Hodlnaut Singapore Review: Is this a legit Cryptocurrency Wallet?
Coinbase Singapore Review: Our Opinion
Hodlnaut is a platform that offers interest rates on held crypto assets. However, Hodlnaut supports very few cryptocurrencies (just 7) and offers lower interest rates when compared to competitors like Nexo. Also, the platform’s lending services aren’t regulated. So for users who want a regulated lending service, Hodlnaut isn’t the best option. But Hodlnaut excels with regards to security as the platform has never been hacked. This gives the service a high trust score.
Welcome to the ultimate Hodlnaut review.
Hodlnaut is a cryptocurrency platform based in Singapore that enables individual investors to have access to financial services where they can earn interest on their crypto assets. The platform is regulated under the Payment Services Act (PS Act) by Singapore law. It hosts over 10,000 users and has $350m in held crypto assets.
Unlike major cryptocurrency solutions, Hodlnaut only supports 7 cryptocurrencies; DAI, ETH, BTC, USDC, WBTC, and USDT.
Our Hodlnaut review takes into consideration user reviews, expert analysis of the platform, competitors analysis, and first-hand experience.
An Overview of Hodlnaut
Founded by Bitcoin minimalists Simon Lee and Juntao Zhu in April 2019, Hodlnaut is based in Singapore. The platform provides financial services that allow users to earn yield on their crypto. Its business model involves earning interest on held assets by lending crypto to financial institutions and decentralized protocols.
Key Features of Hodlnaut
Hodlnaut users can swap any of the supported cryptocurrencies on the platform at zero fees.
Token Swap is the exchange of one crypto token to another crypto token from one blockchain to another blockchain.
Hodlnaut users can instantly swap tokens from the Hodlnaut website or the mobile application. Users can also earn yield on swapped tokens from the same day the swap order is executed.
Due to the volatility of the crypto market, Hodlnaut protects users’ assets and increases the success rate of token swaps using their Token Order Execution feature. This feature instantly fills the token swap order of users.
To swap tokens on Hodlnaut, do the following:
- Log in to your account
- Select the token you wish to swap
- Review the quote.
- Place your order.
Once this is done, your token swap will be initiated.
Fixed Term Deposit
Hodlnaut users can earn interest on their crypto assets through the Hodlnaut Fixed Term Deposit feature. Users can choose to lock in any of the 7 supported assets from 28 to 360 days. The longer the lock-in the higher the interest rate applied and interest earned. The principal amount and lock-in period are determined by the user. There is also no minimum deposit required.
It is important to note that interest rates can be affected by market conditions. However, Hodlnaut honours the rate that was applicable at the time the assets were locked in. This means that once a user locks in their fixed deposit, the rate used will be the current rate at the time of the lock-in.
The interest earned with Hodlnaut’s Fixed Term Deposit is based on APR. This means that it is calculated based on the principal of the term deposit. Hodlnaut does not state whether the interest earned from a fixed-term deposit is taxable.
Users begin to earn yield immediately after depositing cryptocurrencies into their Hodlnaut account. At 5 pm every day Hodlnaut calculates how much interest has been earned for the day. At the end of the week, the total sum of interest calculated for the week will be compounded. The interest earned is credited to each user’s account at 5 pm (GMT +8) every Monday.
Interest earned is paid in kind. This means it is automatically paid in the cryptocurrency that the user deposited in Hodlnaut. Users can however change their preferred interest payout settings in the “User Settings”. The user can choose to start earning interest in another cryptocurrency.
Hodlnaut has an interest calculator tool that helps users calculate the estimated amount of interest earned for a particular crypto asset within a certain time frame.
To start earning yield with Hodlnaut’s Fixed Term Deposit, all you need to do is:
- Deposit any of the supported cryptocurrencies in your Hodlnaut crypto interest account.
- Create a fixed-term deposit by selecting the crypto asset, principal amount, and deposit term.
- Hold the assets till the maturity date.
- Once the lock-in period is over, interest will be paid out to your wallet.
Cryptocurrencies Available on Hodlnaut
Hodlnaut only accepts deposits in BTC, USDC, ETH, USDT, WBTC, PAXG, and DAI.
Hodlnaut is unable to process fiat deposits, only crypto deposits are accepted. To be able to fund your wallet, you need to purchase your preferred choice of crypto from a crypto exchange, then transfer the crypto asset to your Hodlnaut wallet. There is also no minimum deposit amount for funding for your account.
Hodlnaut does not charge you any fees for opening or maintaining your account. They also do not charge fees for crypto interest or deposits. But you would have to bear the gas and withdrawal fee when withdrawing if applicable.
