Table of Contents
Yieldnodes Pro Review
Free
50
I do not recommend people to invest in this project. Since October 2022, this project has collapsed and around 90% of investor funds has been lost.
Pros
- Highly rated/reviewed
- Easy to set up and use
- Completely passive income
Cons
- Withdrawals blocked
- New organization
- High Risk
- Lost all transparency and trust
- Unregulated
Updates & Warnings!
- Since the beginning of October 2022 the Yieldnodes team has stated the project has collapsed!
- They only have around 10% of the investor's account values, 90% was lost
- They will bring in new assets to attach them to NFT's and their coins will represent these assets
- The new assets are mainly in the energy sector in Germany and Iran
- The promised return is 5% per quarter
- Investors will have the option to sell their NFT's
Key Features
- Monthly return of 5-10% (till October 2022) – This is now 5% per quarter
- Auto-compounding can be set from 0 to 100%
- Minimum €500 to maximum €250k deposit – Deposits are now blocked
- Withdrawals need to be made one month in advance via Crypto Tether (USDT), Sapphire (SAPP) or Bitcoin (BTC) – Withdrawals are now blocked
- Affiliate rewards: 5% of the deposits of your referrals – This is now scrapped
What is Yieldnodes Pro and how does it work?
Yieldnodes is an organisation that masternodes cryptocurrencies and launches several crypto projects.
What is masternoding?
A master node is a node server operating within a network, just like any other full node. Full nodes are crucial because they process transactions and store them in the blockchain.
A master node operator, on the other hand, has more privileges than a typical full node operator and is in charge of managing more important tasks, which results in bigger incentives for the operator.
The master node operator must deposit a specific quantity of the appropriate coin (known as “staking”) in order to become a master node . The operator receives rewards based on the relevant coin in exchange for doing the necessary activities, providing the necessary computing power, and providing storage space (proof-of-stake).
Extraordinary gains can be gained by diligently running the proper master nodes while continuously monitoring and optimizing with innovative tactics.
What masternoding is not:
- It is not trading, it is therefore susceptible to coin price fluctuations.
- It is not Mining (Proof of Work) which requires complex calculations and consumes a lot of energy. Masternoding involves Staking (proof of stake) and the node can be closed at any time. The biggest risk here is that coins decrease in value.
Does Yieldnodes only do masternoding?
Besides masternoding Yieldnodes also has a lot of other projects such as Helio, their own “banking” system, Sapphire, a gift card platform, Azzure (travel crypto) and 777Jackpot (casino coin) to name a few.
All of these project combine as part of a bigger project called Deconomy. Decenomy stands for DECentralized ecoNOMY. The goal is to create a fully functional decentralized economy.
How does Yieldnodes make money?
It gives 87.5% of its profits to its members like you and me, 12.5% they keep to themselves (this used to be 85%-15%). You might wonder why they only keep 12.5%, well so do I. However, I believe economy of scale works in their favour: by giving high yields, they attract loads of investors, which gives them higher absolute numbers. On top of that the yieldnodes founders are also investors like you and I, so they also benefit from this split.
Profitability (Personal Results included)
On the Yieldnodes website you'll find a comparison between Yieldnodes and other investments (see image below). According to this graph and my own experience, Yieldnodes vastly outperforms other investments.
I've had returns of 6 to 10% per month, with an APY of around 140% and an APR of around 91% in my first 12 months (excl. new deposits).
Note: APY includes the compounding effect, APR does not.
Yieldnodes also allows you to see how the current month is progressing by showing you weekly results.
What are the risks associated with Yieldnodes Pro?
The risks outlined below are my own personally perceived risks and might not reflect reality. I believe there are several types of risks:
- Liquidity Risk: There is the risk that Yieldnodes doesn't have enough liquidity to pay its investors. That means that if there is a big amount of investors who withdraw their money Yieldnodes might not have enough cash to pay them. Yieldnodes had several measures (withdrawal restrictions) in place to reduce this risk, but it still failed.
