When it comes to investing in cryptocurrency you can always be sure you're in for some serious swings. Cryptocurrency is the most volatile investment you could participate in, it's difficult to call it an investment actually.
The risk associated with trading cryptocurrency is very high and as such there may be plenty of investors who are sitting in the red and their coins are just bleeding money until the next surge in price.
In situations like this, and for those who just like to hold, Hodlnaut has a service for you that will net you some extra income while you wait for those prices to rise.
Hodlnaut offers a way to buy cryptocurrency and earn interest on those holdings at the same time. You can think of this similarly to earning dividends on a stock you’ve been holding for a while.
The value of that stock still fluctuates but you still earn income while holding the value of that stock. In Short, Hodlnaut allows you to earn dividends on your crypto holdings.
About Hodlnaut
Hodlnaut is a cryptocurrency lending platform that was founded in 2019 out of Singapore.
The platform provides financial services for individual investors, where they earn interest on their cryptocurrencies by lending them to corporate borrowers who are not capable of accessing crypto themselves.
Hodlnaut holds over 250 million in assets and has over 5000 active users.
Cleverly named and clearly savvy to internet culture and slang, the name Hodlnaut is a combination of “HODL” and “astronaut”.
HODLing Is an on-purpose spelling mistake of “hold” that was first used in the altcoin market, and later went on to imply “Hold On for Dear Life”.
It's the internet's way of reinforcing the idea of not selling in a down market. The idea is to hold on to the very end until the price hits zero, or until the price rises back up enough for you to earn a profit.
Astronaut Is most likely a reference to “To The Moon” which is a phrase often repeatedly posted on altcoin community sites whenever the price starts to take off.
Hodlnaut Services
Hodlnaut’s primary service is loaning out margin to corporate cryptocurrency traders.
This cryptocurrency comes from people like you and me who own crypto and deposit it into Hodlnaut, earning us an annual interest rate while the value of cryptocurrency can continue to grow.
Currently, Hodlnaut accepts deposits and pays interest on Bitcoin, Ethereum, Dai, USD Coin, and Tether.
The interest rates earned on these cryptocurrencies can vary from 6.2% to 10.5% which is an incredibly high interest payout.
Here are the current compounded interest rates for each crypto. The interest earned on your deposit is also calculated and paid out on a weekly basis on Monday @ 5 PM (GMT+8) to the wallet of your choosing.
| Cryptocurrency | Compounded Annual Interest Rate |
|---|---|
| Bitcoin | 6.2% |
| Ethereum | 6.7% |
| USD Coin | 10.5% |
| USDT (Tether) | 10.5% |
| Dai | 10.5% |
How It Works
Hodlnaut Is fairly simple, easy to comprehend, and most importantly, profitable. The first step after signing up for an account is to deposit your Bitcoin or supported altcoin into your account. Remember, there are no logins or deposit limits.
Interest on your assets is earned on a weekly basis and is deposited directly into the wallet of your choosing.
It is important to note that the interest rate is derived from the market conditions, such as supply and demand; however, Hodlnaut does try to keep the interest rates at a fairly fixed rate.
Whenever you feel you have run your course with Hodlnaut and are ready to pull out your money, there is nothing stopping you from doing so.
The transparency and ease of use of Hodlnaut’s services are a nice bonus and feel like it was made to be used by the average consumer.
Why Use Hodlnaut?
There are plenty of lending platforms online all of which have unique reasons to use their platform.
It can be difficult, especially for a new company to differentiate itself from the competition, however, we think Hodlnaut does a great job of setting itself apart from the rest.
Let's go over some of the key features of what set hodlnaut apart from the rest of the competition
Control Your Own Crypto
Hodlnaut allows you to deposit and withdraw at any time. There are no lock-in periods and no minimum amount of deposits or activity fees on the account.
If you decide you want to liquidate your account and sell everything you own you can do that at any time assuming you haven't taken a fixed term on your deposit and pay a small withdrawal fee based on the coin.
For those that are mobile users primarily, it's helpful to know that Hodlnaut's UI is very simple to navigate and pleasant to look at.
While most crypto exchanges or services are getting better with more funding and professional development, it's no surprise that they can sometimes look a little rough around the edges.
Thankfully, you won't have that problem with Hodlnaut. It's slick, it performs well, and for beginner cryptocurrency investors, you don't have to feel overwhelmed. Not to mention, it's very simple to get fiat/crypto onto and out of Hodl.
Low Fees
Hodlnaut Has next 0 fees for most of their services with the exception of withdrawing currency. The withdrawal fee is based on the type of currency being withdrawn, here's a quick breakdown of what that looks like.
| Coin | Withdrawal Fee |
|---|---|
| Bitcoin | 0.005 BTC |
| Ethereum | 0.005 ETH |
| Tether | 3 USD T |
| USD Coin | 3 USDC |
| Dai | 3 Dai |
Fixed Term Deposit
Hodlnaut also offers a VIP fixed-term interest rate on significantly sized deposits. You can choose to lock in your cryptocurrency for 1 month or longer and earn a better interest rate on 25 Bitcoins or equivalent value.
Hodlnaut did not state their VIP interest rate but rather specified that you need to contact them for a custom quote based on your deposit.
Token Swap
If you find that the holdings you currently have are not to your liking anymore, you can instantly trade between any of the supported assets right on Hodlnaut.
You are able to manage your portfolio and rebalance your asset Holdings without having to leave the platform.
Currently, trading is limited to only Bitcoin, Ethereum, Tether, USD coin, and Dai, however, more cryptocurrencies are in the works.
Regulatory License
Hodlnaut Is based in Singapore and therefore under Singapore law. In Singapore, there was a payment services act introduced on the 28th of January 2020.
This act covers crypto-currencies and classifies them as “digital payment tokens''. Currently, Hodlnaut is in a 6 month grace period while applying for that license.
Hodlnaut App
Hodlnaut is currently in the process of building its app and will become available in the third quarter of 2021.
In the meantime, Hodlnaut is accessible through any internet browser and the platform is optimized for mobile usage.
Security
When it comes to the platform security risk itself, Hodlnaut places all cryptocurrencies that are held in their custody into Cold Storage. Hodlnaut use absolutely no hot wallets at all.
What this means for the average user is that there is a near-zero likelihood that the cryptocurrency you deposited into Hodlnaut will get stolen.
If storing your cryptocurrency in Cold Storage isn't enough there is a further way to mitigate the risk of losing your cryptocurrency.
Hodlnaut offers additional insurance with Nexus Mutual, which you will have to pay for yourself if that's what you choose. The coverage maximum is 6.7 million and the premium is 2.6%.
Additionally, Hodlnaut has a handy whitelisting feature that ensures withdrawals only occur to pre-approved addresses.
Recommendation
If you are holding one of the currently accepted coins with Hodlnaut, And you're not planning on moving or selling the coin anytime soon, then Hodlnaut is the perfect choice for you to earn a little bit of extra money while you hold.
With a 10.5% interest rate on certain cryptocurrencies, Hodlnaut boasts one of the highest returns for any online interest lender.
Incredible interest returns that are paid out on a weekly basis can help you diversify your portfolio the longer you earn interest.
Weekly payouts coupled with next to 0 fees unless withdrawing put Hodlnaut in a tier above the competition.
I would highly recommend using Hodlnaut for the average cryptocurrency holder to earn some extra percentage points while they wait.
