This is my full Yieldnodes review, based on my own experiences of investing in their platform.
>> If you want to sign up to Yieldnodes please use THIS LINK. <<
- Monthly returns from masternodes of circa 10% per month
- Compouding can generate returns in excess of 220% per annum
- Minimum deposit €500
- Minimum term 6 months
- Returns/Profits are paid monthly in bitcoin
Yieldnodes is a cryptocurrency platforms that allows investors to grow their fiat currency (USD, GBP, AUD etc) or their cryptocurrency (BTC, ETH etc) by earning masternode returns and distributing them between investors. I will explain how masternode returns are generated in great detail later in this review. First, here is an interview I did with the CEO of Yieldnodes, Steve Hoermann.
>> If you want to sign up to Yieldnodes please use THIS LINK. <<
As you can see from my video, this platform aims to generate a very stable return for investors by taking advantage of a lucrative aspect of cryptocurrency known as “masternoding”. Not only are masternode profits generally fixed, offering a very steady return, they can also be very high AND can be compounded, meaning the returns for investors can be substantial without taking much risk. In fact, there is no day to day trading risk with masternoding, as there is with other types of trading, such as forex or stocks.
But what exactly is masternoding?
Within the cryptocurrency space, each coin has a fixed number of total coins that will eventually end up in circulation. These coins aren’t released all at once, but slowly released over a period of years. For example, there are a total of 21,000,000 Bitcoins that will eventually end up in circulation, but since it’s inception in 2009, there are currently still only about 18.4million in circulation right now. The coins have slowly been released over the years and the last few coins might not be released until as far off as 2040.
But the coins that are released are not just given away, they have to be earned.
There are 2 ways that coins can be earned. These are; Proof Of Work (POW), and Proof Of Stake (POS). Let’s explore how both of these work, as it’s an important part of how Yieldnodes generate their returns.
Proof Of Work (POW)
Proof Of Work is often known as “mining”. This was the original way that coins would be released and is how bitcoins can be earned. POW is based on an advanced form of mathematics called “cryptography” (hence the origin of the word “cryptocurrency”). These are essentially very complicated math problems that need to be solved by powerful computers. For each equation solved, a small amount of crypto is rewarded. With POW you are therefore exchanging computer power for cryptocurrency. A normal desktop computer is capable of mining cryptocurrencies, but the processing power required for a reasonable return is extremely high, and so only very powerful dedicated machines can generate a meaningful amount of the most popular cryptocurrencies. These machines cost thousands of dollars to build, require a certain amount of coding experience, and need constant monitoring. They also consume a huge amount of electricity, and it’s possible to even lose money on crypto mining after the cost of hardware and electricity are accounted for.
Proof Of Stake (POS)
Proof Of Stake (POS) still aims to reward individuals with currency, but instead of solving complex equations, one simply has to provide proof of “stake” (i.e. ownership of the coin you want to be rewarded for). In order to do this, a user must deposit their currency in a specific wallet, where they are frozen and can then be used to generate coins. There is usually a minimum investment amount needed in order to qualify for POS rewards, and this is often referred to as a “masternode”. In order to qualify for a masternode, there is usually a requirement to buy a high volume of coins, which can be very expensive.
Once a masternode is set up as proof of stake, coins are awarded to the masternode owner on a monthly basis. These coins can then be traded into different cryptocurrencies, or even exchanged into fiat currency (such as USD or GBP).
How Do Yieldnodes Generate Returns?
Each POS cryptocurrency has a different reward for their masternoders. Some offer only a very small return, equating to around 2% per month, whilst others offer hundreds or even thousands of % per month. Unfortunately, most coins have very little value, and the coins that offer very high returns are often worthless. This means that when they are exchanged for other currencies even a very high number of coins does not buy much fiat currency. The lower % return coins often have the highest exchange value. Therefore, there is a great deal of experience required in finding coins that have offer 1) a strong value against other coins and 2) offer a good monthly return from the masternode.
