Yieldnodes Review 2020 – Is This Platform Legit Or A Scam?

  • Easy To Use?
  • Cost
  • Profitability
  • Time Needed
5

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. <<

Key Features

  • 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;

  1. Researching the best coins to masternode amongst the thousands of coins available, balancing value with returns to create a steady (and significant!) monthly return.
  2. Pooling funds between multiple investors so that even small investors can benefit from masternodes
  3. Providing the technical expertise required to create a masternode as proof of stake

Spreading Risk

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.

Conclusion

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

40 thoughts on “Yieldnodes Review 2020 – Is This Platform Legit Or A Scam?”

  1. Hi Jonathon,
    Thank you so much for highlighting this great investment option. I certainly will be using your link to open an account with Yieldnodes. Please keep up the great work you are doing in exposing the wonderful opportunities available to us small investors in the Crypto environment. Looking forward to your next posts on other opportunities.
    Regards, Bryson Furner.

    Reply
  2. Thanks for this excellent review which aroused my interest. One more question Jonathan: how secure are deposits with Yieldnodes from an IT security perspective? You regularly read about hacks in the crypto world where large amounts of cryptos (such as Bitcoins) are digitally stolen. That could leave one penniless if that would happen. How does Yieldnodes prevent this from happening?

    Reply
    • I asked them the same question, and I’ll have an interview posted to my Youtube channel soon where I ask them similar important questions so they can answer direct. I can assure you though that they take security incredibly seriously and do everything they can to minimize risk, including hiding online footprints and storing coins securely offline (not in broker wallets). I feel as though the funds are safer with them than with a broker tbh!

      Reply
  3. Hello Jon,
    Once again a knowledgeable post.
    But is the program still open to register?
    I see from the website that they are into bestest and limiting the number of investors.

    Besides it will be good to know by other fellow guys here as- how and which financial institutions safeguard the investors viewpoint that yieldnodes can answer or adhere?

    Reply
    • They are absolutely still open for new customers, but as I say in the video, they may close the doors when they reach about €4m total investment.

      Reply
  4. Hi Jon,
    Interesting video-thanks
    No mention of FCA regulation ?
    What is to stop these guys declaring bankruptcy and running
    off with every bodies loot ?
    (Not suggesting they would)
    But the Finance sector is riddled with Con men and attracts these
    types for ease of fraudulently emptying peoples accounts overnight !

    Reply
    • Hi Peter this is an unregulated investment as stated in my interview video with the CEO. I suppose there’s nothing to stop them from doing something like this, but I can assure you they are doing what they say they are doing (i.e. investing in masternodes) so they are certainly just piling up money ready to sweap it all away into a black hole. There is always a risk like this when you send money to a platform though, and you need to account for this when deciding how much to invest.

      Reply
  5. About Yieldnodes there is also another aspect to take into account about profit yielded by your investment that you forgot to mention in the review video. This is if that your wallet is Bitcoin based so you are always subject to the fluctuation value of this crypto coin. So when you withdraw funds from your wallet and convert them into Euros for instance you have to be much aware of the current market value compared to the market value when you entered.

    Reply
    • Yes absolutely, so fluctations in crypto values is probably the biggest risk, although even if the price of BTC dropped suddenly it would just require those withdrawing to hang tight a bit longer until it recovered.

      Reply
      • I’m a right that fluctuations are only important when you want to withdraw? When you deposit, you see the Euro value directly and also when the process is going on all is in Euro’s.

        Reply
        • It’s true to some extent.Your investment is pegged to the Euro, not a crypto, so the value of Euro you put in is what your investment is based on and the value used when returning your ionvestment and returns in BTC. HOwever, don’t forget whilst invsted you’re always exposed to crypto fluctations between the masternoded coins and BTC. Fluctuations are always important therefore, not necessarily just between fiat and BTC but between the crpytocurrencies themselves.

          Reply
    • They use BTC as a vehicle and than change it into a stablecoin. After that they will change it again into the Masternodecoins. When you want to withdraw you will put the withdrawal amount in euro’s and they will give you the actiual BTC price of that moment and sent your withdrawal in BTC. It is up to you to change it in euro’s or whatever you want, or keep de btc.
      Note: if you sent 2000 euro now, you sent 0.02 BTC. It is possible that BTC went up in valu. Let’s say 2 times. If you do a withdrawal of 2000 euro you than get 0.1 BTC. Or if it devaluated half, you then get 0.4 btc when you withdrawal 2000 euro.

      Reply
      • You’re correct that YN peg the value on invesment to the Euro, not BTC, but you’re paid out in BTC, so what I’m talking about is let’s say you get paid a return of €1,000 by yieldnodes and this buys (for example) 0.1 BTC. If you send this to a wallet and suddenly btc drops by 50% in value then suddenly your BTC has a value of only €500. Thus, I say that in such circumstance people can hold on to await for it to recover.

