Hodlnaut Review: Pros, Cons and How it Compares

If you are involved or interested in the world of cryptocurrency, then you have probably heard of Hodlnaut. Here is our complete Hodlnaut review.

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Our take

3.0
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Did you know that, according to DeCenter, 30% of people between 18 and 34 would prefer to invest $1,000 of their money into Bitcoin instead of into government bonds and stocks? Additionally, 9.19% of millennials most frequently choose cryptocurrency as an investment.

If you’re one of the people who has decided to invest in cryptocurrency, then you probably want to review all the different choices you have when it comes to cryptocurrency accounts.

There are many cryptocurrency savings accounts out there, but which one is for you? Which ones are safe? Are there any that make it possible for you to earn interest on your cryptocurrency investments?

When you don’t have the answers to these questions, it can be difficult to choose the best crypto wallet or savings account for you. That’s why we’ve put together this Hodlnaut review.

In it, you’ll learn everything you need to about this interest account. Additionally, we’ll go through some of the most frequently asked questions related to Hodlnaut and review all the pros and cons.

Finally, you can decide if Hodlnaut is right for you. Read on to learn more.

Let’s Review: What is Hodlnaut?

Hodlnaut is a cryptocurrency account that makes it possible for you to earn interest on your cryptocurrency investments. The reason why Hodlnaut has its name is that, in the crypto world, “hodl” is a misspelled way of referring to “hold.”

Cryptocurrency enthusiasts have long used the term “hodl” when referring to different long-term strategies they use for holding their cryptocurrency assets.

At first, the most common strategy was to hold onto cryptocurrency assets for a long time, trading or selling them when the value went up.

However, now cryptocurrency investors are looking for new ways to get more money out of their cryptocurrency holdings.

This is the solution that Hodlnaut provides. Once you’ve set up an account with them and deposited your cryptocurrency into it, you can start earning interest. This is with favorable rates, which makes this choice even more attractive.

The interest rates are as follows: 6% for BTC (6.2% annually, effectively) deposits and 8% for USTC and USDC deposits (8.3%, effectively).

Additionally, there isn’t a lock-in period or minimum deposit when you use Hodlnaut.

In addition to an interest account, you can get corporate lending services from Hodlnaut. You can borrow USDT, USDC, and BTC at some of the lowest rates in the industry.

These loans usually start at $50,000. They have a loan-to-value that’s flexible (between 25% and 100%), and you can get terms that are open or fixed in 3+ month terms.

Who Is Hodlnaut?

Juntao Zhu and their business partner Simon Lee founded Hodlnaut in 2019. Lee has a background in mechanical engineering, while Zhu has one in the finance industry (specifically, with Credit Suisse). The team is currently made of 8 members.

Before they started this company, they worked together at Antler. Then, they used 100K in funding to start Hodlnaut, after which they started the company in Singapore.

In Singapore, the Payment Services Act was passed in January 2020, classifying cryptocurrencies with the term “digital payment tokens.” For this reason, the company can operate under Singapore Law.

They are currently running with a grace period that lasts six months, and have applied for a license with Singapore’s new regime.

It’s no surprise that this company is based in Singapore, given that many crypto companies are based there. This is because of the coherent and clear guidelines Singapore provides these companies.

Signing up for Hodlnaut

If you’re considering using Hodlnaut, it helps to know how to use it. In this section of this Hodlnaut review, we’ll go over how you set up an account and start earning interest on your cryptocurrency investments. First, you need to go through a verification process.

To do this, you need to sign up, providing your email address and password.

Then, you’ll have to go through 2-factor authentication (also known as 2FA). This is so that no one can break into your account. You’ll also be asked to provide a document that verifies your identity.

In this last part of the process, Hodlnaut uses the services of the KYC provider Onfido. Because of this, the process is simple and streamlined.

In addition to providing the identity document, you need to upload a document that proves your address (for example, a recent utility bill) and a selfie.

Once you’ve done all this, you’ll receive an email that confirms your account is completely verified.

Then you’re ready to go! (Keep in mind that if you have any issues while signing up, you can always reach out to customer support.)

Earning Interest on Hodlnaut

Once you’ve set up your Hodlnaut account, it’s time to start earning some interest! To get started, take a look at your Hodlnaut dashboard. In it, you’ll be able to see all the different assets available to earn interest on their platform, as well as the respective interest rates.

After taking a look at this information, you should have a pretty good idea of which cryptocurrency type you want to start earning interest on.