The Yieldnodes team therefore offer investors value in 3 ways;
- Researching the best coins to masternode amongst the thousands of coins available, balancing value with returns to create a steady (and significant!) monthly return.
- Pooling funds between multiple investors so that even small investors can benefit from masternodes
- Providing the technical expertise required to create a masternode as proof of stake
As with any asset that fluctuates in value, crypto currencies present a risk because the value of the coins fluctuate against each other and fiat currencies (USD, EUR etc). Risks can be mitigated by masternding several coins at once so that not too much risk is put into one single coin. This creates a portfolio of cryptocurrencies, so even if there is a big swing in value on one coin it doesn’t impact the overall portfolio too much. When you invest in Yieldnodes, you are therefore benefiting from a portfolio of cryptocurrencies, and you’re not just exposed to the success or failure of a single coin. At the time of writing this post, they have hold masternodes for a total of 14 different crypto’s. Hopefully that gives you some indication of the scope of the research and management of this platform.
Applying the Secret Sauce
In addition to pooling funds and setting up a portfolio of masternodes, the Yieldnodes team also use their extensive experience to apply a “secret sauce” to all of this. The future of the sector requires people to not only back, but also to use crytocurrency as a realistic alternative to fiat currencies. For cryptocurrencies to stand the test of time, they therefore need to have strong community support and a real world purpose. Yieldnodes are therefore using their experience to buy certain cryptocurrencies and developing them to have real world usage. They don’t own all of the coins that they masternode, but there are distinct advantages of owning some of their own coins, as well as masternoding other popular coins.
An example of this is their acquisition of Sapphire coin. This coin was about to be terminated by the original developers, but because it had a strong community behind it, Yieldnodes took a stake in the coin and became the developers. Because it’s a POS coin, it immediately became part of the portfolio for Yieldnodes investors, and to secure the future of the coin they also set about developing the coin and finding uses for it, creating all kinds of resources, including an online store where Sapphire coins can be spent (https://sappshopping.com/products/). Yieldnodes therefore took a failing coin with no real world usage and transformed it into a valuable asset that can now grow in usage and value.
How To Invest
Now we understand how the profits/returns are generated, I wanted to explain just how easy it is to get involved and invest in this platform. You do not need prior cryptocurrency experience in order to invest in this platform! In fact, you don’t even need to own any cryptocurrency to invest in the platform because they accept deposits in fiat currencies such as US dollar and Euro’s using payment methods such as Visa, Mastercard or even bank wire. Therefore, you can transfer funds directly from your bank to Yieldnodes, and they will convert it to cryptocurrency and invest it for you, taking care of everything on your behalf.
Once your funds are invested you can choose to either have your monthly returns paid out to you, or you can compound them. You can even split it – compounding some profits and withdrawing the rest. Personally I have opted to compound, and I will continue to do so for the foreseeable future.
You need to be aware though that for any invested funds (your initial deposit and andy compounded profits), there is a 6 month minimum investment period, so do not invest funds you are likely to need back any time soon. After funds have been invested for 6 months you are free to withdraw them or leave them to continue to earn profits indefinitely (the website states 2 year maximum term, but you can keep funds with them for as long as you want after the 6 month initial contract has ended and have complete flexibility on when to withdraw). Also, it’s worth pointing out that although you can deposit in multiple currencies, the monthly profits are paid back to you in bitcoin. I will therefore be providing my subscribers with some instructions and ideas for those that are not sure what to do once you own bitcoins (I will show you how to either spend them directly using a visa card or how to easily get them converted back to a fiat currency of your choice and paid to your bank).
NOTE: You can also add new deposits to the platform whenever you like. Some people are choosing to “scale-in” to this platform by making an initial deposit and then adding more funds each month so they have an ever-increasing investment account. This is especially powerful when compouding returns and each mont you will have not just the compounded profits, but also new deposits being added, which themselves will provide compounded returns.
