Cryptocurrency investment is quite exciting and can be highly rewarding as you can make a fortune when the market goes your way. However, it can also be a wild ride given the many uncertainties and market volatility.
That said, it is still possible to make money from your crypto assets without selling them by investing with crypto lending and borrowing platforms like Hodlnaut.
Holdnaut allows you to earn interest on any idle crypto assets. Additionally, you can also swap the tokens to manage or rebalance your portfolios holdings without the need to use a different trading platform.
Hodlnaut Review: What Is Hodlnaut?
Hodlnaut is a Singapore-based company that provides a platform for crypto enthusiasts to earn interest and swap cryptocurrency tokens.
The crypto lending company has been in the industry since April 2019. The Hodlnaut team offers fintech solutions for corporate and individual investors to ensure they never leave anyone out when tailoring their products.
Hodlnaut has not been in business for long, but it already has over 5,000 active users. What’s more, despite being a relatively smaller company, they have already held over $500 million in investor assets.
Hodlnaut Loan Rates & LTV
Hodlnaut does not offer digital asset loans in fiat or crypto as other lending platforms do. They instead have a fixed-term loan package that is more like an interest account but with higher yields. Hence, this will not be the right platform for individuals that want to access crypto loans.
With the fixed term loan product, you have to deposit your digital assets with the company for at least one month and, in return, get higher interest rates.
This product is typically for large crypto holders and institutions. The minimum deposit required to earn interest is 100 BTC or the equivalent in other digital coins.
While the interest rates for this account are some of the highest you can get anywhere, it is essential to note that they are not fixed. Instead, it is a fluctuating interest rate that changes in response to the prevailing market conditions.
Since there are no crypto-backed loans for individual investors on the Hodlnaut platform, there are no LTV ratios to worry about since there are not applicable.
Hodlnaut Savings Account Terms
Given that the Holdnaut platform does not yet have a crypto-backed loan product, their savings account is the star of the show and will draw a considerable chunk of investors to the company.
With this Hodlnaut account, you can earn up to 12.73% APY (annual percentage yield), depending on the assets you deposit and other things like the term.
The company provides a clear breakdown of how their savings accounts work and all the terms. Here are the key things you should know about the supported coins, interest rates, and lock-in terms.
- Supporting Crypto Assets
The Hodlnaut platform is not as large as many others out there, and it has also not been around long. Therefore, you should not expect to get dozens or hundreds of digital assets that you can use to earn a yield on the platform.
That said, the company still supports all the major cryptocurrencies and Stablecoins. There are 6 assets on the platform: ETH, DAI, BTC, USDT, USDC, and WBTC.
But as the company continues to grow steadily, there is enough indication that they will add more assets to their portfolio. Also, they are even likely to develop a native token at some point soon.
- Interest Rates (APY)
Overall Hodlnaut guarantees to offer high interest for all the assets that they support. The company’s interest rates depend on the specific digital coin you deposit and the market forces, as they are not fixed.
That said, you can expect to make between 7.2% and 12.73% on your Holdnaut account. The Stablecoins pay the highest yields, up to 12.73% APY, while the other assets like BTC will give you at least 7.46% APY.
It is important to note that with the Hodlnaut account, interest rates also depend on the number of coins you deposit.
For example, if you invest BTC, you earn 7.46 APY for the first 2 BTC coins you add. You then earn 4.08% APY for the next 8, 2.02% for the 90 following the 8, and 1.0% for any subsequent BTC investment once you cross the 100 BTC mark.
- Lock-in Terms & Interest Payouts schedule
Holdnaut allows you to deposit crypto and start earning with no stringent conditions as you get with many other companies.
Many investors love that there are no lock-in periods with this company, and so you can withdraw your money anytime, or once you get the interest payments you desire.
However, it is essential to note that there will be some lock-in period if you choose to invest with their fixed-term loan product. With this high-interest account, you need to lock in your assets with the company for at least a month.
Hodlnaut uses a compound interest model, and you start earning interest immediately after you finish depositing with the company.
Better still, you do not have to wait for a month or even longer to get your pending interest payout as the company pays every week on Monday at around 5 PM GMT 8+ time. Therefore, besides offering some desirable interest rates, the company also ensures you get them on time.
How Does Lending & Borrowing Works On Hodlnaut?
If you want to earn interest without going through a tedious process, the Hodlnaut platform is perfect. The platform makes the entire process quick and easy, even for absolute newbies that know nothing about crypto lending.
The first step is always to signup on the platform, which should only take few minutes to complete as the company makes everything straightforward and provides a user-friendly interface.
