September 30, 2021

Hodlnaut Review

Read more about Hodlnaut
This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by reading our website and using our links. (read more)

Hodlnaut lets you earn compound interest on your crypto, but is it safe and legit? Read on to find out.

Once you buy cryptocurrency, what exactly can you do with it?

With Hodlnaut, you can earn nearly 13% interest on your crypto holdings. But is it a trustworthy platform?

And where do they store your assets?

In this review, learn about the features, fees, and security of Hodlnaut. Plus, find out how it compares to popular competitors Celsius and BlockFi.

What is Hodlnaut?

Founded in 2019 by Juntao Zhu and Simon Lee, Hodlnaut is a Singapore-based crypto lending platform. They reached 5,000 users in May of 2021, with $500 million assets under management.

On Hodlnaut, users can earn up to 12.73% interest on their cryptocurrency (at time of writing), paid weekly, on their 6 supported assets including popular coins Bitcoin and Tether.

They also offer fixed-term, crypto-backed loans for users with over 100 BTC to deposit, and a token-swap service.

Hodlnaut is currently accessible through their desktop site, though they have an iOS app in the works. Other upcoming features include integration with iTrust.Insure, portfolio management, and auto- or scheduled swaps.

What Cryptocurrencies Do They Support?

At time of writing, Hodlnaut has a fairly limited range of cryptocurrencies. They support the following 6 popular cryptocurrencies and stablecoins:

  • Bitcoin, Ethereum, Dai, Wrapped Bitcoin, USD Coin, Tether

Where Are They Available?

Hodlnaut is available in countries all over the world, but in compliance with sanctions, is not available in the following countries:

  • Iran, North Korea, Sudan, South Sudan, Syria, Cuba, or any other country specified by the Sanction Authority

Hodlnaut Features

Hodlnaut has a variety of useful features for crypto traders and "hodlers" to take advantage of. Let's look at them in detail, below.

1. Interest-Earning Accounts

As a crypto borrowing and lending platform, Hodlnaut's main feature is its interest accounts.

These accounts work similarly to high-yield savings accounts offered by traditional banks. But because the risk is higher with crypto, the interest rates are proportionally higher as well.

Like similar platforms, Hodlnaut usually offers higher rates for stablecoins than they do for other cryptocurrencies. Stablecoins are coins whose value is pegged, at least in theory, to the value of a fiat currency such as the U.S. dollar.

Interest rates vary by coin and by volume of deposits. Each coin has a range of potential rates, with higher rates offered for smaller deposits, and decreasing the more you invest. You'll still keep the higher rates on your original investments, but only up to the threshold of the next rate.

Here are Hodlnaut's highest and lowest rates per coin at time of writing.

CryptocurrencyHighest Potential Rate (APY)Lowest Potential Rate (APY)
Bitcoin7.46%1.00%
Wrapped Bitcoin7.46%1.00%
Ethereum7.46%2.02%
Dai8.32%2.02%
USD Coin12.73%2.84%
Tether12.73%3.04%

These rates may change due to market conditions, but you should always be able to find up-to-date rates here.

Hodlnaut presents rates both in APR and APY. APR is the interest rate without taking into account compound interest, while APY is the effective rate when you include compounding over the course of a single year.

Can I lose money on Hodlnaut?
Yes, there is always risk involved with lending out your crypto. Hodlnaut interest accounts work by lending out user funds at higher rates than the accounts themselves pay. Although Hodlnaut takes care to minimize counterparty risk by maintaining LTVs of 70% or lower, the possibility of default on loans exists. As a general rule, never invest money you cannot afford to lose.

If you're worried about losing your funds, remember that you can deposit and withdraw at any time, and there are no lock-in periods or minimum deposits.

2. Crypto-backed Loans

Crypto-backed loans are Hodlnaut's other main offering for those with crypto holdings. However, Hodlnaut currently only offers these loans to corporations and institutions, not to individuals.

Here's how they work:

Because of the way crypto is regulated, selling it is considered a taxable event, and you'll need to pay capital gains taxes on any profits you've made.

Crypto-backed loans are a way to avoid this if you are only interested in taking money from the account temporarily.

Every crypto investor is well aware of the volatility of the market—its tendency to experience dramatic shifts in very short periods of time.

By taking a loan against the value of your crypto rather than selling it, you can avoid paying taxes on your gains. Not to mention, you won't have to worry about missing out on potential growth while you're not holding it.

An Example: Imagine you needed $30,000 at short notice, and so you sold a Bitcoin you'd been holding. Then, right after you sold, the price of Bitcoin rose 20% in a matter of hours. All those potential earnings would be lost. But with a crypto-backed loan, the Bitcoin is still yours. You can pay back the $30,000, and pocket the 20% gain.

