This is my ongoing, comprehensive review of YieldNodes from my personal experience investing in their server rental program. Since it’s a unique “pay for service” system, I want to give you the benefit of my research into its mechanics, management, and risks, which I did before I invested.
I will be updating this review regularly, so be sure to check back monthly to see my returns, under “UPDATES” below.
If you decide to participate in YieldNodes and use the links on this page or my site, I can help you get started. Just contact me and I’ll be happy to help. The link gives me a small “thank you” bonus but doesn’t cost you anything. If my objective review helps you make an informed decision, my goal is achieved regardless of how you choose.
My investment is going very well but it’s important to understand the risks. Anything to do with blockchain and crypto carries certain risks and it’s important to understand those before putting your hard-earned money at play. I will be addressing these risks herein.
I hope you find my YieldNodes review useful in your assessment.
Let’s dive in…but first, some update statistics.
- Masternodes operated: 2000-4000, Masternoding alternating with POS Staking
- Integrated projects contributing to the yield: 19
- Revenue generated for November 2021: 10.1%
- Revenue generated for December 2021: 7.2%
- Revenue generated for January 2022: 8.0%
- Revenue Generated for February 2022: 8.3%
- Revenue Generated for March 2022: 7.4%
- Revenue Generated for April 2022: 8.3%
- Revenue Generated for May 2022: 6.5%
- Revenue Generated for June 2022: 6.1%
- Revenue Generated for July 2022: 9.2%
- Revenue Generated for August 2022: 6.1%
Note: Average monthly yield for Nov., 2021 thru August 2022 was 7.7% during Bitcoin’s 70% and the NASDAQ’s 30% corrections.
- Average monthly yield (last 34 months): 10%
– this equates to an annual yield of 120% (or 213.84% compounded)
As an invited auditor for the YieldNodes annual audit in July 2022, here is my full audit report.
I sat down with YieldNodes CEO Steve Hoermann to discuss his views on the current cryptocurrency landscape and how this affects yields, revenue, and potential investors in the YieldNodes masternoding project.
A May 2022 discussion with YieldNodes CEO Steve Hoermann with an update on YieldNodes activities, Decenomy projects, Ukrainian support efforts, the Flits wallet partnership, the upcoming audit, the cryptocurrency markets, passive income, yields, risks and future prospects.
What is YieldNodes
YieldNodes is a comprehensive, multi-tiered, blockchain-based, MasterNode rental program. Revenue is generated through:
- Price gains
that all work together to leverage for increased yields within their respective ecosystems.
Since inception in 2019, YieldNodes has grown considerably to also include other areas that stabilize and grow revenue for participants:
- Its own listed cryptocoin, Sapphire
- Its own decentralized exchanges: https://dex.heliobank.net and https://birake.com/
- A crypto-denominated shopping area
- More services, partnerships and business cases that are in development
Over the first 26 months of beta-testing and live operations, YieldNodes generated for participants a return of 275.2% despite the pandemic.
What is Masternoding
A Masternode is a server with a unique status in a network that provides special services, validates transactions, and participates in network governance. For providing these services, the masternode earns rewards that creates a commission-like incentive for continuing to provide such integral services.
A master node must lock up, “stake,” coins to gain a master node status. It is basically like putting money in escrow in order to get your status and, later, the rewards. Another way to think about it is like getting a bank loan and offering assets as collateral to secure it.
Masternoding is a very effective way of generating blockchain-based passive income but comes with some risks and challenges if not done properly. Generally, it involves downloading the full node, staking many tokens, configuring the nodes, and connecting them to the network.
To set up masternodes on your own (not required if you join YieldNodes), you must get locked to a specific currency, and the return for each currency varies. The number of tokens required to stake can be very high and cost tens of thousands of dollars. This costly initial investment is itself a risk and often too much for many people to incur.
I’ve written more about masternoding here.
The easier and more affordable option, with much fewer – and manageable — risks, is to participate with a company that has the expertise and experience in masternoding.
YieldNodes is the company I found to partner with to benefit from the lucrative services related to Masternoding while meeting my needs for security of my funds and minimizing risks. Further, the pooled resources of YieldNodes and its members provides for great diversity and stability of its revenue sources, resulting in the increased yields that all members share in proportionately.
YieldNodes Management and Tech Team
I like the fact that the management is fully transparent in every respect. It appears to be a company philosophy, which engendered my trust and the trust of hundreds of participants. This transparency and success have earned YieldNodes a 4.7 trust rating on Trustpilot.
- Monthly returns, actual and projected, from masternodes of 5 to 15% per month
- The proceeds are shared 85% to participants and 15% to the program (the rental payment).
- If the yield drops below 5% for 3 consecutive months, the rental payment will be returned with any accrued profits
- Total compounded return 1167.09% (since inception in Sept 2019)
- Average monthly yield (last 26 months): 11% – this equates to an annual yield of 132% (or 249.85% compounded)
- Minimum deposit: €500 (~US$565); maximum €250,000 (~US$281,000)
- Minimum term: 6 months
- Deposits can be made in US Dollar, Euro, Visa, Mastercard, SAPP Vouchers, Bank Wire, or Bitcoin from any country
- Yields are paid monthly in bitcoin and can be withdrawn (after 6-month term) or automatically compounded
- Free to join and no membership or subscription fees. Management fees are 15% of the profits and the yields shown are net of any fees taken by YieldNodes.