- (Crypto) Currency depreciation: currencies can drop in value. After all, what is a 10% return/month on a currency if it then loses 90% of its value? This is unfortunately what happened with Yieldnodes.
- Security risk: There is a risk that Yieldnodes gets hacked and funds get stolen. I believe Yieldnodes is making considerable efforts in this case too. On the user side they allow 2FA and email notifications.
- Regulatory risk: There is also the risk that the local government or their business partners cease to cooperate with them. They are also mitigating this risk by signing a deal with a small island nation (Sao Tome and Principe). This deal has now also collapsed.
How do I sign up, deposit and withdraw?
Deposits and withdrawals have been blocked. I will update this section once Yieldnodes Pro is active.
Is Yieldnodes a scam? Is it safe?
It is highly unlikely to be a scam. The founders are very public about who they are (pictures, linkedin profiles, etc.) and the risk would be too high for them if they were simply scamming people. After recent events, I still do not believe they scammed people however, they have lied to investors and misinformed them.
Final thoughts
Yieldnodes used to be my favourite investment project, but this has changed since October 2022. The company has mishandled investors funds, frozen withdrawals, lost 90% of peoples' funds and have introduced a completely different business plan which the investors didn't sign up for.
FAQ
How do you use yieldnodes?
I use yieldnodes as part of a diversified strategy (aside stocks, ETFs, staking and real estate). I auto-compound 100% because this maximises my returns and I know that all my investments will be withdrawable after 6 months.
My personal plan was to withdraw most of my initial investment once it has tripled. I'll see when the time comes.
Do I need any technical skills to use Yieldnodes Pro?
No, you do not need any technical skills. You only need to be able to transfer funds from your crypto exchange to yieldnodes. If don't have a crypto exchange (e.g. Binance), don't worry they are easy to set up. I recommend transferring using USDT (or USDC) because it's a stablecoin and the value is linked to USD. This eliminates any exchange risks.
Can I access my money at any time? How about my initial deposit?
The simple answer is no. Your (initial or other) deposit (or reinvested profit) is locked for 6 months. On top of this, if you wish to withdraw funds you'll need to request it one month in advance. You can withdraw profits immediately if you don't reinvest them.
If you wish to override all of these conditions you can do an emergency withdrawal which will be processed within 72 hrs but will cost you 25% of the withdrawn amount.
I know it's not pleasant to know you can't immediately withdraw your funds (without a penalty), but I believe the returns are worth it and it is essential for the platforms future.
Who can sign up with Yieldnodes Pro?
I believe Yieldnodes accepts most countries, you'll need access to a crypto currency exchange though.
Can I lose money? What is the risk?
Yes you can lose your money. Just to give a few examples: regulators can freeze the funds, the crypto market can collapse, etc. I've mentioned the types of risks before, scroll up to see them. Their coins have collapsed.
Are there any fees/costs?
No, you'll never need to pay anything.
Can I compound my returns?
Yes you can. You can either set a percentage (0-100%) to auto-compound or you can manually reinvest your funds as you wish.
What currency does Yieldnodes use? Is my investment impacted by Bitcoin?
Yieldnodes expresses your funds in EUR, however they masternode and have different projects in different cryptocurrencies.
You investment is pegged to EUR and is therefore quite stable, however it is impacted by different cryptocurrencies (not Bitcoin alone).
Are the yields sustainable?
No, they are not, the yield has dropped to 5% per quarter.
Is yieldnodes Pro regulated? Are there audits?
No they are not regulated, however they allow Yieldnode members/users like you and I to audit them.
Does yieldnodes Pro have a corporate acount?
Yes it does, I'm using it. You'll need to submit company related documents to register (memorandum, certificate of incorporation, etc.).
What are the tax implications?
I cannot answer this for you, it varies by country, in many countries crypto projects are a grey area. I use my company to invest and declare it as currency exchange profits.
What are the monthly returns?
It used to be 5-10% monthly return, but now 5% per quarter.
Do I need to own crypto to invest? If yes, what's the minimum?
I wouldn't advise investing in Yieldnodes pro.