Hodlnaut and BlockFi are two of the popular names when it comes to crypto interest accounts. Both of the platforms offer lucrative interest rates, supports a wide range of cryptocurrencies, and make it super easy to earn interest on your crypto. But the question is, which one is best among these two?
Well, this is what we will be finding out in this Hodlnaut vs BlockFi comparison. This article will compare both the services and help you choose the right platform that meets your needs.
So let’s get into the topic right away:
Hodlnaut is one of the popular crypto loan platforms out there. The company was founded back in 2019, and it is based out of Singapore. Also, Hodlnaut is a part of the Antler portfolio company.
Being a crypto lending platform, it allows the investors to hold their crypto assets on their platform and earn interest in return. You can lend your cryptocurrencies and stablecoins through Hodlnaut.
Also, it offers you about 6 lendable crypto coins such as Bitcoin, Ethereum, Wrapped Bitcoin, and stablecoins like DAI, USD Coin, and Tether.
Hodlnaut is available in almost all the countries globally. On the platform, you can begin earning interest immediately by simply holding your assets to the platform. The accrued interest gets paid out weekly every Monday. Plus, it comes with a mobile app for iOS and Android users.
BlockFi is also one of the best crypto lending platforms out there. BlockFi was founded back in 2017, and it has now turned into a full crypto bank.
Using BlockFi, you can earn interest on your crypto. The best part of BlockFi is that it works as a complete crypto bank.
This means you can use BlockFi for taking crypto loans and buying or selling crypto. Plus, you will get to earn about 11% APY per year on your cryptocurrency holdings. Also, there are no hidden fees on BlockFi.
On BlockFi, you will find Bitcoin, Ethereum, Chainlink, Uniswap, Basic Attention, and many other supported assets. Also, based on your crypto assets, you will earn different interest rates.
BlockFi vs Hodlnaut: Supporting Crypto Assets & LTV
When it comes to supported cryptocurrencies and LTV, BlockFi is the clear winner. As it offers more supported assets compared to Hodlnaut.
Talking about Hodlnaut, it only supports 8 assets as of now. But it allows you to earn interest on any amount of crypto. There are minimum deposits that you have to make.
It supports some of the popular assets like BTC, ETH, USDT, and DAI, along with USDC, WBTC, UST, and LUNA.
Also, depending on your crypto asset, you will earn different interest rates, which is a common thing across all the crypto interest accounts.
As far as the LTV is considered, Hodlnaut users can enjoy flexible LTV of 25-70%. It offers crypto loans starting from $50,000, and you can use a credit line using your crypto assets as collateral.
Now coming to the BlockFi, which supports more than 10 cryptocurrencies. You can deposit assets like Bitcoin, Ether, Doge, Solana, Polygon, Cardano, UNI, Link, Bitcoin Cash, Litecoin, and many others.
Along with that, it supports stablecoins like USD Coin, Tether, Binance USD, and Gemini Dollar. Depending on your crypto asset, you will earn a different interest rate.
Talking about BlockFi loan to value ratio, BlockFi allows you to borrow up to 50% of the collateral value of your assets. However, Hodlnaut offers you a flexible loan to value of up to 70%.
BlockFi vs Hodlnaut: Interest Rate Accounts, Lock-in Terms & Payouts
With both the Hodlnaut interest account and BlockFi interest account, you will have different interest rates on different crypto coins.
When it comes to crypto interest rates, BlockFi seems to be a better option. First of all, it offers you more coins to deposit, which doesn’t limit you to how many coins you can hold.
However, for some coins, Holdnaut happens to offer better interest rates than BlockFi. For instance, if you choose to deposit up to 1 Bitcoin, you will earn 5.33 APY on Hodlnaut, while BlockFi pays 4% APR for 0 – 0.10 BTC.
If you deposit 0.10 – 0.35 BTC, you will earn only 1% APY. But on Hodlnaut, for the next 0.5 BTC, you can earn about 5.02% APY.
But this is not the case with all the cryptocurrencies out there. For some assets, BlockFi seems to be a better option.
Also, both platforms ask you to hold your cryptocurrencies for a limited period of time. During this period, you won’t be able to withdraw your funds. Hodlnaut asks you to lock your funds onto their platform for at least a month or more. Also, depending on how long you wish to lock your funds, you will earn different interests.
On the other hand, BlockFi has a maximum lock-in period of 12 months. It also has flexible lock-in periods.
Talking about the payouts, BlockFi pays out the interest at the beginning of every month. The crypto interest earned by you compounds, and it increases the APY. On the other hand, Hodlnaut the interest gets paid out every week on Monday to your wallet. Also, your compound interest earn crypto interest.
