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As more people steer away from traditional financial banks due to their global decrease in interest rates and the incoming inflation, cryptocurrency interest platforms have emerged as a worthy alternative. Furthermore, the growing attention that the crypto world has reached significant highs in 2021 which is heartening. This led to an increasing variety of financial products in the crypto world, and that includes crypto interest platforms. Learn more about crypto interest accounts and how you can passively earn Bitcoin in this article!
What is Cryptocurrency Lending?
Before delving into the concept of crypto interest account, you would need to first understand crypto lending. Basically, crypto lending is the process of lending out your crypto assets to borrowers by depositing to crypto lending platforms. By depositing with these platforms, you will earn an attractive interest on your crypto. Crypto lending is increasingly popular amongst crypto enthusiasts as they believe in the long-term value of crypto and would like to earn passive income while hodling. Investors that are looking for additional profit avenues on top of the usual off-price increments can turn to crypto lending during bearish or sideways markets.
Key Advantages of Crypto Lending
✓ The process to approve loans is faster. As long as you have crypto to put up as collateral and a government-issued identity card, you are most likely eligible for loans.
✓ The loans offered are customizable. The borrower can determine the loan duration, loan-to-value ratio (LTV), and repayment terms etc.
✓ Fees involved in loans are lesser than traditional banks. In crypto lending, there is normally a one-time fee whereas traditional banks still take currency exchange rates into consideration.
How does a Crypto Interest Account Work?
The crypto interest accounts allow you to earn interest based on the amount of crypto you deposit with them. The platform that you decide on would automatically compound the interest earned according to its stated rates.
Crypto interest platforms act as a third party and lend your deposited crypto to vetted institutions or retail investors. To protect lenders and their deposited assets, crypto lending platforms require borrowers to provide crypto as collateral and some may choose to only lend to corporate entities with good credit scores.
Hodlnaut: Earn up to 10.5% Interest APY on your Bitcoin and Crypto
A crypto interest platform that has been getting more attention recently is Hodlnaut. Their interest rates are deemed highly attractive as compared to other platforms in the market. Users can earn interest of up to 10.5% APY on their crypto with no lock-in periods or minimum deposits. Their preferred interest function allows you to choose the cryptocurrency that you would like your interest to be paid in. Currently Hodlnaut supports 6 assets, namely Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Tether (USDT), DAI and Wrapped Bitcoin (WBTC).
Another noteworthy feature that Hodlnaut offers is Token Swap. It allows investors to seamlessly swap between the different assets without leaving the platform. This helps investors to rebalance their portfolio without incurring fees, making the whole procedure convenient. Do note that the Token Swap feature is available to all users except users from Singapore.
Interest Rates Offered
Check out the list of cryptocurrencies that Hodlnaut supports along with their exciting interest rates:
Higher interest rates are offered to those who deposit large amounts of crypto with Hodlnaut’s VIP Fixed-Term Loan. To learn more about this, please email them at rm@hodlnaut.com.
Deposit and Withdrawal Fees
Hodlnaut currently does not charge users any fees for depositing with them. The withdrawal fees are listed in the table below, and are subjected to blockchain conditions:
Frequently Asked Questions (FAQ)
Is Hodlnaut Regulated?
Hodlnaut is recognized and certified by Singapore FinTech Association and Infocomm Media Development Authority (IMDA). All requirements have been met for the application of the Digital Payment Token License and Hodlnaut is actively pursuing the license from the Monetary Authority of Singapore (MAS).
As part of the efforts to be transparent with its users, Hodlnaut underwent financial attestations by Crowe Singapore. The latest attestation was completed in April 2021, and it was officially verified that Hodlnaut has US$234M Assets under Management (AUM).
Is Hodlnaut Secure?
Know-Your-Customer (KYC) verification process is compulsory for every user and two-factor authentication (2FA) must be enabled for account transactions. Amazon Web Services (AWS) cloud infrastructure and SSL encryption are used to protect Hodlnaut’s platform. Hodlnaut also stores digital assets with Fireblocks, a leading enterprise known for its multi-layer security technology. To best protect users’ assets, no funds are stored in hot wallets and less than 2% of Hodlnaut’s AUM are stored on Fireblocks wallet.
How can I Sign Up?
Simply head over to Hodlnaut’s sign-up page and kick-start your journey with them. You would have to go through their KYC verification process first before accessing their features.
In Conclusion
Crypto interest accounts are all the hype now, given the potential interest that you can earn with them. Earning passive income cannot get any easier with several crypto lending platforms out there. Hodlnaut is a beginner-friendly platform that has a dedicated support team to assist users with any questions. With their offered interest rates of 10.5% APY, it is no surprise that investors are moving to this promising platform eagerly.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.