Once your account is ready, you need to add funds before you can start using it. Hodlnaut does not accept fiat deposits, and so you will need to use a crypto wallet to add the coins to the account.
Adding crypto to a Hodlnaut account should be easy for crypto investors that already have wallets for their assets. But, even for newbies, the company provides a few easy-to-follow solutions for funding your account.
Also, you can deposit crypto to the account and withdraw them anytime as there is no lock-in period. Once this is done, you start earning interest on the assets.
The interest rate depends on the coins you deposit and market forces, but Hodlanaut lends the assets to vetted institutions to ensure higher returns.
The last step in the process is receiving the interest earned and withdrawing your funds. The interest earned is paid out weekly, and the platform provides some clear and easy-to-follow directions on how to withdraw funds from your account.
Hodlnaut Review: Other Products & Features
Most investors will go to the Hodlnaut platform to earn interest on their idle crypto assets, given that the company offers some favorable interest rates for all supported tokens.
However, Hodlnaut still has a few other exciting products and features that every investor needs to know. They include institutional lending, token swap, and a robust affiliate program.
- Institution lending
Given how risky lending to individual investors tends to be, Hodlnaut offers institutional loans for higher and more secure yields. These loans are what allows them to pay their investors the high interest rates on their assets.
The company allows the institutions to use their crypto holdings as collateral to get loans for this product. These institutional loans are often for portfolio diversification or settling other urgent business needs without selling digital assets.
The minimum loan amount for this product is $50,000, and the institutions can borrow at up to 70% LTV. There are no hidden fees for these loans, and the interest paid is one of the lowest in the market.
There is not much information on their website about this product and its terms. Still, interested parties can know all they need by contacting the company directly through their customer support.
- Token swap
Hodlnaut also has a token swap product that allows you to swap your digital assets for others that the company supports.
This product is highly convenient as it eliminates the need for a third-party platform when you want to exchange your coins with others.
Besides making it easy to rebalance your crypto portfolio, token swap makes it easy to choose the asset you want to invest to earn interest. Hence, you can easily earn favorable interest rates by swapping the tokens.
The token swap is also relatively easy as you only need to log in to your account, choose the tokens to swap, check the generated quote, and place the order to finish.
- Affiliate program
While affiliate programs might not be a core product for any crypto lending platform, they still matter, given that they provide an avenue for earning money without selling your crypto assets.
The Hodlnaut affiliate program allows you to earn 10% of the interest earned by anyone you refer to the platform.
The people you refer to the platform will earn a $20 sign-up bonus when making their first $1,000 equivalent.
The affiliate program is straightforward to join on Hodlnaut’s home page, and there is also a shareable link to ensure an even easier time sharing with your peers.
Better still, the company allows you to track how much you earn from the affiliate programs and the number of people you refer to the platform.
Hodlnaut Review: Lending & Borrowing Fees
There are some fees that you should expect to pay when using the Hodlnaut platform. These fees are applicable for both individual and institutional clients, and knowing them allows you to determine whether you will get a good deal on the platform or not.
Since the company does not offer crypto-backed lending services for individual clients, there are no fees. Additionally, the company does not charge any deposit fees, and hence you will only need to pay the withdrawal fees.
The withdrawal fees depend on the specific asset you are taking out of your account. For example, the withdrawal fee for Bitcoin is 0.0005 BTC, while for Ethereum, it is 0.0036 ETH. When taking out Stablecoins like USDC from your account, you need to pay a small withdrawal fee of $10.
Hodlnaut Review: Insurance Coverage On Deposits
Given that Hodlnaut is a Singapore-based company, it will not come with the automatic FDIC insurance coverage that you get with most US-based deposit account. However, the company still has an insurance coverage option to help keep investor funds safe.
When you open an Hodlnaut interest account, you can also buy additional insurance coverage from Nexus Mutual.
If you go for this optional coverage through Nexus Mutual’s Hodlnaut custody cover, you get maximum insurance coverage of up to $6.7 million.
It is essential to note from the onset that despite the company recommending the cover, it does not pay for it. Individual investors need to pay for the coverage at a 2.6% premium.
One more thing that investors should keep in mind is that the Nexus Mutual coverage amount fluctuates and will depend on the number of stakes you hold.
Minimum Deposits To Earn Interest & Withdrawal Limits
The Hodlnaut interest account makes earning interest on any assets you have pretty straightforward. But, besides keeping the interest rate you get in mind, it is also a good idea to understand the account limitations before jumping into the program.