>> Get Started Today Here: YieldNodes <<
How YieldNodes Generates Returns
YieldNodes makes revenue from the increase in value of the numerous coins in its staking portfolio, with some gaining value, some losing value. Its expertise is in selecting coins that have a higher probability of increasing value, balancing for risk, for its masternoding, thereby returns to its members.
This requires a level of technical expertise to keep the system operating optimally, creating masternodes as proof-of-stakes, and ensuring they run reliably and with operational integrity. Your deposits are pooled with other investors to buy masternodes for various cryptocurrencies. Your funds will be part of over $10million of operational funds. You will get a monthly return based on the profit generated by the portfolio each month.
How YieldNodes Manages and Reduces Risks
All assets fluctuate in value, and this creates risk. Cryptocurrencies can carry more volatility than more traditional asset classes, but this is also where the opportunity lies. Bitcoin, for example, holds the title as the greatest appreciating asset class since its inception in 2009 despite its volatility.
But with those remarkable yields comes increased risk. Putting your money in any cryptocurrency is a risk. The question becomes, how to manage and reduce those risks?
YieldNodes can be classified as a high-risk participation model. It’s important to do your own due diligence before participating.
YieldNodes manages risks by masternoding a carefully researched, analyzed, and selected portfolio of cryptocurrencies so the inevitable volatility is spread across a diverse pool of coins.
At the time of this writing there are 19 integrated projects contributing to the monthly yields.
In additional to pooling funds to create a system of diverse masternodes, the YieldNodes team also invests in the ownership of coins that have real-world usage. For example, their acquisition of Sapphire coin. The coin was about to be dissolved by its developers, but because it had strong community support, YieldNodes took a stake in the coin and became the developers. Because it is a proof-of-stake coin, it is now part of YieldNodes portfolio, which members benefit from.
The team then set out developing the coin and real-world uses for it, like an online store where Sapphire coins can be spent (https://sappshopping.com/products).
YieldNodes saved a dying coin with no use-cases, transformed it into a valuable asset that can grow in usage and value, which added value to the shared masternoding portfolio.
In my view, it’s this entrepreneurial spirit and ability to take action that makes the future of YieldNodes bright and helps mitigate risks. A candid treatment and assessment of the risks can be found here by YieldNodes CEO, Steve H.
Is YieldNodes a Scam or Legitimate Blockchain Platform
With so many scammers out there, one of the most basic acts of due diligence is to determine if YieldNodes is legitimate opportunity for passive income or a scam.
Here’s how I came to my conclusion that they are a legitimate operation worthy of my heard-earned money:
- I spoke with the CEO on a Skype call. He’s a real person with real background that qualifies him to run this operation.
- I checked out the background of the rest of the team.
- I tried to find bad press but only found ones that were promoting other programs, so the conflict of interest disqualified them as objective sources.
- I read every one of the hundreds of reviews on Trustpilot, the vast majority being very positive, 4-to-5-star reviews. Sure, there are some unfriendly ones, but that will be the case with any offer.
- I watched their progress for months before depositing a small amount of USD to verify that they’d live up to their promises. They did; my first month I received a 10.1% return.
- By becoming a member, I was allowed to review their audits, to assess if it is a Ponzi scheme (an investment scam that involves the payment of purported returns to existing investors from funds contributed by new investors). The independent members (not employees of the company) confirmed that the balances held in the YieldNodes ecosystem match and exceed the amount necessary to cover deposits and compounded profits. Near as I can tell YieldNodes is not a Ponzi scheme.
- Like any entrepreneurial endeavor, there is the risk of the principals absconding with the investments. My interaction with the management and their transparency has only increased my trust in their integrity. Further, the team’s share of profits, 15%, is a strong motivator to keep them in the game for the long run.
How Do I Get Started With YieldNodes
Getting started is easy. You do not need any experience with cryptocurrencies to participate, and you don’t need to own any cryptocurrencies to invest because they accept deposits in US dollar and Euros using Visa, Mastercard, and bank wire. YieldNodes will convert your fiat deposits to Bitcoin and contribute to the portfolio on your behalf. You can of course deposit Bitcoin if desired.
>> Get Started Today Here: YieldNodes <<
After your funds are deposited, you can choose to have monthly returns paid out (after 6-month minimum term) or have them compounded by adding them to your balance (after the first month).
Any invested funds, either your original deposit or compounded profits, have a minimum 6-month term. This is because YieldNodes needs that minimum to commit for staking the funds related to your share of the investment pool. So don’t deposit any funds that you’ll need during that period. The monthly yields are paid in Bitcoin. After your funds have been on deposit for 6 months you can withdraw them or leave them to compound. You can also choose to deposit more funds monthly to increase your share and then compound those for greater returns.
YieldNodes has been operating profitably for 2 years as of this writing. They give members access to their audits and are transparent about risks and monthly yields. The platform is a new way of profiting and earning passive income from the new blockchain economy, without having to become mired in the complexities of technical analysis, masternoding, researching and tracking fundamental and trends.
I hope you found value in my Yieldnodes review. Please read more here at the YieldNodes site.