3. Token Swaps

Hodlnaut's token swaps are a convenient feature that allows users to switch seamlessly between the supported cryptocurrencies available on the Hodlnaut platform.

If you have Bitcoin and want Ethereum, you can use token swap to make the trade, and best of all, the service is fee-free.

Fees to Look Out For

Luckily for Hodlnaut users, there aren't too many fees you have to worry about when using the platform. But there are some you should be aware of.

They charge withdrawal fees when you take your cryptocurrency off the platform to pay for transactions on the blockchain. These fees vary depending on market conditions and from coin to coin, but here's what the rates looked like at time of writing.

CryptocurrencyWithdrawal FeeMinimum Withdrawal
Bitcoin0.0004 BTC0 BTC
Wrapped Bitcoin0.0004 WBTC0 WBTC
Ethereum0.0036 ETH0 ETH
Dai10 DAI0 DAI
USD Coin10 USDC0 USDC
Tether10 USDT0 USDT

They do not charge Deposit Fees or Token Swap Fees.

You can find their up-to-date fees listed here.

Security

With the inherent risks involved in trading and storing crypto, security of a platform is an important issue to consider. Here are some of the tools that Hodlnaut employs to keep your data and your coins safe.

  • Secure Cloud Infrastructure on AWS
  • SSL Encryption
  • Password hashing
  • Two-Factor Authentication Required
  • Address Whitelisting
  • Rate-Limiting to prevent brute force attacks
  • Partnered with Fireblocks to ensure crypto safety
  • Security Awareness Training for employees
  • Optional individual insurance through Nexus Mutual's Hodlnaut Custody Cover
  • No use of hot wallets

Is Hodlnaut FDIC-Insured?
No, due to the regulatory restrictions around cryptocurrency, Hodlnaut is not FDIC insured. They do not deal with fiat currencies.

How It Compares

Hodlnaut vs Celsius
Celsius is another well-known crypto borrowing and lending platform. Based in London, they offer many of the same services that Hodlnaut does, including interest accounts and crypto-backed loans.

Celsius offers potentially higher rates of return than Hodlnaut does, with the caveat that they operate a tiered loyalty system, with bonuses offered for holding their proprietary token CEL.

This is a downside for users in the U.S., as it is only available there to accredited investors. Overall, traders in the United States will find better returns on Hodlnaut.

 

Hodlnaut

Celsius Network

SPECIAL OFFER
Earn Interest on BTC - Learn More

SPECIAL OFFER
Sign Up Bonus: $40 BTC - Learn More

 

Benefits and Features

Stock Trading
No
 
Options Trading
No
 
Cryptocurrencies SupportedBTC, DAI, ETH, USDC, USDT, WBTCBitcoin, Ethereum, USDC, Gemini Dollar, Paxos Standard, LINK, BAT, COMP, UMA, SNX, AAVE, Bitcoin SV, Bitcoin Cash, Litecoin, Mana, Uniswap, Polygon, Livepeer, Kyber Network, Binance USD, Ethereum Classic, EOS, TrueCAD, TrueHKD, TrueAUD, TrueGBP, TrueUSD, USDT, 0x, DAI, PAX Gold, OMG Network, Stellar, Ripple, Dash
Countries Supported
Over 100
Over 100
Fiat Currencies Supported
0
USD, AUD, GPB, EUR, CAD, CHF, DKK, NZD, NOK, SEK, RUB, BRL, CZK, RON, HUF, HKD, BGN, TRY, INR, IDR, HRK, PHP, MYR, ZAR, JPY, PLN, VND, ISK, CLP, COP, ARS, PEN, KES, TWD
Digital Wallet
Yes
Yes
Transaction Fee
No
No
Copy Trading
No
No
Limit Orders
No
No
Margin Trading
No
No
Spread
No
1%
Interest Accounts
Yes
Up to 17.78%
Crypto Loans
Yes
Yes
Bank Account Purchase Fee
No
No
Mobile App
Yes
Yes
ACH Transfer Fee
No
0.1%
Wire Transfer Fee
No
0.5%
Crypto Conversion Fee
No
No
Address Allowlisting
Yes
Yes
Anonymity
No
No
Biometric Login
No
Yes
Cold Storage
Yes
Yes
Maximum Trading Amount
No
No
Two-Factor Authentication
Yes
Yes
Withdrawal Limit
100 BTC per day
$1 USD minimum; $600,000 USD limit per 24 hours

Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details.

Hodlnaut: Pricing information from published website as of 09/08/2021.

Celsius Network: Pricing information from published website as of 05/04/2021.

