Hodlnaut Review 2022 - Our #1 Pick For Crypto-Lending
DO NOTE – The below review was originally written in early 2022 before the collapse of Tera, UST, and the subsequent collapse of other cryptolending platforms. We no longer hold cryptocurrency on cryptolending platforms (such as hodlnaut) and believe them to not be worth the risk they entail currently. With that being said we do feel hodlnaut is less at risk compared to other platforms, but the risk is still too high in our opinion currently to continue using the platform.
August 9th UPDATE — Hodlnaut has recently paused withdrawals, which suggests they may be insolvent or experiencing liquidity issues. As we mentioned in our newsletter in early May we felt Hodlnaut was at-risk (along with other crypto-lending platforms) and withdrew our assets from them and suggested others consider doing the same as we expected they would have liquidity issues in the following months, and potentially has solvency issues in the long-term.
We are not and weren’t aware of any problematic practices by Hodlnaut before now, however like Celsius and Voyager we believed they were at-risk many months ago. For following updates check Hodlnaut’s official pages — at this point our fears/warnings have played out and have nothing more to say on the matter that wouldn’t just be speculation.
Hodlnaut is without a doubt our #1 choice when it comes to crypto-lending and interest — not only do they offer some of the best rates when compared to other platforms currently but they also have great security features and low fees compared to other platforms. Unlike most other crypto-lending platforms Hodlnaut doesn’t require accreditation status from US clients (due to being a Singapore-based company), making it stand out as clearly the best option for most people.
As much as we like Hodlnaut there are some downsides when using them — namely that they do not currently offer loans against cryptocurrencies you hold with them, and they also do not offer any leverage offerings on the platfrom. Hodlnaut is all about crypto-interest and excels in that regard, but lacks features some other platforms offer.
With that being said, we’d say Hodlnaut is the #1 crypto-lending platform right now for US people and most people around the world — unless you want to dabble in DeFi lending and the hassle of managing it all yourself, and have tens of thousands to lend to make it worthwhile, Hodlnaut is the best hands-off solution currently for most people.
Not only are their rates good but they do not have ridiculously low caps for their first tiers like some of their competitors — instead they offer their highest rates on a sizeable amount of crypto (covered below), much more than most people have.
Table of Contents
Hodlnaut's Unique Features:
While there’s many cryptocurency lending platforms to earn interest with Hodlnaut has some unique features that really stand out above the competition — of course every platform has their unique benefits and there’s some features Hodlnaut may not have that other platforms may have (such as crypto-backed loans), however we’d say the features Hodlnaut has, combined with it’s offerings in general, make it one of the best platforms currently for crypto-lending.
Highly Regulated Non-US Entity
In the cryptospace people often look down on regulation, as do we, however this is generally because of the way the USA regulates and enforces their demands on financial markets with unfair unhelpful ‘accredited investor’ regulations and other seemingly anti little-guy regulations.
That’s not how all regulations are though –– Hodlnaut is regulated to a high degree, but in Singapore, a place that is a bastion of financial freedom and oppertunity. Their regulations focus not on restricting investors, and little guys, but ensuring businesses are doing what they’re saying and not being honest and transparent about their activities. This being said, Hodlnaut is very trustworthy and secure as a result, despite being highly regulated in Singapore.
Being a non-US entity they are also not subject to US regulations or punishments, meaning even US-clients can earn interest and have full platform functionality, unlike many other crypto-lending platforms on the market today.
The Ability to Choose Your Payout Currency
While Hodlnaut is not alone in offering this feature (although most platforms do not offer it), where you can earn on Bitcoin and get paid in Ethereum, Hodlnaut is unique in the sense that they offer this feature without any hidden fees or slippage.
With Hodlnaut we received the correct converted amount paid out to us when we tried out this feature — with slippage/fees seemingly at 0% (+/- 0.1%) every time we got paid out when using this feature, while the competitors that do offer this feature had slippage/hidden-fees of around 1% to 3%. We were told specifically to remove the name of the competitior(s) who charge these hidden fees, but to say the least it was all the competitors that offer the feature.
