Cryptocurrency lending platforms are a popular and easy way to generate passive income on your holdings. One of these platforms is Hodlnaut, which I have tested for a whole month. I decided to move all my Bitcoin and Ethereum that I am currently holding on BlockFi over to Hodlnaut. Here s why.
Centralized lending platforms are offering relatively good interest rates and are much easier to use than complex DeFi products. They are perfect to earn interest on your Bitcoin, Ethereum, and stable coins.
I don`t know what you are doing with your Ethereum and Bitcoin but I will just hold them. These are the two cryptocurrencies that I am holding for the long term. Honestly, I don`t want to sell them at all. Instead, I want to hodl them until I reach the moon. Hodlnaut helps me to reach the moon much faster as I get paid interest on top of the gains every single week. The interface of Hodlnaut is really nice and clean which makes it very user-friendly and easy to use. Like all centralized cryptocurrency platforms, Hodlnaut also requires KYC.
Every Monday, I receive an email from Hodlnaut with my interest statement. This is the first big difference to BlockFi, which pays out monthly. By receiving your interest payments weekly instead of monthly you can compound much faster.
The highest interest rate for Bitcoin and Ethereum on BlockFi is currently 4.00%, for stablecoins USDT and DAI it`s 7.50%. The thing on BlockFi is that the more you are holding on the platform, the less you get. It has a tiered interest structure as you can see on the screenshot below.
So if you hold more than 0.25 BTC or more than 5 ETH, the interest amount reduces a lot to 1,5%. More than 5 BTC or more than 50 ETH leaves you with an interest rate of only 0.25%. The interest rates on BlockFi are constantly getting lower and lower. That`s why I was looking for a good alternative lending platform and I found Hodlnaut.
The interest rates on Hodlnaut are also tiered. However, if you only compare the tier 1 rates, you quickly recognize that the interest rates on Hodlnaut are much higher than the interest rates on BlockFi. The APY for Bitcoin and Ethereum is 7.5% compared to 4% on BlockFi which is almost half!
The interest rates for stablecoins USDT and USDC are 12,7% which is the highest APY in the lending industry!
Hodlnaut is currently accepting deposits in BTC, DAI, ETH, USDC, USDT, and WBTC. I decided to test the platform for one month with a small amount of $50 in USDT before moving bigger amounts to the platform. You can choose in what supported cryptocurrency you like to receive your interest payouts in. In your account overview, you can monitor how your pending interest payout is constantly growing.
Hodlnaut is working like a clockwork. As you see in the screenshot above, interest payments are always arriving on time. As I already told you, I am not planning to sell my Bitcoin and Ethereum as I am holding them for the long term. I am not planning to sell them any time soon. When I move all my Bitcoin and Ethereum from BlockFi to Hodlnaut, I will take advantage of the free withdrawal option on BlockFi for the very first time after more than two years.
This means, that for me personally, a free withdrawal option is not important. What`s important to me is the APY in the first place. If you want to withdraw from Hodlnaut, you will have to pay a fee, that is basically just covering the regular transaction fee charged from the according to network.
I also think that there is no need to withdraw from Hodlnaut frequently as you can swap your coins directly on the platform for free.
This allows you to go into stablecoins when Bitcoin has pumped or to buy back when Bitcoin has dumped. You can do this without having to pay any trading fees!
Another thing that I very important to me when it comes to cryptocurrency platforms, in general, is good customer service. From my experience so far, Hodlnaut has excellent customer service. The team is very responsive across all channels. You can reach out to them not only on their own platform but also on Twitter, Telegram, or even here on Publish0x.
My Final Words
I hope I could provide you with some interesting and useful information about the cryptocurrency lending platform Hodlnaut.
If you also like to check out Hodlnaut, you can get a sign-up bonus of $20 on top of your first deposit equivalent to $1,000 in one single transaction on any supported assets within one week. Bonus payouts are paid in the same asset deposited. You may make a test deposit of any amount. The deposit equivalent of $1,000 or more must be completed within one week of the first test deposit. To be eligible for the bonus you need to sign up using this invitation link.
I would also like to know what lending platform you are currently using to earn interest on your Bitcoin and Ethereum? It would be awesome if you would let me know in the comments.
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