Hello fellow investor friend! This article tells you about the basics of earning money via DeFi (Decentralized Finance) portals. DeFi covers all kinds of aspects, from alternative currencies that are not managed in a centralized way, up to services that you can pay with these currencies.

In this article I'm focusing on one particular DeFi service: YieldNodes.

What is YieldNodes?

Speaking in simple terms, YieldNodes (or YN, as also commonly referred to on the YieldNodes subreddit) allows you to "stake" an amount of money and earn interest on it every month. Nothing new you say? Well, you're right, but:

YieldNodes offers a much higher interest rate compared to classical investment methods. The main idea is this:

• You give YN an amount of money
• They invest part of this money in masternodes for current DeFi cryptocurrencies
• Another part is invested in one of their many other projects
• You get between 5-15% of yield every month
• 6 month after earning it, you can withdraw the yield

The process is rather straight forward. You sign up, deposit the amount of money you want to invest. Then a grace period of seven days has to pass in which your deposit is invested into the respective projects. After that, you can see on their website a weekly report detailing how much you made in each week:

This shows that August 2022 brought in 6.1% of your investments, while September 2022 already reaped 3.2%. You can activate an auto-reinvest function that allows you to automatically compound your earnings, or deposit using one of several currencies (FIAT and non-FIAT):

Here is a past overview of how YN performed since 2019 (assuming you had initially invested €5000) - you would have around €130.000 by now. Of course past performance is no safe indicator for future performance, but it is definitely a green flag for the team.

What are my prerequisites for investing in YN?

The website states a minimum of €500 to get started. Should you not have that kind of money handy, you can still sign up right away and afterwards ask them to lower your limit to €100. This takes a lot of risk out of YN if you just want to give it a shot. You can of course withdraw your money again after 6 months - likely with a much-welcomed bonus of earnings.

Other than that, they require KYC for withdrawals and state that no money may be invested that stems from criminal activity.

Final Words

The YN team has a long-standing reputation of doing the right thing. YN has been around for a long time, and lots of people have gotten a lot of money out of it. You should check their website for more details, but my personal opinion is that they are legit and stick to a great cause - de-risking DeFi.

With everything crypto, YieldNodes has a certain risk associated to it, but this goes without saying for all crypto projects. So this is not financial advice - do your own research before investing in anything like this.

One of the major DeFi players is the Deconomy community. For more info on their projects, check out their website!