Hodlnaut also offers only 1 free withdrawal per month after 30 days of your initial deposit. Once that is used up the following fees apply:
- Bitcoin: transaction fee of 0.0004 BTC
- Ethereum: transaction fee of 0.0036ETH
- Tether: transaction fee of 10 USDT
- Wrapped Bitcoin: transaction fee of 0.0004WBTC
- USD Coin (BEP-20): transaction fee of 1 USDC
- DAI: transaction fee of 10 DAI
- USD Coin: (ERC-20) transaction fee of 10 USDC
The withdrawal fees above are regularly adjusted based on blockchain conditions. Hodlnaut also does not charge swap fees.
Hodlnaut does not support fiat currencies as you cannot buy or sell cryptocurrency on the platform. This means the only payment method available is cryptocurrency deposits.
There are 2 ways to do so; first, you can copy your Hodlnaut crypto address and paste it into the wallet or exchange you’re sending the funds from or you can copy the QR code that holds your address using the exchange you’re transferring from to initiate the transaction. Hodlnaut does not have a minimum deposit amount.
To deposit Bitcoin, you have to use the Bitcoin Network. For ETH, USDT, WBTC, and DAI you have to use the Ethereum (ERC20) Network. If you send crypto using the wrong network it won’t be credited to your account and the coins will be lost.
Hodlnaut requires that you verify your account before being able to deposit. You must also enable Two-Factor Authentication to use the service as well.
Hodlnaut is certified by Singapore Fintech Association and has an in-principle approval (IPA) for a major payment institution license in Singapore from the Monetary Authority of Singapore. This is under the Payment Service Act (PS Act) for Hodlnaut’s Token Swap feature.
Hodlnaut also partners with Fireblocks to give users next-generation private key security (MPC-CMP) and hardware isolation technology (SGX). This provides multi-layer security that reduces the vulnerability of digital assets transfers from human error, cyber attacks, and internal collusion. It also ensures that the cryptocurrencies of users are safe in transit.
Also, sensitive information such as Personally Identifiable Information (PII) is encrypted using strong industry-standard algorithms for procedures and password hashing.
Hodlnaut does not use a hot wallet. This is because hot wallets are more susceptible to online attacks. The platform uses Fireblocks’ multi-party computation wallet infrastructure. This gives every user a unique address generated by Fireblocks. Cryptocurrencies deposited to the users’ unique addresses are received through Fireblock’s secure wallet infrastructure. When the asset gets to Hodlnaut, it will either be transferred to Hodlnaut’s self-custody cold wallet or lent to borrowers.
In terms of the security of the platform, Hodlnaut runs on secure cloud infrastructure in AWS and all traffic is encrypted with SSL encryption. This is more secure than the legacy encryption methods that were previously supported by the platform. All servers and services are also constantly monitored and frequent security updates are conducted to ensure that the security features remain up to date. Internal facing applications all have separate access controls and are not exposed to the public internet.
Also, to foster the security of the platform, Hodlnaut requires Two-factor Authentication for users to log in or to make crypto withdrawals. Captcha security measures and rate-limiting are also required for account activities like log-in attempts.
Hodlnaut’s engineers get a real-time alert for any issue that may affect the security of the platform. Its Intrusion Detection security tool also enables the engineers to easily detect any unauthorized access to Hodlnaut’s data and system. Routine Vulnerability Assessment and Vulnerability Testing (VAPT) are often conducted to strengthen the security of the platform.
Also, All domains are protected against man-in-the-middle attacks using DNSSEC and all server connections require multiple-factor authentication.
Users can also secure their assets by enabling the Withdrawal Whitelisting feature. This restricts crypto withdrawals from the user’s Hodlnaut wallets to only a list of known addresses. Withdrawal to addresses that are not listed on the Withdrawal list will not be approved. To add a new address to your withdrawal list, you will have to wait for 48 hours for Hodlnaut to approve the whitelist.
This feature comes in handy especially when your wallet has been compromised. The 48 hours of wait time for the approval of a new address will prevent hackers from moving funds from your wallet. It also gives you enough time to gain back control of your account.
To enable the Withdrawal Whitelist feature using your Web browser, do the following:
- Log in to your Hodlnaut account and scroll to the top right corner where your name is displayed.
- Click on your name. A drop-down list will be displayed.
- Click on User Settings.
- Scroll to the Withdrawal Whitelist Feature.
- A 6-digit code will be sent to your Google Authenticator. Submit the code to enable the whitelisting feature.
- Once the code is added, you will be able to add the addresses to your whitelist.
- Scroll to the “Deposit/Withdrawal” tab.
- Click on “Show Saved Addresses” and a table will be displayed.
- To add new addresses to your whitelist, click on the “+” button.
