What is a Blockchain masternode? and How you can benefit from it?
Tags: blockchain, crypto, bitcoin, masternodes
Published: 2022-06-22 13:10:30

## The Crypto Passive Income Revolution
I like to explore new and innovative investment opportunities. It's always exciting when I discover new, interesting models. I prefer investments that generate passive monthly income. I invest the majority of my crypto funds in bitcoin, and I believe it will be around for a long time to come. However, there are other opportunities in the cryptocurrency world, such as [Yieldnodes](https://yieldnodes.com?a=A6LrQEVWlVoxReG&trk=devto).

Make sure you read this post if you're a crypto enthusiast or like learning about new investment models. You could find Yieldnodes to be a great path to take. New investment opportunities are constantly emerging as a result of the blockchain economy.

Perhaps you found a DeFi platform or two on your Google searches as well. In my experience, the returns were not so high and consistent.

## Master Nodes: What Are They?
Bitcoin, Ethereum, and Dash's master nodes are parts of the cryptocurrency infrastructure. Regular nodes add transactions to the blockchain, but master nodes do not do so. The blockchain is instead governed by the miners, who verify new blocks.


## Masternoding = High Returns = YieldNodes

Even so, there was something intriguing about this master noding thing. We should dig deeper into it. I thoroughly investigated Yieldnodes validity. I investigated the underlying model and examined masternodes. These masternodes generate the revenue behind the platform. We will discuss masternoding in greater detail later. I was attracted to the platform due to its fundamental value proposition as well.

{% embed https://www.youtube.com/embed/HeBYyoFEaqY?start=8 %}

It is possible for anything to happen in the crypto world, and every investment carries a high risk. So, as I had previously stated, consider every crypto investment as high risk, and with a grain of salt.

![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/cqy7tiis12i13yyti81k.png) 
_[Yieldnodes](https://yieldnodes.com?a=A6LrQEVWlVoxReG&trk=devto) is an innovative fund powered by masternodes and staking techniques_



## What is Yieldnodes?
Using Masternodes, a building block of many cryptocurrencies and blockchain networks, Yieldnodes generates passive income and value. In contrast with many other crypto services, Yieldnodes do not trade but run servers to host different software applications and cryptocurrency projects. Think of it as an impressive long-term node rental program.

You can invest in several crypto projects run by the team, including spawning new masternode servers, supporting a decentralized crypto exchange, and running multiple crypto projects. Each month, the company aggregates the generated revenue from these activities, so we know what to expect.

## How much to expect? 
_Yieldnodes Calculator Based On Last Year Performance, deposit of $5000_

![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/c1lbowurqkfkfvfrgn79.png)


The platform makes it easy to deposit and track your funds. Payouts are made every 1st of the month after registration. I've been investing since May 2021, and it has worked so far. Additionally, the team sends out a monthly newsletter with the latest progress and activity.

You can deposit funds in Bitcoin easily, but you can also use 3rd party integrations or a bank wire to deposit in Euros or Dollars. Everything worked as expected when I withdrawn funds to a private address. The investment is now safe.

## How does Yieldnodes generate revenue?
Yieldnodes began offering master node rental in late 2019. Many crypto coins use Masternodes as building blocks. As a mining node, it adds blocks to the blockchain. In a network, a masternode is a server. It receives fees for every transaction.

Masternodes validate transactions. The Proof-of-Stake method is more energy-efficient than Proof-of-Work in Bitcoin. Proof of stake, used by many other coins, relies on validators or master nodes.

Creating a masternode requires locking funds. In other words, locked coins are a showing of dedication to the network, which pays in the form of fees and monthly profits. Today, many coins use this mechanism.

## How To Make Money From A Node Rental Program?
Yieldnodes will use your money and deposits to fund and spawn more masternodes for their node rental program and other services they operate. Nearly 4000 masternodes power Yieldnodes. Moreover, master nodes require locked coins, which your investment helps secure.

The team generates coins in several chains using computing power. Investors in Yield nodes rent servers participate in a decentralized blockchain.

![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/8wdk9rt3hf5geey8zyu3.png)
 

## Building trust in yieldnodes
Investing in cryptocurrency is definitely a risk, especially if you want to avoid frauds and scams. People who gave money to the wrong people are regularly featured on social media. So before investing in [Yieldnodes](https://yieldnodes.com?a=A6LrQEVWlVoxReG&trk=devto), I ensured through my preliminary Yieldnodes review journey that they were transparent and honest with me.

As you can see, Yieldnodes has an expert team of blockchain technology and masternode experts, who have worked on this project for the last two years. Transparency and approachability are important to me. Creating a community of crypto enthusiast's who stay on platform long-term, enjoying compounding rate.

> My findings on Yieldnodes
![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/o3rk7wez4d9nodhdhtge.png)
 

## Assessing Risks vs. Rewards
**Why should I invest in Yieldnodes?**

- The monthly return is around 10%. It's a great passive income source that you won't find anywhere else.
- It is possible to compound your investments more than three times a year.
- Bitcoin/USD exchange rates do not affect revenue. Thus, monthly returns remain steady even when rates dip.
- The team is transparent, provides information about the platform through a monthly newsletter, is approachable through support, and there are many positive comments over the web.
- Only the compounded rate needs to be adjusted.
- KYC (Know Your Customer) is required.
- It only takes 250 euros as minimum deposit.

## Do Yieldnodes have any cons?

- You don't control the custody of your money when you invest in cryptocurrencies. Once the cryptocurrency has left your wallet, you are exposed to risk.
- Yieldnodes is currently not regulated by any government agency.
- As opposed to Bitcoin and Ethereum, Masternoding makes money from Altcoins.
- Euros are used instead of Bitcoins. As a result, the yield depends on your Euro deposit.
- Yieldnodes lock your invested funds for 6 months after every deposit. Profits are withdrawn monthly. If you deposit 10K Euro, they're locked for six months. The money deposited back (and closed for six months) or withdrawn is approximately 1000 Euros a month.
- Cold wallets are the most secure, so whenever you use a third party, you take some risks.

## Is it Possible to Invest in [Yieldnodes](https://yieldnodes.com?a=A6LrQEVWlVoxReG&trk=devto)?
Having read this review, understood the risk and reward models of Yieldnodes, and decided how much you want to invest, the process is relatively straightforward. No experience with master nodes required!

## How to Invest in Yieldnodes?

1. [Sign up for](https://yieldnodes.com?a=A6LrQEVWlVoxReG&trk=devto)  a Yieldnodes account.
2. Upload your ID, proof of address, and KYC details, and sign the investment contract.
3. Turn on Google Authentication under 2FA Settings. Important for safety.
4. Invest the desired amount of Bitcoin in your member's area.
5. The platform will invest your money seven days after the transaction settles. Each step will be confirmed by email.
6. The Withdrawal tab allows you to define how much money will be automatically reinvested every month and the compounding rate. Using compounding, you can make more profits over time.
7. You get recurring monthly income!
 

## Is it possible to invest in masternodes without Yieldnodes?

It is possible to invest in masternodes without Yieldnodes, all you'd need is a few accounts.
You need to transfer your bitcoins to birake exchange, then on birake you need to buy the coins you want to masternode on ihostmn. 

Now, you need to withdraw them from birake to ihostmn into the pool that you have joined on ihostmn. 

Hope that makes sense :)
Good luck!