Great Support Quality & Response Times
While Cryptocurrency-related companies have a bad reputation when it comes to customer service, sometimes taking weeks to respond to basic enquiries, we’ve had no such issues when using Hodlnaut — we’ve always had our inquiries answered within a couple of days.
Hodlnaut has also been competent and answered them first time around rather than…well lets just say some competitors seem to have support staff who either do not understand English very well or are incapable of actually helping you with most issues and need to ‘escalate’ the support ticket before you get help.
Truly Fee-Free Token Swaps & Trading
While many platforms claim to have fee-free trading or crypto swaps we’ve yet to encounter one (other than Hodlnaut) that wasn’t lying about this pretty badly, or using deceptive language to claim such things when in reality, in practice, you’d get charged 1%-3% for transactions each swap.
With Hodlnaut there’s truly no fees or hidden slippage, we tried the swap feature out numerous times and generally had a discrepancy in price of $10 on a $40,000 order (when using coinmarketcap’s general price as a guide), which is easily explained by simply different exchanges having different order book pricing — that’s a ‘fee’ of 0.00025% or less than any exchange we’ve tested charges, less than kraken, binance, Coinbase, FTX, Celsius Network, any other platform.
Hodlnaut's Biggest Pros & Cons:
While we’ve talked quite a bit of Hodlnaut’s benefits relative to other platforms we’ve yet to cover their downsides, and we’ve left out quite a few pros so far still — so below we’ll go over those and give you a rough overview if that’s what you’re looking for rather than more in-detailed breakdowns. With that being said these are the main Pros of Hodlnaut:
- Some of the Highest Interest Rewards Currently
- High ‘tier-1’ caps
- Truly Fee-Free Token Swaps
- Great customer service
- Good Sign-Up Bonus (see this page for more info)
- Payout Preferences with No-Fees
- Great Security
- Allows US-Clients to Earn Interest without accredation status
- Offers DeFi-based Insurance (and CeFi insurance) for assets
Of course there’s not just pros to hodlnaut, there are some downsides you should be aware of, namely that Hodlnaut:
- Doesn’t offer interest rewards on as many cryptoassets as some other platforms
- Doesn’t offer crypto-backed loans
- Lacks built-in Portfolio Leverage Tools
- No fiat on-ramp (must buy crypto on exchange and transfer to hodlnaut)
Hodlnaut Pricing & Fees Overview:
Hodlnaut doesn’t charge any management fees or nonsense like that — in fact the only fees they have are the ones shown above — their withdrawal fees. They have one free withdrawal for both stablecoins as well as cryptocurrencies per month, then charge a marginal amount generally between $10 and $20 for each subsequent withdrawal depending on market conditions & what you’re trying to withdraw.
They don’t have any deposit fees, hidden swap fees, management fees, or anything else beyond their small withdrawal fees that basically every platform charges.
Hodlnaut Expected Return & Historic Yields:
Hodlnaut’s Expected & Historic return is based entirely off the interest they give on crypto-assets, which is generally a bit higher than other platforms — historically this has been quite high at around 5-8% on most cryptos and 12%+ on stablecoins/fiat, however in recent times these rates have been reduced, like they have on all crypto-lending platforms, so going forward the expected returns are more around 5% on crypto and 8-10% on stablecoins like USDC or USDT.
Keep in mind these expected returns are crypto-on-crypto returns, in practice 5% yield on bitcoin may yield you a 20% return in fiat if the cryptomarket is hot and prices are rising over the year you’re earning interest — this is what happened in 2021 and what made crypto-lending so popular and relatively mainstream now.
How does Hodlnaut Compare to Their Competitors?
Hodlnaut generally offers better rates than the competition, but lacks crypto-backed loans, as many coin offerings, a fiat on-ramp, debit cards, and other features many larger crypto-lending platforms offer.
Due to current changes in the industry it’s really hard to compare them to other platforms, as all crypto-lending platforms are at-risk currently and truth be told there’s little way to know which is better or safer on an operational-level, beyond frameworks outlined already in this article.
Our Experience Using Hodlnaut for The Last Few Years:
We started using Hodlnaut quite some time ago and while we honestly didn’t trust it at the start and just went to it due to the insane yield they gave at the time, over time our trust grew with them as their team, regulatory compliance, transparency, and overall legitimacy grew.
