Making Money with Hodlnaut: My 2021 Review

Hodlnaut review

With Hodlnaut you can earn interest on your cryptocurrency. Instead of just storing your crypto in a wallet and waiting for the price to rise, Hodlnaut will grow your holdings and wealth.

Hodlnaut is a financial savings platform that is based out of Singapore. Using Hodlnaut, you can earn up to 12.7% interest on your crypto. 

I’ve been using Hodlnaut for the past couple of months and have really enjoyed the high interest rates, free token swaps and weekly payouts. Here’s my full review for 2021:

Making Money on Your Crypto with Hodlnaut

When you deposit crypto on Hodlnaut it will start generating interest right away. It works just like a savings account. Here’s what you need to know about Hodlnaut before signing up:

Why I like Hodlnaut – The Best Features

I’ve used a number of platforms to earn interest on my crypto. This is why I choose to use Hodlnaut:

Weekly Interest Payments

Hodlnaut pays interest every week. With more frequent payments your crypto balance will compound faster. Compounding means your interest payment will grow each week and your crypto holdings will accelerate faster over time.

Hodlnaut pays interest every Monday. You can see a running total during the week of how much interest you’re earning.

Free Token Swaps

This is my favourite feature on Hodlnaut and it’s why I recommend it over other platforms. On Hodlnaut you can swap between cryptos without paying any fees. This can be quite costly on other platforms. On Hodlnaut I can swap between BTC and ETH or ETH and USDC – whatever I want to do generate the best interest rates.

Choose how you Earn Interest

This is another killer feature of Hodlnaut. You can choose which crypto your interest is paid in. For example you can Deposit Bitcoin to generate crypto interest and then get paid in Ethereum. I’ve deposited multiple coins on Hodlnaut but I’m earning interest in Bitcoin.

You can choose how you earn interest through Hodlnaut

Earn Crypto Interest on Multiple Coins

Hodlnaut supports multiple coins. You can earn interest on BTC, ETH, USDC, DAI, USDT (Tether) and WBTC (Wrapped BTC). While Hodlnaut doesn’t support as many coins as some other interest generating platforms, they do support the major cryptos.

Excellent Interest Rates

Hodlnaut has some of the best interest rates for crypto. As of writing you will earn 7.5% APY on Bitcoin and 12.7% APY on USD Coin (USDC). For comparison, BlockFi pays 4.5% per annum on Bitcoin deposits. This could make a massive difference over the course of a year or more.

Withdraw Anytime – No Lock In Periods

When you deposit crypto on Hodlnaut there are no fixed-terms or lock in periods. You can withdraw your crypto at anytime.

Things to Know before Signing up to Hodlnaut

Here are some important things to consider before signing up to Hodlnaut.

Verification Process

There is a verification process on Hodlnaut. This is standard across all legit crypto savings accounts and crypto exchanges. If you’ve ever signed up to a crypto exchange before you will be familiar with this process. Unlike some exchanges, it’s not entirely automated. It will take a couple of days before they approve your account.

No BEP-20 Support

You can only deposit coins like USDC and USDT using the ERC-20 blockchain. Some platforms have started to support Omni and BEP-20 chains which offer cheaper transaction fees. So depending on how crowded the Ethereum network is, you could end up paying high transaction fees when depositing and withdrawing.

One smarter option to get around the Ethereum fees is to deposit Bitcoin and then use the free token swap feature to convert it into Ethereum or other ERC-20 tokens. This is what I did and it worked really well.

Insurance and Custody Cover

Crypto has inherent risks. Platforms can get hacked and there can be bugs in protocols and smart contracts. Hodlnaut gives you the option for taking out insurance via Nexus Mutual. Nexus Mutual is an insurance company for crypto platforms. This can be done through the “User Settings” page in your account. Whether you take advantage of this is up to you. It’s all about balancing risk, but I would recommend it for large deposits.

Funds can be insured through Nexus Mutual

Hodlnaut vs Defi – Which is Better

Both Hodlnaut and Defi interest platforms have pros and cons. The biggest con with Defi platforms at the moment are the high transaction fees. Unless you have a lot of crypto, then earning interest through Defi probably isn’t worth it. Hodlnaut doesn’t charge any fees for transactions beyond the withdrawal network fee.

The big pro of Defi is that its decentralised. This means there is no one entity controlling your funds and you always (should) have control of your keys. There is a risk that there are bugs in the smart contracts and people have lost a lot of money from these bugs while using Defi.

Personally I like the simplicity of CEFI platforms like Hodlnaut.