To do this, click on the “Transfer” tab, which you can find at the top of the account page.

Then, you can select the asset type. Then, you’ll find the deposit address for that asset. You have to copy this deposit address.

Then, go to your Bitcoin or Ethereum wallet so you can initiate the transfer. If you use cryptocurrency exchanges to store your cryptocurrency (for example, Coinbase), then you can request a withdrawal.

This would be through the same deposit address you found on the Hodlnaut page. Within a few hours, you should be able to see the fund in your Hodlnaut account.

Do keep this in mind: these requests require that several block confirmations be done before the credit arrives in your account. Thes can vary. For Bitcoin deposits, there will be 6 block confirmations.

With other types of cryptocurrency available on the cryptocurrency market (such as UDC, DAI, and Ethereum assets), there are 30 confirmations.

Once these confirmations have gone through and your account has been credited, you’ll receive an email from Hodlnoaut.

If you want to be able to track your transaction’s status in the meantime, you can use a block explorer (for example, Etherscan).

Overall UX and Hodlnaut Dashboard

The overall UX experience with Hodlnaut is incredibly positive. It’s easy to use, which means you can quickly start earning interest without having to put in too much work. The website is simplistic and clean, which means it’s easy for any user to understand how to use it.

Additionally, customer service is available if you have any issues with lending or with signing up. It’s friendly to people who are new to crypto since there isn’t a minimum deposit amount.

When you look at the dashboard, you can easily see everything you need to.

By going to your “Account Overview” area, you can see your portfolio’s value, how much interest you’ve earned, and the due date of the next interest payment.

There’s also a progress bar that will make it easier for you to understand the information in front of you.

Fees

There are a few fees you have to pay when you use Hodlnaut. The first are blockchain transaction fees. Basically, you’re paying for the work behind the transfer. These are automatically charged when you deposit cryptocurrency into your account.

Then, when you make a withdrawal, you’ll be charged for this, too.

On top of these fees, there are the Hodlnaut fees, which are how Hodlnaut makes money (you can see that more in detail in the next section).

Because Hodlnaut is following the laws in Singapore by operating under a grace period and having applied for a license under Singapore’s new regime, it checks out legally. This is a point in its favor if you want to know if Hodlnaut is safe.

But it doesn’t stop there. The Singapore Fintech Association has recognized Hodlnaut as a certified Fintech. The regulatory authority in Singapore considers this to be a recognized credential.

Additionally, Hodlnaut has been selected by the Infocomm Media Development Authority of Singapore as a blockchain company that’s recognized.

This shows that Hodlnaut is putting in the work to be legal, regulated, and compliant within the world of cryptocurrency.

This company also has reputable investors and partners. They include Sparrow, BitGo, Three Arrows Capital, The Singapore Management University, and Antler.

As for security specifics, the platform puts all of its traffic is put through SSL encryption. It exists on AWS, on a cloud infrastructure that’s secure. They keep as much data as they can anonymous and encrypted.

Additionally, industry standards are used for password hashing and algorithm creation. When you deposit funds on Hodlnaut, BitGo secures them.

Of course, like with many DeFi products, there isn’t a full guarantee of security.

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Pros and Cons of Hodlnaut

Pros

  • High-interest rates
  • No lock-in periods or minimum deposits
  • Funds being stored securely in BitGo Secure Wallets
  • Signup is fast

Cons

  • There is support for only a few cryptocurrencies
  • Withdrawals and KYCs are manually processed
  • There isn't an app version

Hodlnaut Review: Frequently Asked Questions (FAQs)

There are many frequently asked questions regarding Hodlnaut. These include questions related to security, how Hodlnaut makes money, whether there are any restrictions, and how interest is paid out to you. Let’s review these questions now

How Does Hodlnaut Make Money?

When Hodlnaut builds up the interest of your cryptocurrency investments, they lend these assets to vetted and established financial institutions. Then, when they get the money back, they keep a small amount of the earned interest. The rest goes to you.

Are There Restrictions?

When it comes to how much you can deposit in your Hodlnaut account, there aren’t any restrictions. Put in whatever amount you want and you can start earning interest fast. However, withdrawals are limited. You can only take out 100 BTC every 24 hours.

How Is Interest Paid Out?

When you earn interest, Hodlnaut immediately deposits it into your account. Accrual occurs at the end of each day. However, be aware that your account will only be credited at the end of each month, so you should plan your financing accordingly.