Earn Bitcoin Interest: How Does Hodlnaut Interest Account Work?
The cryptocurrency landscape is evolving and growing as we speak. The HODL strategy, where people buy-and-hold their crypto, doesn’t quite satisfy anymore. Nowadays, people want to earn bitcoin interest at favorable rates. Initially, crypto investors would store their digital assets such as Bitcoin in cold storage for safekeeping in the long term. This has been a historically efficient strategy, but it lacks cash flow that many investors may need from time to time. That led people to look for different ways of accumulating more capital through their crypto assets. One of the best ways to do that is through an Interest Account.
Earn Bitcoin Interest with Hodlnaut Interest Account
What is a Hodlnaut Interest Account? It is a custodial account where you can earn favorable interest rates based on the amount you deposit in Hodlnaut. Individuals and corporates that have cryptocurrencies such as Bitcoin can sign up in our platform and begin depositing to earn bitcoin interest in no time. Any crypto assets that you deposited into the Interest Account will start earning interest at a compounded rate. At Hodlnaut, our effective annual interest rates are as follows:
|Annual Percentage Yield (APY)||6.2%||6.7%||8.3%||8.3%||8.3%|
How Does it Work and is it Safe?
We calculate how much has been earned on any given day by looking at your balance’s snapshot daily. The interest is accrued daily at 5 PM (GMT +8) and will be paid out in-kind at the end of every calendar month. If you feel that you no longer want to participate in the Interest Account to earn bitcoin interest, you can withdraw your initial deposit along with any interest earned anytime.
For example, if you deposit 1 BTC on July 1st, 2020, then at the end of the month, you’ll have an updated balance of 1.00509 BTC based on our 6% annual rate. This will repeat every month until you’ve decided to withdraw your funds from our platform. Assuming the interest rate and the deposited asset’s price remain constant, you will see your overall asset grow to 1.062 BTC (+6.2%) over 12 months.
Many people asked us how we managed to offer a competitive interest rate to users who deposit their crypto with us. We can do that by lending the crypto deposits to selected and rigorously vetted partners, mostly regulated entities in Singapore. We maintain good relationships with our partners and make sure they have good financial standing to mitigate risks.
To ensure safety, our platform runs on a secure cloud infrastructure on AWS with all traffic encrypted with SSL encryption. Besides using industry-standard algorithms for password hashing and procedures, we also encourage our users to enable 2FA (two-factor authentication).
Sign Up for a Hodlnaut Interest Account
In your account dashboard, navigate to the My Account tab to see the available deposit types (BTC, USDC, or USDT) and the amount deposited. In the Transfer Tab, you’ll have a unique wallet address to deposit to. Deposits will be credited after 6 network confirmations, and withdrawals are processed daily at 5 PM (GMT +8). You can also track your monthly interest rate, accumulated balance, and interest earned on the Statements tab. For more information, check out this Hodlnaut Account User Guide.
As a perk of being our valued customer and if you have successfully passed our KYC (Know-Your-Customer) process, you can join our Affiliate Program where you can invite a friend to join Hodlnaut and earn 10% of your friend’s interest.
Sign up for an Interest Account and earn bitcoin interest easily with Hodlnaut! If you have any questions in regards to Hodlnaut’s Interest Account, feel free to reach out to us at firstname.lastname@example.org, and we will be in touch right away.