BlockFi vs Hodlnaut: Products & Features Comparison
BlockFi is a much better option in front of the Hodlnaut comparison. It offers you features and services that meet all your crypto banking requirements.
When comes to BlockFi, offers you five main products: BlockFi crypto wallet, BlockFi trading account, crypto-backed loans, BlockFi interest accounts, and personalized yield.
Using BlockFi crypto wallet, you can store your cryptocurrencies safely with two-factor authentication and other security features. Plus, it is free to use and allows you to instantly trade, exchange crypto coins and pay users with crypto.
Using a BlockFi trading account, you will be able to buy, sell and trade a variety of cryptocurrencies at competitive prices. Plus, you will earn interest in the crypto the moment your trade is placed.
BlockFi’s trading portal lets you trade more than 15 of the most popular cryptos, and you can buy crypto instantly from your bank account via ACH.
Crypto-backed loans allow you to borrow money at rates as low as 4.5% APR. It lets you borrow up to 50% of the value of your crypto. You can also use your crypto-backed loan to buy a variety of different assets and so on.
The BlockFi interest account, of course, lets you earn 11% APY on your crypto holdings, and it supports a wide range of currencies. BlockFi has a tiered interest rate structure.
Finally, with BlockFi’s personalized yield, you will enjoy additional and advanced crypto lending features. For instance, you can lend your crypto and earn custom interest rates, and you have the power to negotiate a personalized loan to value and APR on crypto-backed loans, enjoy advanced trading with the individual relationship manager, and many more.
When it comes to Hodlnaut, it doesn’t offer as many features BlockFi does. Instead, it offers you three products: Hodlnaut interest account, Token swap, and Fixed-term deposit.
With the Hodlnaut crypto interest account, you will get to earn interest on crypto with up to 13.86% APY. It has flexible lock-in periods with no minimum deposit. Plus, it offers you one free withdrawal each month. But in terms of supported tokens, it losses the battle against BlockFi.
With Token swap, you can swap between any of the supported assets seamlessly at zero fees. So you can easily balance your portfolio. Plus, you get to earn interest on your crypto on the same day as you execute your swap order.
The fixed-term deposit is an ideal option for investors looking to earn industry lending interest rates. In this case, you are required to choose a deposit term from 28 to 180 days, and you will get your interest upon maturity. It is pretty much like a bank’s fixed deposits but for crypto.
Overall, in terms of features, BlockFi is the clear winner. It offers you more products and services than Holdnaut. Plus, it makes it super easy for you to manage your crypto.
BlockFi vs Hodlnaut: Fees Comparison
Although, both BlockFi and Hodlnaut mentioned that there are no hidden charges. But they do charge different kinds of fees for different services. So it is very important for you to understand what fees these platforms are charging.
However, between these two platforms, the BlockFi account has a simpler fee structure. There are no hidden fees, and they do mention the fees they are charging beforehand. So you can get a clear idea about the transaction fees and other charges.
Also, there are no deposit fees. But BlockFi does have a withdrawal fee. You can enjoy up to one free crypto withdrawal per calendar month only if you meet the requirements. Any additional withdrawal requests in the same month will be applicable to a transaction fee.
Depending on what currency you are withdrawing from, you will be required to pay a different withdrawal fee. For instance, if you withdraw BTC, you have to pay withdrawal fees of 0.00075 BTC. For LTC, the withdrawal fees would be 0.001 LTC.
Although, when it comes to depositing funds on BlockFi is free. But you might still have to pay some fees depending on your deposit type. For instance, if you choose to deposit funds via wire transfer, then it will charge you some fee.
But luckily, BlockFi supports a wide range of payment options. So you can compare the deposit options and pay the lowest deposit fee.
With Hodlnaut, you will also get one free withdrawal per calendar month. But it doesn’t have any requirements that you need to meet to get the free withdrawal.
However, any additional withdrawal requests in a month will be charged with withdrawal fees. For instance, Bitcoin occurs a withdrawal fee of 0.0004 BTC, DAI occurs a withdrawal fee of 10 DAI, and more.
However, there are no charges for depositing your funds on the platform. But again, depending on your depositing method, you will be asked to pay some additional fees. Also, there are no fees for using Holdnaut’s token swap fees.
Hodlnaut vs BlockFi: Insurance Coverage
When it comes to a crypto savings account, insurance coverage is something that you must look for. After all, you don’t want your funds to get stolen and face any losses.
Unlike BlockFi, Hodlnaut offers you some sort of protection. As it has partnered up with Nexus Mutual. However, it requires you to purchase insurance for the funds you have placed with Hodlnaut.
Using this optional insurance, you can safeguard your funds by paying an affordable premium of 2.6% p.a. It allows you to make a claim in two situations.
First, if your Hodlnaut account gets hacked and you lose more than 10% of your funds. Or secondly, withdrawals from Hodlnaut are halted for more than 90 days.
