptocurrencies that has gained great popularity among many crypto enthusiasts, even though it has very little time in the market — around four years.
The platform uses the slogan “profitable and proven crisis safe” to emphasize the fact that even amidst the COVID-19 pandemic throughout 2020, the platform provided excellent returns to its users, this being one of the reasons that allowed the service to establish itself in the market.
However, is YieldNodes as profitable and secure as it looks?
How does the platform work, how good can the profits be, and what are the risks?
In this new YieldNodes review, you’ll get the answers to all these questions and more…
What is YieldNodes?
The first thing we must clarify is that YieldNodes is not an investment program. In the words of its creators, YieldNodes is:
A “pay for service” system that generates profits based on a mathematical algorithm ingrained within each master-noded coin. Yieldnodes is a server rental program. It is not related to trading cryptos or currencies in any way.
In other words, YieldNodes is a platform where its users can generate profits by renting master nodes, taking advantage of price differences, and providing services, all within a crypto ecosystem that works in a perfectly coordinated way.
Indeed, the platform already has several masternodeable cryptocurrencies in the market, alliances with sites such as CoinMarketCap and CoinGecko — among others — its decentralized exchange, and its own online shop for clothing and accessories (Decenomy).
YieldNodes started operations in 2018. And since then, it’s been running seamlessly and providing interesting profits to its users up to this date.
The company behind the platform is currently based in Hong Kong and Malta.
Make money with master-noding and PoS
Masternode technology works with the proof-of-stake (PoS) consensus mechanism to provide its users with the necessary powers to process transactions and store them on the blockchain.
Usually, in other blockchains that also use PoS, nodes get rewards for recording transactions on the blockchain. But users running master nodes are also responsible for carrying out other activities critical to network governance, which means they can also reap higher rewards.
For a user to have the right to run a master node, he must deposit a minimum amount in the corresponding cryptocurrency, as well as provide computing power and storage space for all the operations required in the network.
The rewards that users can obtain through this system will depend on their participation in monetary terms, as well as the effectiveness of the strategy used by the platform to maximize the earnings in cryptocurrencies.
The key is in the work of the team behind YieldNodes
For this system to work and deliver solid profits, YieldNodes uses a variety of currencies to provide balance to the equation. This is because, in the same period of time, some of these currencies may increase in value, while others may lose part of their value.
The team behind YieldNodes does extensive research to find the best market opportunities, present them to their users, and use the available funds needed to create the master nodes.
Although this process is technically quite complex, the best part is that ordinary users don’t need to have any technical knowledge to be able to generate profits, since the platform takes care of the entire process.
And how much money can this generate?
In general, thanks to the combination of master-noding and PoS, a YieldNodes user can expect to see returns of up to 10% per month. This is a huge percentage when compared to the percentage of profits that can be obtained from other markets not related to the crypto world.
According to data from the official website, YieldNodes has generated returns of up to 213% per year (almost 20% per month) for its users through compounding, especially in those periods when the crypto market was in a bullish trend.
Of course, just as earnings have skyrocketed dramatically, there have also been periods where YieldNodes users have seen their earnings decline. We have an example in the 40% drop in the value of Bitcoin in May 2021, where YieldNodes users “only” managed to obtain profits of up to 7.9%.
YieldNodes Performance (source: https://yieldnodes.com/)
However, it’s also worth remembering that the percentage of earnings will depend on the coins chosen for the creation of the master nodes.
After you have received your earnings for the month in your user account, you can continue to make more money on your money if you opt for the platform’s compound option, or you can withdraw your earnings using one of the available withdrawal methods.
How does YieldNodes make money?
Up to this point, everything looks pretty good regarding the profits that users can obtain, but what do those responsible for the platform gain from all this?
YieldNodes generates income through the different activities it develops, including master-noding and other activities related to the ecosystem — including operations with some of its crypto assets.
Of all the profits generated by these activities during one week, the platform will keep 15%. This money will serve to cover maintenance costs, as well as to provide a reward to the team responsible for YieldNodes for their work.
How do deposits and withdrawals work on YieldNodes?
Deposits
Every time you deposit funds on YieldNodes, these funds are automatically converted into masternode coins and locked for a minimum period of six months. This is necessary to guarantee the stability and reliability of the PoS system used by the platform. Note that while these funds are locked, it is impossible to withdraw them – unless you use the emergency withdrawal feature (see below).
As the months go by and you generate profits, these will be reflected in your account balance on the first day of each month. In this way, you will always be able to see how much money you’ve invested and how much money you’re making.
One of the advantages of the platform is that it allows you to make deposits in fiat currency such as USD and EUR.
You can make these deposits through traditional methods such as credit cards (Visa and Mastercard), debit cards, and international bank transfers.
Since this is a crypto project, they prefer to accept deposits in Bitcoin.
Withdrawals
YieldNodes offers you two (regular) options and an emergency withdrawal feature to withdraw your funds:
- You can withdraw your monthly earnings as they are reflected in your account on the first day of each month.
