Is YieldNodes a scam? Are 8% return sustainable? All the risks explained and my experience so far

3 min readFeb 7, 2022

YieldNodes is a risky but very interesting investment opportunity. Since the start in October 2019 they have averaged a return of 10%+ monthly in value According to their own disclaimer it is

NOT regulated or supervised by any financial entity yet
STILL a VERY RISKY participation model, and things can always go sour
NOT trading Cryptos and NOT a Bitcoin pegged investment
By NO MEANS a bank account or retirement fund!

Businessmodel

As you deposit funds, YieldNodes uses them to rent server infrastructure to run MasterNodes. MasterNodes validate transactions in Proof-of-stake blockchains and earn fees. YieldNodes works with more than 10 different, lesser known blockchains and even took over management of some coins.

Their long-term vision includes building the decentralized economy DECENOMY. CEO Steve is very transparent and is aware that the current rates are very high and might go down in the future.

Check out this great overview of YieldNodes, the audit and some questions answered by the CEO. He even interviews one of the auditors:

Is this a Bitcoin investment?

No. Bitcoin is just used as a medium of transferring funds. In the UI everything is calculated in EUR.

What happens to your money?

The money you invested is locked for 6 months and used to run MasterNode infrastructure. After that, you can withdraw it. All profits can be paid out or reinvested immediately each month. Reinvested funds are locked again for 6 months. This period is necessary according to YieldNodes to use the capital with maximum efficiency, as the infrastructure contracts need a certain runtime.

When and how can you withdraw?

Withdrawal can be requested once per month, before the 15th. Payouts are processed on the 8th of the next month.

Example: Withdrawal request between Feb 1st — Feb 15th are processed on March 8th.

Is there a minimum deposit?

Yes and no. From 500 EUR your money is actively earning the monthly yield. You can however deposit smaller amounts which are added to your account. Once you reach the 500 EUR, you start earning.

Is YieldNodes a scam?

Of course, as I am investing with YieldNodes I am a bit biased. My short answer is be No. With all my research on YieldNodes, their operations and lurking in the unofficial Telegram group, talking to users, I came to the conclusion to trust the project with a sum of money I am willing to lose.

Let me know your questions in the comments, I try to answer everything that I can.

My experience so far

My experience was great so far. Deposit was credited via USDT on Tron Network the same day. I earned 8% on my deposit for January. Currently, I am testing my first withdraw. I will keep you updated.

Want to get started with YieldNodes?

Do your own research on YieldNodes, in the end I am just a random guy on the internet!
Use my affiliate link (click here) to register, and I earn 5% of your deposit with no extra cost for you. Thanks in advance!
Only invest what you can afford to lose
Make a deposit via Bitcoin (many FIAT onramp provider are supported where you can buy Bitcoin with a credit card or SEPA transfer) or use USDT (Tron Network)
Decide whether you want to pay out your earnings or compound them!
Let me know if you would like to know more, you can reach me on Twitter

Originally published at https://www.publish0x.com.