Cryptocurrency is often condemned for its outrageous volatility. Double-digit positive spikes get converted into deep red candles and create fright in this market. Even experienced traders find it difficult to trade in a turbulent time. The volatility of an asset class is not bad as it acts as a market-making mechanism but extreme volatility signifies chaos and uncertainty. This market has a high tendency towards swings as there is no proper regulations and trading happens 24x7. In this year, Bitcoin reached its all-time high and then dropped more than 50% and eroded the wealth of many investors. The long-term outlook of many cryptocurrencies looks bright but it is important to absorb the extreme volatility factor if you want to hold for a large time period.
Some parts of my portfolio are dedicated to the long term and I’m not a very frequent trader. While sometimes I enter yield farming platforms to gain high yields, I keep some funds with custodial platforms to obtain a predictable return. I have been a user of BlockFi Interest Account for some years and got a decent return. BlockFi reduced interest rates drastically in recent times and I started looking for other platforms. I found HODLNAUT!
HODLNAUT was founded in the year 2019 by Juntao & Simon. The company is based in Singapore and ruled under Singapore Law. In January 2021, the platform received $106M in AUM due to its financial attestation with Crowe Singapore. Post that the platform has grown a lot and also launched a mobile app for ios. HODLNAUT is available globally except in restricted jurisdictions. You can also check Hodlnaut Pte Ltd's License status here. The name is derived from the crypto slang HODL (hold on for dear life). Earning interest on HODLNAUT is not risk-free as they mobilize the fund to get returns just like BlockFi or Celsius. I decided to try it out.
I downloaded the app from Apple App Store. The app has a nice dark UI. The entry screen displays assets of my portfolio. KYC is mandatory to use the app. I submitted KYC and the approval came after 2 working days. I deposited some BTC for testing purposes. My deposited fund arrived after some minutes and I also received a mail confirmation.
Holdnaut supports 6 assets at present - BTC, ETH, DAI, WBTC, USDC, USDT. The interest is paid daily and here you can check different interest levels for different deposit levels. HODLNAUT follows a tiered interest structure like other similar platforms. The interest rates should not be fixed and these get revised often to reflect the true market situations. They offer loans to institutions and that is their revenue source. Fiat currency deposit is not supported yet. It is important to note that deposits can be covered by Nexus Mutual Custody Cover if you want. Here is a guide for that.
My deposit started to earn interest. The interest is calculated daily but credited to the account every Monday. The interest is paid in the same currency deposited by a user but you can change the payout option. For example, you have deposited USDT and want an interest payout in Bitcoin. Yes, that is possible and you can change the payout option from their website. HODLNAUT sends interest statements weekly by mail. This is really a nice tool to track your investment. You can always download the interest statement manually.
HODLNAUT also has a token swap feature, The platform does not charge any fee as of now for the swaps. This feature is available on their website only. The platform looks good and it is currently offering the highest APY on deposits in comparison to other leading platforms. My test deposit worked for me and gave me a good impression regarding HODLNAUT. You can definitely try HODLNAUT to hodl your crypto assets.
You can sign up for HODLNAUT using this link. You will receive a US$20 sign-up bonus after making a deposit equivalent of US$1,000 in a single transaction on any supported assets within 1 week.
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