Staking rewards are rewards paid to crypto owners for locking up their crypto assets for a certain time frame. Hodlnaut users can stake any of the 7 supported cryptocurrencies on the platform. The APY earned on the staked assets is dependent on the tier and the amount deposited.
Hodlnaut pays as high as 7.25% APY to crypto owners who stake their assets on the platform. The interest rates are often reviewed every month, this is to ensure that users’ earnings are maximized.
Users who stake BTC can earn an APY as high as 4.08%. While users who stake USDC can earn up to 7.25% APY.
Information on the Hodlnaut website shows that users can stake as little as $1 and start earning. Interests are paid out every Monday to users’ Hodlnaut wallets.
Opening an Account
You will have the option of opening an individual or corporate account. If you’re making an account for yourself choose the individual option.
Hodlnaut will require that you enter your first and last name, your email address, and a unique password. Next, you’ll need to complete the KYC process and set two-factor authentication. Hodlnaut will not allow you to deposit or earn interests without verification.
Here are the details all accounts are required to provide:
- Personal Information
- Place and date of birth
- Full Name
- Local mobile number
- Photo of your passport
- Passport and Identity Verification
- Live video or photo
- Employment Information
- Employer name
- Approximate annual income
- Occupation and industry
- Residential Address
- Residential address (full street level)
- Recent address proof (utility bill, bank statements)
If you need help during the KYC process Hodlnaut’s customer support is very responsive to let you know why your verification was denied.
Users can contact the Hodlnaut support team through tickets sent via email. Information on their website shows that the support team responds within 24 hours on weekdays. But some users have complained of delayed responses.
The support team can also be contacted via live chat. And the response is often within a few minutes during business hours if there is an agent online. Hodlnaut’s customers can also contact the admin via their official Telegram Chat.
Hodlnaut has a 4.8 over 5-star rating in TrustPilot with 85% of users voting the platform as excellent and under 1% voting the platform as poor. Most users with positive reviews commend the operational experience of the platform. The negative complaints have to do with low-interest rates in comparison with their competitors and their poor coin choices.
Does Hodlnaut offer Education?
Yes, Hodlnaut offers education through the Hodlnaut Academy. The academy covers how-to guides, product updates, industry insights, educational articles, etc. Some popular topics on the platform include “What is BNB Chain (BEP-20)?”, “Hardware Mining vs Cloud Mining: Which is Better for You?” etc.
Is Hodlnaut Right for You?
Hodlnaut is best for crypto investors looking to earn interest by holding their digital assets.
Hodlnaut is a financial services provider that allows users to earn interest on 7 of its supported cryptocurrencies. The platform, however, does not match its top competitors as it does not support buying and selling of cryptocurrencies, offers low-interest rates, and very limited crypto options. It’s also a bit questionable that the platform is only regulated for swapping coins when its major service is crypto lending. That said, Hodlnaut does what it promises – offers interest on supported cryptocurrencies.
If you want to know more about on HodlnautCompetitors and other crypto platforms, you can check out our list of the Best Crypto Platforms Singapore.
Most frequent questions and answers
Yes, Hodlnaut is based and regulated in Singapore.
Hodlnaut is available in nearly all nations of the world including Singapore.
Yes, Hodlnaut has an iOS and Google Play Store app.
At the moment, MAS only regulates Hodlnaut’s DPT Token Swap feature, not their DPT lending and borrowing services.
Yes, Hodlnaut is under regulation for its Token Swap feature. The platform has also never been hacked and stores funds with Fireblocks a multi-party computation wallet infrastructure.
Hodlnaut allows withdrawals through your address. To withdraw, click the coin that you want to transfer out, copy and paste the recipient address, and send your crypto to it.
No, Hodlnaut is a centralized finance solution.
Hodlnaut allows you to earn up to 7.25% APY with a crypto interest account.
Transfer your crypto to Hodlnaut and you’ll begin receiving crypto instantly. The interest is calculated daily and it’s credited every Monday to your account.
No, Hodlnaut does not allow you to buy or sell crypto using fiat currencies. But their token swap feature enables you to buy and sell between all cryptocurrency pairs supported by the platform.
Yes, Hodlnaut pays compounded interest rates.
Hodlnaut is located in Singapore.
Hodlnaut interest rates differ based on the cryptocurrency held. However, you can earn up to 7.25% on UDSC, for example.
Hodlnaut lends out the digital assets (user funds) they receive to financial institutions and decentralized protocols that pay interest rates. The exchange sets its interest rates to adjust as the market conditions shift.
No, Nexo offers more digital asset options for earning interest, some higher interest rates overall, custodian insurance of up to 375 million USD and an internal crypto exchange for users in some countries.
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