- Hodlnaut Interest Account Minimum Deposits
That said, Hodlnaut does not have a minimum deposit for their interest rate account, which is meant to ensure they accommodate all investors regardless of the number of assets they have.
However, the number of assets you deposit determines the interest rate you earn, given that the company uses a tiered system. For example, depositing at least 2 BTC will give you the highest Hodlnaut interest you can get for this particular asset which is 7.46% APY.
- Hodlnaut Account Withdrawal Limits
Like with any other company that provides crypto borrowing and lending services, Hodlnaut maintains certain withdrawal limits to ensure the smooth running of the platform. These limits largely depend on the particular digital asset you are withdrawing.
When withdrawing BTC, Hodlnaut allows you to withdraw as little as 0.0005 BTC, which is lower than most other platforms. For ETH, the minimal withdrawal limit is 0.005 ETH, which is also lower than what many other companies will allow.
The maximum withdrawal limit is also among the highest you can get in the market, as the company will allow you to withdraw up to 100 BTC from your account every 24 hours.
Hodlnaut Review: Supported Countries
Although Hodlnaut is a Singapore-based company, it is designed to accommodate crypto holders from anywhere in the world. Therefore, provided you have a crypto wallet or access to the different methods of loading crypto to the account, you should be able to use the platform.
That said, the company commits to the Sanction Authority’s sanction laws. This means that they will not provide their lending and borrowing services to countries under US, EU, or UK sanctions like Iran and North Korea.
The company is available for US residents as it complies with the strict crypto regulation in the country. The US investors form a significant number of their over 5,000 users.
Safety & Security Features
Hodlnaut is registered and regulated by the Singapore financial authorities. What’s more, the company has certification from Singapore’s Finetech Association, which is an organization recognized by the country’s Monetary Authority (MAS).
All this should give you confidence that you are dealing with a genuine and safe company that will not steal your assets. It is also worth noting that Singapore recognizes crypto as digital payment tokens under the 2020 Payment Services Act.
Besides complying with Monetary Authority requirements, the company also takes several security measures to keep its platform safe. They include SSL encryption for all traffic and running on AWS.
Other security measures are using 2FA to secure the accounts and address allowlisting to ensure any transfer or withdrawal of the assets occurs at particular places.
Hodlnaut uses cold storage to keep the assets you deposit with them, making them hard to get to by hackers. Also, the company lends out the asset you deposit to vetted financial institutions to eliminate the risk of ever losing them.
Customer Support
While Hodlnaut tries to make their platform as straightforward to use as possible, users can still have a few issues that need intervention by the company.
Whether it is a query with interest paid or difficulties with a withdrawal, the company provides easily accessible and prompt customer support.
Customer support is available across multiple platforms to ensure you can reach the company using your most convenient channel.
They have 24/7 live chat support, which most users seem to prefer, given that many of the issues are resolved in just a few minutes. There is also email support, where you can write to them and get a response in just a few hours.
Other support channels that you can use include their social media channels. You can connect to the company and talk to a customer support representative on Twitter, Instagram, Telegram, and Linkedin.
Hodlnaut also has some helpful material on their website that includes FAQs, guides, and tips that can be very useful for investors. In many cases, the answers for most of the queries you might have are already available in one of these resources.
Hodlnaut Interest Account Sign Up and KYC
Hodlnaut makes account sign-up a quick and straightforward process that should not take more than 5 minutes. You need to add only a few basic details, and you will be ready to start earning interest on your deposits.
However, as you create an account on the Holnaut platform, it is vital to remember that it has a mandatory KYC verification. Therefore, ensure you have your ID ready before starting the registration and verification process to avoid unnecessary time wastage.
Once you have everything you need, here are the few simple steps you need to follow.
- Go to https://www.hodlnaut.com/
- Hit the “Sign Up” button on the top right corner
- Add your names, email and create a password
- Enter the referral code if you have one and tick to agree to the terms/privacy policy
- Click the “Sign Up” button below and then check your email for verification.
- Do the KYC verification to finish the account set up
- Deposit the supported assets to start earning yield
Conclusion: Final Thoughts
There is no doubt that Hodlnaut is a highly reliable company in the crypto lending and borrowing industry. From this Hodlnaut review, it is clear the company has a lot to offer, and users can expect to get some of the most favorable terms with no lock-in periods.
The company seems more ideal for those looking to deposit their idle asset to earn interest yields. Hodlnaut offers yields of up to 12.73%, and you can be sure your asset will be safe since they lend them out to established financial institutions only.
Finally, from this Hodlnaut review, it is also evident the platform has an excellent customer support and advanced security protocols. These are all additional reasons for individual and institutional investors should give it a try.
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