Hodlnaut Review: The Highest APYs On Your Crypto! (Up to 10.5%)

I recently came across a new centralised crypto lending and savings platform which allows individual crypto investors to earn high interest on their crypto.

This platform is similar to other lending platforms such as Nexo, Celsius, Gemini Earn and more which basically allows users to earn interest on their idle crypto assets by lending them out to corporate borrowers on an over collateralized basis.

For users who do not want to dabble into DeFi and rather have a more passive way to earn extra interest on your crypto, this post is definitely worth reading.

So what makes Hodlnaut stand out from the rest of the lending platforms? Read on to find out why this platform caught my eye and why I’m using it to park my crypto.

Introduction

Hodlnaut was founded by 2 local entrepreneurs and it is a Singapore based start-up company. Their services are catching more demand from crypto users due to the complexity of DeFi (you can read up more about DeFi in my post here) and offering easy access to higher yields on crypto assets such as Bitcoin, Ethereum and stablecoins such as USDT, USDC and DAI.

Actual Web Interface

Hodlnaut currently operates on the web platform and a mobile app is currently under beta testing. Aside from offering some of the highest rates on the most popular crypto assets, Hodlnaut is also currently in the process of getting MAS licensing, so this may be an extremely great news for users who are more risk-averse and avoided Nexo and Celsius simply because they are not MAS-regulated entities.

In short, Hodlnaut as a local-based company that may be more receptive to Singaporeans due to their local branding and trust in local based companies. They currently have more than 5000 users already using the platform and rapidly expanding as their interest rates are extremely competitive right now.

Highest APY on the Most Popular Crypto Assets

APY = Annual Percentage Yield, In other words, your compounded annualised interest rates

As you can see here, the APYs they are offering for Bitcoin and Ethereum is a whopping 6.2% and 6.7% respectively. Meanwhile, you are getting 10.5% on popular stablecoins such as DAI, USDC and USDT as shown above.

These are crazy competitive numbers! But of course as more users sign up, do expect the interest to head downwards as demand catches up.

But getting such great interest rates in an environment when traditional finance such as bank savings accounts and Singlife are yielding miserable 0.05%-1% yield, might look like an extremely great deal right now.

Crushing the traditional stock market

Not only that, 6.2%-10.5% APY is impressive if you are comparing to the stock market as well.

To even hit 6.2% on the stock market on an annualised basis is already no easy feat since the average stock market index returns over the long run is between 7%-8% APY.

This is not even accounting for your potential gains from Bitcoin and Ethereum in the long run, which has historically been the best performing asset class over the past 10 years!

For comparison’s sake, here’s how Hodlnaut stack up against Nexo and Celsius:

Hodlnaut’s interest rates are extremely competitive right now.

As a HODL-er myself who won’t be selling his crypto any time soon, I think Hodlnaut is the perfect solution for users who might find DeFi too complex and risky and would rather just place their crypto in a “safer” environment than to manage their own DeFi wallet and risk losing the funds due to various reasons.

For diversifying purposes, I am also putting some of my crypto assets such as Bitcoin and Ethereum in Hodlnaut as I do not want to completely put all my crypto into DeFi as _DeFi risk still exists _and I don’t want to put all my eggs in one basket and risk losing all my funds in DeFi.

Benefits of Hodlnaut

1. No minimum transfer or custodian cost

2. No lock up period at all

3. No fees at all (except for withdrawal fees)

4. Ongoing MAS licensing application (Regulated entities are generally less risky)

5. Secured by AWS (Amazon Web Services) and industry standard algorithm for password hashing/encrypting

6. Fireblocks integration for $250 millon AUM (basically a next generation technology to secure users private keys with multi-layered security)

7. Loan-To-Value (LTV) Ratio is usually 70% or lower (Minimise default risk)

8. Fast Sign Up process and easy to use UI

Hodlnaut Areas of Improvement

The only real con of Hodlnaut will be their crypto withdrawal fees, which may be hefty for some users who deposit only small amounts of crypto or wish to transfer them out frequently.

Currently, they have withdrawal fees of 18 USD on their stablecoins, 0.0004 BTC on Bitcoin and 0.005 ETH on Ethereum. They are most probably miner fees that are out of control of Hodlnaut but it would be great if they implement loyalty tiers and provide incentives like free withdrawals for users, which is something that is available on Nexo and Celsius.

However, if you are depositing large amounts of crypto or you don’t plan on moving your crypto around frequently, I don’t see the withdrawal fees as a huge issue.

Also do note, you cannot transfer fiat such as SGD or USD into Hodlnaut and will have to purchase the crypto asset before you can deposit them into Hodlnaut. (More on this below)

Limited Options (5 Crypto Assets Right Now)

Another potential bummer would be if you hold other coins such as Polkadot, Cardano, Doge or any other crypto, Hodlnaut currently only offers interest for 5 crypto assets which consist of Bitcoin, Ethereum, USDT, USDC and DAI.

In this case, Nexo and Celsius might be the better alternatives if you are not looking to earn interest on the 5 coins but other crypto instead.

But if you are looking to earn interest on the 5 crypto mentioned above in an easy to access and safe manner, Hodlnaut may be your best bet right now.