How does Hodlnaut Pay Interest

Hodlnaut is known as a crypto lender. They only lend assets to corporate entities and only companies with good credit scores. Hodlnaut uses a loan-to-value (LTV) ratio of 70% or less. So the risk of default is lower. If a borrower was to default on a payment, Hodlnaut would liquidate their collateral to cover the default.

Hodlnaut Interest Rates

These are the current interest rates that Hodlnaut pays on your crypto. Note these interest rates could change depending on demand and market conditions:

CryptocurrencyInterest Rate (APY)
Bitcoin LogoBitcoin7.5%
Ethereum LogoEthereum7.5%
Wrapped Bitcoin LogoWBTC7.5%
Dai LogoDai8.3%
USDC LogoUSDC12.7%
USDT LogoUSDT12.7%

Getting Started with Hodlnaut

Are you looking to start making money with Hodlnaut? Here is how to get started generating interest on your crypto:

  1. Create an Account – Signing up is quick and easy.
  2. Verify your Identity – You will need to verify your identity to start earning interest. This process is automated but does require manual approval. So it isn’t instant.
  3. Deposit – Generate a deposit address from within your Hodlnaut account and send funds from your exchange or wallet. You can’t purchase crypto through Hodlnaut. If you’re looking to Buy crypto to deposit on Hodlnaut I would recommend doing so on CoinSpot.

How Much Money Can I Make with Hodlnaut?

To give you a rough idea of how much you’ll make I put together this calculation.

If you were to deposit $1000 for 12 months, you’d make around $127 in that time frame. While not a huge amount remember that this will continue to compound so over time this amount will grow and grow. Compared to the non-existent interest from a bank accounts, this is a legit way to generate passive income.

Tips and Tricks for Getting the Most out of Hodlnaut

  • Choose which Currency to Get Paid in – You can choose which currency your interest is paid in. By default it gets paid in kind. But if you believe a crypto like Ethereum or Bitcoin has the most growth potential, then you might want to get paid in that crypto.
  • Token Swaps – You can swap one crypto for another without paying any fees. This means you can always take advantage of the highest interest rate. However just because USDC pays more interest doesn’t mean you’ll make more money than holding Bitcoin. This is because the price of Bitcoin might grow more than USDC which is always locked at $1.

Hodlnaut Bonus – How to Get $20 Free

Did you know you can get $20 worth of crypto for free when you sign up to Hodlnaut using a referral link and deposit $1000 worth of crypto. Here is how it works:

  1. Sign up to Hodlnaut here
  2. Make sure you enter the referral code: bnDSdpzs5
  3. Deposit $1000 USD worth of any crypto
  4. Claim your Bonus!

You can find out more details about using a Hodlnaut referral code here.

How Safe if Hodlnaut

Hodlnaut was founded in 2019 and is regulated by Singapore. I’ve done some research, looking into how safe Hodlnaut is, and this is what I’ve found:

Is Hodlnaut legit?

Yes I do believe they are legit. They have been operating for quite a while and have established a good reputation. I’ve not come across any issues regarding withdrawals or interest payments. Their business model is legit – lending crypto is a legitimate way to generate interest and a good business. There is a high demand from exchanges, traders, liquidity providers, market makers and other businesses to borrow crypto.

Unlike some platforms which are anonymous (always a big red flag for me), we know the people and the company behind Hodlnaut.

Is Hodlnaut Legal?

Yes, Hodlnaut is legal. It’s regulated under Singapore law. Some countries do ban Cryptocurrency so it’s up to you to make sure of what the laws are in your country.

How Secure is Hodlnaut

Hodlnaut hasn’t been hacked. Here are some of the practices Hodlnaut uses to secure their service:

  • Cold Wallets – When funds are deposited on Hodlnaut, your crypto will either get lent to borrowers or stored in cold wallets. Hodlnaut doesn’t use Hot Wallets to store crypto. Hot Wallets are online where as a cold wallet is offline not available to hackers.
  • Two Factor Authentication – Hodlnaut uses Two Factor Authentication. So if anyone was to get access to your account they wouldn’t be able to login without the two factor code.
  • Security Monitoring – Hodlnaut uses AWS and has a proactive approach to security. If you are concerned about Hodlnaut getting hacked then there is an option to take out insurance against your deposits.

For more details on Hodlnaut’s security you can read through their FAQs.

In Conclusion – My Review

Overall I think Hodlnaut is one of the best ways to earn interest on crypto in 2021. They offer really good rates, have a good reputation and some killer features which make them a better alternative to BlockFi and YouHodler.

Find out more about Hodlnaut here

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Jamie Benedict
I've been covering all things crypto over the past 5 years. I invest in Bitcoin and DeFi projects.

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