HODLNAUT - Is it worth it? A "Quick and Dirty" Review
"HODLNAUT IS IT WORTH IT" in blue and purple lettering, against a space background featuring an orange moon.

HODLNAUT - Is it worth it? A "Quick and Dirty" Review

By mekhiMKL | The Layperson's Crypto | 24 Oct 2021


 

Features, Interest Rates, and Accepted Cryptocurrencies and Tokens

Hodlnaut is a new platform that allows users to earn interest on deposited cryptocurrencies. It is similar to existing platforms like BlockFi or Celsius Network. Like Celsius, the interest compounds (and pays out to your account) weekly. However, at this time Hodlnaut seems to offer better interest rates, particularly for US customers. Interest rates at Celsius Network and BlockFi can be found by clicking on the respective links, for comparison. Celsius Network generally offers high rates for their "in-CEL" rewards, but only offer in-kind interest for US customers, likely because of legal peculiarities in the United States. 

Compared to Celsius, whose wide collection of accepted cryptocurrencies and tokens can be found again here, the current range of cryptocurrencies and tokens accepted at Hodlnaut is limited to BTC, WBTC, USDT, USDC, ETH, and DAI. This is comparable to BlockFi, though the inclusion of WBTC is an unexpected bonus. However, one feature that Hodlnaut offers which I have not previous seen among competitors, is to allow users the ability to choose between a range of interest payout options. This introduces some intriguing possibilities, and the ability to gain or limit exposure to various cryptocurrencies and tokens as forecasts change. It seems that one can change their preference, per currency deposited, as often as every week. 

 Interest Payout Preferences at Hodlnaut

 

Access, Communications, and Security 

Like BlockFi, you can manage your account online or through an apple store app. They do not seem to offer an android app at this time. 

They offer 2FA authentication through Google Authenticator. 

Their KYC (know your customer) protocol when opening an account is pretty streamlined compared to similar services. I experienced some of the typical frustrations, e.g. the app did not recognize my face as a face for several minutes - but this eventually resolved itself with a bit of trial and error. The time taken to process the KYC and approval the account was pretty fast. 

They correspond by email on a fairly regular, but not bothersome rate, compared to BlockFi, whose emails I find to be annoying. They send automated summaries once a week of interest earned and closing balance. You can see this basic information in your email but not the rate of interest. I like seeing this information, but more security minded individuals may not. It would be nice if they included the interest rate as well. I personally prefer their communication style to Celsius, which will only report your earnings, not your balance. 

 

Deposits and Withdrawals

Deposits are fast - they estimate 1-2 hours, but mine took half an hour. No deposit fees (which is fairly standard). 

Also no fixed deposit or withdrawal minimums.  However, they do charge a 0.00040000 BTC withdrawal fee (a whopping 24.36 per transaction at the time of the writing of this article). More details about their fees can be found here

However, until November 7th, 2021 23:59 (GMT +8) Hodlnaut is offering "free withdrawals". Their announcement states: “The withdrawal fee will be deducted automatically as usual and then credited to the user’s Hodlnaut Interest Account over the next two days after the campaign ends.

This promotion seems a little silly - the amount that gets rebated back is the essentially stuck in the account, so it's not really "free", but if you deposit more and need to withdraw again it's handy to have enough to make the withdrawal. 

 

Bells and Whistles

They offer free swaps, which for many users would eliminate the need to make more frequent withdrawals. 

Hodlnaut's Swap Interface

They also offer a 10% commission for you and a "free $20" for friends when they use your referral link to create an account. 

 

Verdict

Given BlockFi's recent legal difficulties in the United States, a  new interest account platform like Hodlnaut (which is based in Singapore, thankfully) is needed more than ever. Hodlnaut's novel features and great interest rates make it comparable or superior to the competition, even though it's selection of cryptocurrencies and tokens is currently limited. Their withdrawal fee is still quite high, and I hope in future they will consider adapting a "one-free-withdrawal-per" month, quarter, or year scheme, without the strings attached model of a "rebate" which gets credited to your account after the fact. 

I still think it's a better platform than BlockFi, and on par, if not superior to Celsius Network in some respects. If you think the same and would like to create an account, please use this referral link: hodlnaut.com/join/SsQgvcvyB 

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