While buying an additional insurance plan seems unethical. But if you look at most crypto interest earning platforms, none of them really offers you any insurance coverage. So it’s good to have some sort of insurance coverage, even if it comes at a cost.
On the other hand, if you talk about the BlockFi interest account, it doesn’t provide you any insurance coverage. It has not been registered under the Securities Act of 1993 and may not be offered or sold in the United States or US person.
However, it still manages to keep your funds safe and secure, and the insurance coverage shouldn’t really bother you. BlockFi keeps a material amount of digital assets available for withdrawal with third-party financial institution such as Gemini and Fidelity. And platforms like Gemini use several high-standard technologies to keep the funds safe and secure.
So the clear winner, in this case, would be Hodlnaut. Of course, it would have been better if they offered free insurance coverage. But it’s better than having nothing.
BlockFi vs Hodlnaut: Minimum Deposits for earning interest & Withdrawal Limits
When it comes to depositing or withdrawing funds, Hodlnaut doesn’t have any limit on the deposit. You can deposit as small an amount of funds as you wish to. However, for the withdrawal limit, Hodlnaut only allows you to withdraw up to 100 BTC per day.
On the other hand, BlockFi, too, doesn’t have any limit on how much you can deposit. You can deposit USD or fiat without any limitations.
However, for withdrawal, it depends on asset classes you are trying to take out of BlockFi. On the platform, you withdraw a minimum of 0.003 BTC or 0.056 ETH. If you have anything less than this, the withdrawal processing time can take up to a month or more.
Account Sign-Up Process & KYC
The account opening process for both platforms is extremely easy. Individual investors can sign up on both platforms and start earning vested interest right away.
However, to help you with a get started quickly here is the complete account opening procedure:
Signing Up on Hodlnaut
- Start by going to Hodlnaut.com and clicking on the Sign-Up button.
- Next, create an account by following all the onscreen steps.
- Then you will be required to complete KYC by submitting your personal ID.
- Next, add funds to your Hodlnaut, and you are good to go.
Signing Up on BlockFi
- Go to BlockFi.com and click on Get Started button.
- Next, create an account using your personal details.
- After that, verify your address and complete the KYC verification by submitting your personal documents.
- Finally, add funds to your account, and you are all set to earn lucrative BlockFi interest rates.
On one side, BlockFi is a US-registered company. But it offers its services globally. So you can use their services from different countries. However, in the USA, some states might not get to enjoy all the features due to rules and regulations. Also, BlockFi might not work in a few regions.
But apart from that, most countries shouldn’t really have any issues while accessing or using BlockFi. You can open a BlockFi interest account from anywhere in the world. But if you are from countries sanctioned by the USA or under their watchlist, then you won’t be able to use BlockFi.
On the other hand, Hodlnaut is also available globally. They are a Singapore-based company and don’t have any limitations on countries that can use their services. And anyone can get personal or corporate loans from the platform.
BlockFi Pros & Cons
- Trade cryptocurrencies instantly with no commission fees.
- Offers you highly competitive interest in your crypto holdings.
- You can get a crypto-backed loan or crypto rewards credit card.
- US-based and regulated.
- There are no minimum balance requirements and no balance caps.
- No FDIC insurance coverage for deposits.
- Withdrawal fees apply based on the cryptocurrency type.
- Interest account withdrawal are limited monthly by cryptocurrency type.
Hodlnaut Pros & Cons
- There is no minimum deposit or lock-in period.
- Interest is paid every week, allowing crypto profits to compound over time
- Optional insurance policy to safeguard your funds.
- You cannot buy, sell or trade cryptocurrencies.
- Interest rates are not fixed, and they can be changed every month.
- It has a limited number of supported cryptocurrencies.
Is BlockFi Safe?
BlockFi account is definitely safe to use. It uses some high-standard security features and protocols. So you can be assured that your funds are in safe hands. They do keep most of their assets in cold storage. So you will not end up losing your funds. For more security, you can also enable two factor authentication.
Is Hodlnaut Safe?
Assets held in the Hodlnaut account stay safe and secured. It offers you FDIC protection, it runs on the AWS, and all traffic is SSL encrypted. Additionally, you can buy an optional insurance coverage plan to safeguard your funds. Plus, the platform doesn’t use hot wallets at all, and all the funds are stored in cold storage.
Both Hodlnaut and BlockFi are two reliable options to earn interest on your digital currencies. However, in terms of features and interest rates, BlockFi seems to be a clear winner.
Both of the platforms are also highly secured and pretty straightforward to use. Both of them let you earn compound interest and offer you a loan against your crypto portfolio.
So go ahead and check them out, compare their interest fees and see which one works for you.
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