How to transfer crypto into Hodlnaut

Below, I will highlight the steps to take to safely deposit your precious crypto assets into Hodlnaut

1. Create a crypto exchange account (To buy/Sell) + Hodlnaut (Savings account)

2. Buy your crypto on an exchange (I use Gemini Active Trader as each buy/sell is 0.35% per transaction and Gemini has 10 free crypto-crypto transfers/month)

3. Transfer the crypto through the blockchain (Copy&Paste the address for transfers between the exchange and _Hodlnaut)

4. Wait for your crypto to be deposited and congrats on achieving daily compound interest!

Gemini Exchange

Exchange wise, I highly recommend Gemini and its my personal exchange of choice since they have 10 free crypto-crypto transfers every month and also extremely low trading fees (0.35%) for Gemini Active Trader for purchasing BTC or ETH using SGD.

You can read up on Gemini in greater details in a post I wrote here.

Otherwise, you can use Binance.com and use USD to buy BTC or ETH and their fees are just 0.1%! But you have to take note of the withdrawal fee for Binance.

Once you have purchased the required crypto assets from the exchange of your choice, head over to the exchange’s withdrawal function and withdraw the crypto asset into your Hodlnaut address for the corresponding crypto asset.

And poof! Your crypto should appear in Hodlnaut in no time. Congrats! Now you are earning interest which are paid out every week!

Withdrawing from Hodlnaut

The withdrawal process is simple. To withdraw from Hodlnaut, you basically reverse engineer the way you deposited your crypto in the first place.

1. Head over to withdraw, and select the crypto you wish to withdraw.

2. Once done you just copy and paste your address from the exchange you are withdrawing into. Double check the address and confirm the withdrawal.

3. Your crypto should be in your new address in no time.

Do note that withdrawal are processed daily at 5PM Singapore Time.

Conclusion

Hodlnaut is absolutely hitting the home run with industry leading interest rates on 5 of the most popular crypto assets right now.

In terms of interest rates, Hodlnaut absolutely crushes it with their market beating APYs and with MAS licensing on the way, it won’t be surprising before more realises the potential of this platform and a gateway for mainstream investors to hop onto the crypto train.

Being able to earn passive income on your idle assets is really a dream come true, as not only are you gaining from capital appreciation of Bitcoin or Ethereum, you are getting more Bitcoin and Ethereum on a weekly basis and if you compound that over time, that return on capital is truly insane.

Aside from the withdrawal fees being a potential bummer for users who withdraw frequently and the lack of a mobile app right now, I still think Hodlnaut might be the platform of choice for most retail crypto investors.

With plans to add more crypto tokens and one of the highest stablecoins yield right now, I can’t wait to see what Hodlnaut has to offer and build a competitive advantage over the long term.

Still in doubt? You can head over to their FAQ and learn more about them here.

Some Ways to Deposit Crypto

Here’s how I would go about looking at depositing crypto tokens right now:

For BTC, ETH, DAI: Bank — Buy via Gemini – Withdraw and Deposit into Hodlnaut (interest 6.2%-10.5% APY)

For USDT, USDC: Bank — Buy via Binance.com – Withdraw and Deposit into Hodlnaut (interest 10.5% APY)

For Altcoins such as DOT, BNB, LINK, MATIC: Bank — Buy via Binance.com – Withdraw and Deposit into Nexo/Celsius (APYs varies according to the asset)

Hodlnaut Referral Bonus!

Interested to sign up with Hodlnaut and earn high interest on your idle crypto assets? Use this exclusive link to receive a US$20 signup bonus after making an initial deposit equivalent of US$1000 on any of the 5 supported assets!

Join My Tele Channel Here For Blog Updates And More!

I use StocksCafe to keep track of all my investments + research on stocks. You can also view my portfolio as well as many others so you can compare your own performance with other investors. If you are interested in signing up, you can use my referral link to sign up and access premium features for 1 extra month for new users. (3 months)

The Power of Low Fees

One huge advantage I have as an investor is paying very minute fees which can really eat into returns in the long run because I am using Firstrade to buy US Stocks which has absolutely $0 fees and extremely fast wire transfers for deposits and lightning fast trade executions.

Ever since I switch to Firstrade last year as my main investment vehicle, I saved up on a ton of fees and hence able to achieve way better returns than before. I saved up more than 5 times the fee paid in 2018, 2019 and 2020 this year due to the switch and I am really happy thus far.

Of my entire investments in 2020, fees only take up 0.1% of my entire portfolio! (2018+2019+2020 combined across all brokers and Robo)

If you need some inspiration for companies to research, you can check out my post on 5 stocks to buy if the market crashes here.

For those who are already into Crypto

Want to learn how you can earn high yielding interest rates on your idle crypto assets in a secure, safe and easy manner? You can read up more on my post here to learn more about Celsius and Nexo which give you interest on your crypto assets!

Or do your due diligence on Bitcoin in my post here and also my crypto exchange of choice Gemini here if you are looking to buy your first crypto!

Or want to learn more about DeFi in a simple to understand manner? Click here to learn more!

Referral Links (Click and Sign Up)

Gemini Exchange: Deposits and buy US$100 or more crypto on Gemini and you will earn US$10 in BTC.

Coinhako Exchange: You can create an account by clicking the link and then enter promo code: COINGECKO when doing a buy/sell and enjoy 20% trading fees discount!

Binance Exchange: Create a Binance.com account here and trade the widest range of crypto pairings!

Celsius Network: Earn US$40 in BTC for free with your first transfer of US$400 or more in any crypto asset and wait for 1 month!

Nexo: No referral events at the moment 😦 Just sign up and enjoy this great product!

Disclaimer:

The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment.

Do note that this is not financial advice. If you are in doubt as to the action you should take, please consult your stock broker or financial advisor.