Read more: Celsius Review

Hodlnaut vs BlockFi
BlockFi has a very similar model to Hodlnaut's, though they offer 8 or 9 coins to Hodlnaut's 6. They do not have any requirements for earning the highest rates, and like Hodlnaut, their returns decrease with larger deposits.

In general, Hodlnaut has much more generous interest rates, sometimes nearly double what BlockFi is offering.

However, U.S. users may take comfort in the fact that BlockFi is a New York-based company, which may be less risky than one based in Hong Kong, like Hodlnaut.

 BlockFi
 Learn MoreVisit Site
 

Hodlnaut

BlockFi

SPECIAL OFFER
Earn Interest on BTC - Learn More

SPECIAL OFFER
Get Up to $250 in Bonus BTC - Learn More

 

Benefits and Features

Stock Trading
No
 
Options Trading
No
 
Cryptocurrencies SupportedBTC, DAI, ETH, USDC, USDT, WBTCBitcoin, Ethereum, Litecoin, Chainlink, PAX Gold, USDC, Binance USD, PAX, GUSD, BAT, DAI, UNI
Countries Supported
Over 100
Worldwide, except for countries that are sanctioned or watch-listed
Fiat Currencies Supported
0
USD
Digital Wallet
Yes
Yes
Transaction Fee
No
No
Copy Trading
No
No
Limit Orders
No
No
Margin Trading
No
No
Spread
No
0.7% - 1.5%
Interest Accounts
Yes
Up to 8.25%
Crypto Loans
Yes
Yes
Bank Account Purchase Fee
No
No
Mobile App
Yes
Yes
ACH Transfer Fee
No
No
Wire Transfer Fee
No
No
Crypto Conversion Fee
No
No
Withdrawal Fee
Fees vary by coin
Varies based on cryptocurrency: 0.00075 BTC, 0.02 ETH, 0.0025 LTC
Address Allowlisting
Yes
Yes
Anonymity
No
No
Biometric Login
No
Yes
Cold Storage
Yes
Yes
Maximum Trading Amount
No
Single-trade limit of $1.2m USD or equivalent
Two-Factor Authentication
Yes
Yes
Withdrawal Limit
100 BTC per day
7-day Withdrawal Limit varies by cryptocurrency: 100 BTC, 5,000 ETH, 10,000 LTC.
Up to $5,000 USD via direct bank withdrawal
 Learn MoreVisit Site

Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details.

Hodlnaut: Pricing information from published website as of 09/08/2021.

BlockFi: Pricing information from published website as of 06/30/2021.

Read more: BlockFi Review

Bottom Line

While Hodlnaut doesn't match the highest rates available with some of their competitors, they do offer fairly generous returns without any expensive hoops to jump through, which many similar platforms can't say.

Their range of offerings for retail investors is somewhat limited. But if you're looking for interest accounts without access to the crypto-backed loans that some companies offer, then Hodlnaut may be for you.

Coinbase

Earn $5 in bitcoin for getting started on Coinbase

Personalized $5 reward offer is displayed after account creation. Limited time offer and while supplies last. Offer available to new users who have not previously verified their identification. Offer not available to new users who were referred to Coinbase through the Referral Program or who have previously opened an account using different contact information. Coinbase may update the conditions for eligibility at any time, in its sole discretion. See Terms and Conditions.

BlockFi

Get Up to $250 in Bonus BTC

DepositCrypto Bonus
$100 - $1,499$15
$1,500 - $19,999$20
$20,000 - $39,999$40
$40,000 - $74,999$75
$75,000 - $99,999$100
$100,000+$250

Crypto.com

USD $10 Sign Up Bonus

You will need to stake in $1000 CRO to earn USD $10 worth of CRO. Only the first amount of CRO you stake is used to calculate the sign-up bonus.

eToro

Trade Popular Cryptocurrencies

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

Jeremy Harshman is a protector of art and writing at CreditDonkey, a crypto comparison and reviews website. Write to Jeremy Harshman at jeremy.harshman@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Read Next:

Best Cryptocurrency Exchange

Best Cryptocurrency Exchange

Cryptocurrency Adoption Rate

Cryptocurrency Adoption Rate

How to Invest in Cryptocurrency

How to Invest in Cryptocurrency

Coinbase Alternatives

Coinbase Alternatives

Kraken Review

Kraken Review

Gemini Review

Gemini Review

Compare:

Leave a comment about Hodlnaut Review?



Bittrex Review

Bittrex Review

Bittrex is a crypto trading platform offering a wide range of cryptocurrencies to buy instantly. But is it safe and legit?

About CreditDonkey
CreditDonkey is a crypto comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2021 CreditDonkey Inc. All Rights Reserved.