- You can withdraw your initial investment + accumulated profits after the end of the locking period established for this investment.
The problem with this last method is that, in addition to waiting for a minimum of 6 months to withdraw your money, once this time has passed, you’ll have to wait one additional month while the master nodes are dissolved.
Once this process has been completed, you can make the formal request to withdraw your funds, which you can receive in the form of Bitcoin in the wallet of your choice.
- The emergency withdrawal feature allows you to withdraw all your masternoded and withdrawable combined balances within 72 hours. The Catch: -25% will be deducted as a penalty fee (the fee is kept in YieldNodes to keep the program healthy).
What are the risks?
As with any type of crypto project, YieldNodes is not without risk.
Although the team behind the platform makes it clear that they take all kinds of measures to try to guarantee the security of the platform in all the necessary aspects, they also make it very clear that attacks are a reality present every day, and crypto platforms are not free from these attacks.
On the other hand, there is also the implicit risk of operating with cryptocurrencies, taking into account that this is a market with high levels of volatility.
How does YieldNodes try to mitigate risk?
Due to the volatile nature of cryptocurrencies and the risks that this implies for investors, YieldNodes applies a methodology that allows risk to be distributed through coins that have very high monthly returns.
Currently, YieldNodes has a portfolio of about 18 cryptocurrencies ready for the creation of master nodes. Some of these coins are:
Trittium
Sapphire
Birake
Ultra Clear
Peony
etc.
This package of cryptocurrencies is designed in such a way that it offers a solid and safe monthly return, but at the same time leaves open the option of substituting some of the coins that make it up if any of them decrease in performance and become too risky.
This also means that the team behind the platform is constantly on the lookout for options to get the best possible return on this cryptocurrency portfolio.
Is YieldNodes trustworthy?
Although YieldNodes has only been on the market for a short time, so far its users have not made any complaints regarding the platform’s operation. However, it is impossible to say that such a platform can be 100% reliable and legitimate having been in the market for such a short period of time.
Placing funds on this type of platform carries risks and that’s part of the game of investing, whether in crypto assets or any other type of physical or digital asset.
Only time and user feedback are the two factors that can say for sure if a platform is truly trustworthy but based on the short time YieldNodes has been around and the way they’re running the business, it looks like they’re on the right track.
Are the funds in YieldNodes protected?
The funds that are deposited on the platform are automatically converted into master node coins to guarantee the operation of the PoS system.
These master node coins are later placed in an investment pool and are protected by the master node system, which is one of the safest when it comes to preventing external and internal attacks due to the technology it uses.
FAQ
Can users from any country participate in YieldNodes?
Users from any country in the world can register and use YieldNodes, including users from countries such as the United States and the United Kingdom, the only limits being the legislation for each country.
How much money do I need to start investing on YieldNodes?
The minimum deposit amount at YieldNodes is as low as 500 EUR. It is possible to make this deposit using fiat currency or cryptocurrencies such as Bitcoin.
Can I withdraw my money at any time?
Any first deposit of funds on the platform will be automatically locked for a minimum of six months to guarantee the proper functioning of the system. However, it is possible to withdraw the profits generated every month.
Is there a risk of losing money on YieldNodes?
As with any crypto investment platform — and with all investments in general — there is also the risk of losing money with YieldNodes, mainly due to a crypto market crash or any other force majeure.
What are the costs/fees at YieldNodes?
Any individual can use the platform for free, the only requirement being a minimum deposit of 500 EUR to be able to participate in the master-noding/PoS system. On the other hand, the platform takes 15% of the profits generated to cover maintenance costs and provides a reward to those responsible for it.
What is the expected monthly ROI?
On average, the return on investment is around 10% per month. However, this will be subject to the value of the cryptocurrency package selected by YieldNodes each month, which may go up or down slightly depending on the health of the crypto market.
What is Yieldnodes performance vs other traditional “investments”?
Performance Yieldnodes vs traditional “investments” over the last 33 months – 500 Euro example investment (source: https://yieldnodes.com/)
Conclusions
In this YieldNodes review, we have gone over several important aspects that serious users should remember before considering investing their money.
We have seen how the masternode system works, how this system generates profits, the risks implicit, and how reliable the platform can be based on some of these aspects.
First of all, you should note that the platform is certainly different from what we’ve seen so far in the world of decentralized finance (DeFi).
This single fact, that of innovation, is already an additional risk that users must consider because as this is a new system, there will always be the possibility of errors not foreseen by the developers, with the consequences that this may entail.
However, until now, this hasn’t been the case and the platform users have not filed complaints about its operation. Most users are quite satisfied with the excellent returns they’re getting from YieldNodes.
The general recommendation, as in all types of investment is to start with a small amount and not invest more money than you need to live.
The best part, if you decide to invest, is that you only have to wait a minimum of six months to be able to withdraw your money. In case you don’t want to continue using the platform, something that acts as an interesting incentive to give greater credibility to the platform.
