Hodlnaut Earn Interest On Your Crypto

Ethereum

I believe you would already have heard of Hodlnaut. Hodlnaut is a platform that provides financial services for individual investors like you and me where we can deposit our cryptocurrencies and earn interest on our cryptocurrencies by lending it to corporate borrowers.

Until today, I still have problems pronouncing the word “Hodlnaut“. Why would the founders come up with such a geeky name?

Well, according to them, Hodlnaut is a combination of HODL and Astronaut! Hodl is common slang in the cryptocurrency community, where it depicts an act of holding the cryptocurrency rather than selling it.

I am not going to compare the differences between Hodlnaut, BlockFi, Celsius and Nexo as Seedly has written an excellent article to compare the differences and you can read up more there. The only difference I want to call out here is that Hodlnaut is a Singaporean company.

How Hodlnaut works?

  1. Deposit your Bitcoin or alternative coin to Hodlnaut.
  2. Earn compound interest on your asset.
  3. Receive payouts and withdraw funds.

Sounds simple?

How much Interest can I earn on Hodlnaut?

Below are the interest rates (APR/APY) that I have copied from my own account.

Hodlnaut Interest Rates 12 June 2021

Based on an APY of 6.2%, a deposit of 0.5 Bitcoin (BTC) with Hodlnaut will give you 0.03196155.

At the point of writing, 1 Bitcoin (BTC) is S$47,364.12. This means 0.5 Bitcoin (S$23,682) will give you a return of S$1,514 in 12 months.

But of course we know that the price of Bitcoin can either go up or down after 12 months so how much return is really based on the price of Bitcoin at that point in time.

Hodlnaut Bitcoin 12 Months Interest

Summary

If you wish to take a look at features that the Hodlnaut platform offers, they have a demo account where you can try it yourself for the look and feel.

I have signed up for my Hodlnaut account and deposited some Bitcoin and USDC into it. Interest is paid weekly and at the point of writing, the next payout is on 14th June 2021.

Unfortunately, Hodlnaut does not let you purchase crypto directly from their platform. Nevertheless, there are many platforms out there that let you purchase crypto. You can use either Coinbase or Crypto.com Exchange to purchase the coins and send it to your Hodlnaut account.

Join me on Hodlnaut now! If you sign up using my Hodlnaut referral link, you will receive a US$20 signup bonus after making an initial deposit equivalent of US$1000 on any of Hodlnaut supported assets. Bonus payouts are paid in the same asset deposited.

BTC and ETH June 2021 Updates

Bitcoin

Last month, Bitcoin (BTC) price was at its peak but it has since crashed to as low as US$33K before stabilizing at the levels between US$35K to US$40K.

I sold off BTC when it peaked and bought in tranches when prices started falling. However, I am still making a loss since prices have not recovered.

Bitcoin crashed badly as much as 40% from its peak. The reason for the crash was a slewed of bad news whereby speculators sold down Bitcoin.

Bitcoin BTC Price 7 June 2021

Tesla will no longer accept Bitcoin as payment over climate concerns, Elon Musk

We all know every twitter that Elon Musk makes either bring the Cyptocurrency over the moon or down the valleys. The prices of Bitcoin fell 10% after he made that comment on 12th May 2021.

Chinese government crackdown

Perhaps a bubble has already appeared in Cryptocurrency and therefore the Chinese government decided to step in. On 21st May 2021, the Chinese authorities vowed to crack down on mining and trading of the Cryptocurrency.

China is known for its large Cryptocurrency mining farms which in turn hinders its green energy goals since we all know what mining consumes a lot of electricity and produces a lot of heat which is bad for the environment.

Chinese microblogging platform has banned several influential cryptocurrency accounts for its support for the Chinese government.

Is investing in Cryptocurrency such a bad idea?

The big issue for Cryptocurrency is really the lack of real world adoption and utility.

Having said that, payment giants such as Visa and Mastercard are partnering with Crypto exchanges to issue cards that rewards you with crypto such as the MCO card and Coinbase card.

S&P has recently launched three indexes to track the prices of Bitcoin and Ethereum. They are SPBTC, SPETH and SPCMC. SPBTC tracks the prices of Bitcoin and SPETH tracks the prices of Ethereum. SPCMC is a “Megacap” combo of Bitcoin and Ethereum.

If investing in Cryptocurrency is such a bad idea, why is S&P tracking them?

Too Many Coins

In my opinion, there are too many Cryptocurrency coins in the market. Not all of them can take off like Dodgecoin.

For myself, I still believe in Bitcoin and Ethereum as these are the forefathers of the rest of the coins.

My Last Words

In summary, I believe there is still potential for Bitcoin and Ethereum. Prices could go upwards or downwards and being volatile is just the nature for Cryptocurrencies.

Ethereum ETH Price 7 June 2021

I shall continue to accumulate BTC and ETH in small tranches while waiting for the next bull run.

If you wish to jump onto the Cryptocurrency bandwagon, Coinbase where I first got started with Crypto. You can occasionally learn to earn free coins.

Sign up using my Coinbase affiliate link and once you complete a buy or sell of $100 USD or more (or 100 USD equivalent of your domestic currency), you and I will receive 10 USD (or 10 USD equivalent of your domestic currency).