We’ve never had problems withdrawing or deposting, and have had excellent service when we contacted their support team, as well as when we asked non-support related questions regarding their operations and security protocals, and of course have never had a payment missed by them. Returns are obviously fixed relative to the interest they gave at the time, which used to be a bit higher than today (5%-8% on crypto), but they’ve consistently offered more than larger crypto-lending companies, both during the bearish and bullish times since we’ve started using them.
Hodlnaut’s rates are subject to change at any time of course, so we’d recommend checking the rates on the platform directly to see what you can expect immediately — however in our opinion for the next few years it’ll be around a 5% yield annually on most crypto assets and will remain slightly more than most platforms. We’ll make sure to let you know if this changes and they begin offering less than competitors, but this is our expectations as of now.
Closing Thoughts & Conclusions:
Hodlnaut is our personal favorite and #1 choice for crypto lending currently — they have the best features when it comes to lending and earning interest in particular with next to no downsides as covered above. With that being said we don’t only use Hodlnaut and we use most crypto-lending platforms still, primarily for diversification purposes — but also some platforms have better features when it comes to things like crypto-backed-loans.
We personally fill up the tier-1 limits with Hodlnaut and keep most of our crypto assets (that are being lent and not staked) with them due to their higher rates and better practices when it comes to fees & hidden charges (them not charging any or introducing any silently like most platforms).
If you think Hodlnaut is a good choice for you as well you can sign up through this link and you’ll be eligible for their max sign-up bonus (generally around $30) after depositing some funds into your account — generally a couple hundred dollars worth of cryptocurrency.
Hodlnaut Review FAQ's:
Below we’ll cover the FAQ’s we’ve been asked, or encountered, or even had asked ourselves about Hodlnaut when we first were checking them out and as we used them — If you have other questions feel free to contact us and we’ll get back to you as soon as we can — and maybe even add our answer down below.
Is Hodlnaut Legit?
Yes, Hodlnaut is 100% a legitimate company — it’s regulated in Singapore and has been providing crypto-lending services for many years now. They are very transparent and public about who they are, who works for the company, and their operations, and are arguably one of the most legitimate and transparent crypto-lending companies currently.
Is Hodlnaut a Wallet?
Hodlnaut is not a wallet, but instead a custodianship platform similar to Coinbase, however rather than just holding your funds they earn you yield on the crypto assets you store on the platform. Hodlnaut is not a decentralized wallet, but instead a centralized custodian that helps you earn yield on your crypto.
Is Hodlnaut Regulated?
Yes Hodlnaut is regulated, including by the ever so hard to get approval from MAS (Monetary Authority of Singapore) which is extremely strict about transparency, solvency, and accounting practices — arguably the toughest in the world, making Hodlnaut a very safe platform to use in our opinion.
Does Hodlnaut offer Sign-up bonuses or rewards?
Yes Hodlnaut offers sign-up rewards for new users generally around $20 to $30 — you can read more about their current promotion on this page of our website, but if you want to just get the sign-up bonus you can sign up through this link to qualify for it — once you make your first deposit (and complete the KYC forms online) you should get the bonus immediately.
What Countries is Hodlnaut Available in?
Hodlnaut is available in basically every non-sanctioned country in the world, including the USA, so as long as you’re not from North Korea, Iran, or a few other countries that are sanctioned widely you can use Hodlnaut without any issues, even if you’re a non-accredited investor (in the case of US clients).
Does Hodlnaut have Insurance?
Hodlnaut has insurance through the standard means all crypto lending platforms have (Ledger and/or BitGo) but they also have an optional insurance through Decentralized 3rd-party applications such as Nexus Mutual which offer additional protection if you so choose — no other platform offers this level of insurance currently, so if you want to be insured to a better degree then Hodlnaut + Nexus Mutual is the way to go.
Keep in mind no amount of insurance will protect you in the case of mismanagement of funds, and hodlnaut may not manage funds properly — there’s really no way of knowing what’s going on behind the scenes, so while we think they’re safer than other platforms, they aren’t entirely safe — no crypto-lending platform is entirely safe though.