        Reply
  6. i came here coz of mti and now i decide to join with Yieldnodes at a time. hope this make more profit.
    thankyou from thailand

    Reply
  7. Am totally new to this, but have joined Yield Nodes today. With a bit of help from a fellow investor, it was incredibly easy to set up. Am looking forward to my new journey.

    Reply
  8. Hi

    This sounds interesting although I have to say that the reviews on trust pilot seem a little suspect imo. Lots of people with 1 review, lots posted on the same day etc. Should that concern me? I don’t necessarily mind taking a punt on something risky, I just wanted to check that you can’t lose more than your initial deposit. Can you confirm?

    Thanks

    Reply
    • I seriously doubt that the reviews are fake. They asked their beta testers to leave them reviews as part of their early access privelages, and probaly emailed them all ont eh same day asking them to leave a review hence they all did it at the same time. Genuinely I have not heard a bad word said against this company so I can believe that they have very good reviews.

      Reply
      • Thanks for getting back, that makes sense. And can I just confirm that you can’t, in some sort of meltdown scenario, lose more than you deposit?

        Reply
  9. Hi Jon,

    So after researching into Yield Nodes and not finding a single bad word said about them, and liking what I heard from the CEO interviews, I decided to make my first deposit. And I’m sure like any other investor would I went to work out how much money I’d be making long term.

    Stephan said himself he can see it running for 10 years, so I worked out how much I’d make over that time, which was just (only 28 million) over 4 billion pounds. Does this genuinely seem feasible they’d be dishing out these kinds of returns to thousands of investors?

    Reply
    • Hi Stefan thanks for sharing your thoughts. You’re right, the compound potential for this is huge over the long term. I’m also hopeful it will run for 10 years, but cryptocurrency is still in it’s infancy so I’ll be taking it one month at a time.
      I’m not sure if you’re scepticle that the returns are achiveable or if something might tempt the owners not to pay out. Remember though that YN are making good profits from this and are transparent so any wrongdoing on their behalf would have serious consequences. I’m not saying it couldn’t happen, but when you’re already making good money why risk everything? I like to think that not everyone in the crypto space is a crook, and I certainly trust the owners of YN, but I also factored in the potential risks when deciding how much to invest and would encourage others to do the same.

      Reply
  10. Hi,
    Great review!
    So the price of Bitcoin does not really affect this investment, if you believe bitcoin will rise more than 10% per month you should keep them in you’re wallet instead?

    Reply
    • Hi Patrick, that’s not quite true no. The price of bitcoin doesn’t directly impact the value of funds you invest in Yieldnodes, but price (and demand) growth in bitcoin does normally correlate to better retyurns from masternoding, as we saw in October with a return of 13.5% that month. Also, keep in mind that bitcoin price growth is not compounding, but YN returns are. Therefore, if had the same amount invested in both and they were both to increase by 10% per month for 12 months, your YN investment would be worth significantly more than your bitcoin. Personally I have both, so money hodling bitcoin to enjoy the rise and money in YN to compound and also benefit from crypo in a different way.

      Reply
      • Thanks fore you input, I am also in MTI witch has increased my bitcoins a lot this year. Splitting the investment seams like a good strategy, did my first deposit to yield nods last weak after watching you’re review, very exited to see how it works out.

        Reply
      • So am I correct In assuming that yieldnodes is not pegged to the bitcoin price but rather pegged to the Euro? and that the euro bitcoin price is important here because ones value sits in euro and has to be exchanged back to bitcoin. Thus if the bitcoin price increases like it has now by 40% we loose out on that growth and only benefit in the growth of the yield nodes without the bitcoin inflation?

        Reply
        • Hi Audrey. Yes that’s correct, but remember that the YN return is compounding whereas BTC growth isn’t. Plus the price of BTC can go down too of course. I’ve kept some BTC in an exchange to enjoy the current rally but I still expect YN to outperform BTC over the coming years if you’re compouding.

          Reply
  11. Thanks so much for this review. I am interested in this investment. But I want you to clarify what you said under “What Are The Risks?” before proceeding.

    Are you saying that the fluctuations can cause the monthly or annual ROI such that it may be less than the fixed 10% payout or the compounded payout if I opt for compunding.

    And also that my invested capital can be affected?

    I will appreciate your clarifications on both please before I invest.

    Thank you.

    Reply
    • Hi Segun,

      Yes the crypto pairs are very volatile, so a masternoded coin might yield 20% per month return, but that coin needs to be converted to btc so if the price of the coin crashed for a few days then that impacts how much BTC we receive and therefore the monthly returns fluctuate. These fluctuations don’t impact your invested capital though. The value of that is locked in a Euro value.

      Reply

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