I find this entire project by Yieldnodes to be both exciting and a bit of a no-brainer as an investor. This is a totally new way of investing, and yet the cryptocurrency sector is already very well established and growing extremely quickly. Ofterntimes, the investing is this sector is confusing and requires a certain amount of technical ability. At the very least, it requires a lot of time to research and learn what and how to buy different coins. Yieldnodes have removed all of the complications in investing, making it extremely easy to get started.
As an investor, I consider this to be lower risk than forex and stocks trading, and yet, with potential returns exceeding 224% per annum (with compounding) I really couldn’t ask for a better return, especially for so little effort being required on my part. I’m a big fan of this platform, and I think they’ve done a great job in making what is a fairly complicated investment opportunity into a very accessible form of investing. They say that knowledge is power, but in this case I would say that knowledge is profit!
Frequently Asked Questions
How much do I need to invest?
The minimum investment amount is €500
The maximum deposit is €250,000
You should invest an amount that your are comfortable with, and remember that there is a 6 month contract, so do not invest funds you may need access to in the near future.
Do You Accept My Country?
Yieldnodes currently accept investors from all countries.
Can I Access My Money At Any Time?
Your funds will be locked in for the first 6 months, and then continue to be invested for a total of 24 months, unless you request to withdraw them. It might be possible to withdraw your funds within the 6 month lock-in period, but this is at the discretion of Yieldnodes and costs are likely to be incurred, meaning you could get back less than you invested.
You can withdraw profits from your first monthly earnings no (i.e profits are not locked in, so they can be withdrawn or reinvested).
What Are The Risks?
The returns on masternoding are relatively fixed (in percentage terms) and the portfolio is very balanced, meaning that there is quite low risk in terms of monthly returns dropping and risk to capital. There is an inherent risk in holding cryptocurrencies though because they fluctuate against fiat currencies such as the US Dollar and the Euro. Should crypto currency value plummet then this can impact the value of investments and the net returns. Values have been steady for several years now though, and the fluctuating price can also be a benefit if crypto values are increasing.
What Are The Monthly Returns?
So far the platform is generating an average return of 10.3% per month.
Can I Compound My Profits?
Yes! This is one of the most exciting parts of the platform. Monthly returns can be set to AUTOMATICALLY compound so that you can leave your investment to grow completely on autopilot.
Current returns suggest that compounding profits could lead to returns of 224.3%
Can I Withdraw Profits?
Yes. Profits will be paid to your dashboard at the beginning of every month and you can request to withdraw them. WIthdrawals will be paid on 8th of each month.
What If I Don’t Own Any Cryptocurrecny?
You don’t need to own cryptocurrency to invest in Yieldnodes. You invest in fiat currency (such as US dollar, Euro’s, British pound etc) using credit/debit cards or bank wire, and the funds will be converted to bitcoin and then used for master-noding. If you hold Bitcoin though you can pay that directly to your own Yieldnodes wallet to find your account.
How Is My Money Invested?
Your investment will pooled along with other investors to buy masternodes for various cryptocurrencies. Your funds will be part of well over $1million of invested funds and will get a monthly return baked on the profit generated by the portfolio each month.
What Is Sapphire?
Sapphire is a cryptocurrency that Yieldnodes acquired. It provides some of the masternode profits for the portfolio, but is one of only 1 currencies. Because Yieldnodes is now the developer for Sapphire, this is a good coin to support and they have various projects planned that will help the currency to grow.
Are There Any Costs/Fees?
The platform is completely free to join and there are no membership/subscription fees. The ongoing management costs of the platform are taken from the monthly profits, and the returns shown are net of any fees taken by Yieldnodes.
Is Yieldnodes A Scam?
Yieldnodes is certainly not a scam, and I have my own money invested in this platform. I have found the owners to be extremely genuine and trustworthy, as well as being highly knowledgeable in the crypto space. I have no hesitation in recommending them or their platform.
I hope you enjoyed reading this Yieldnodes review. Please read more here – https://yieldnodes.com/
We also cover this topic in our article about the Best Bitcoin Investment 2020