First things first – I don’t really enjoy being a party-pooper but some of the chats I’ve had seemed to indicate a worrying lack of the necessary knowledge to navigate crypto safely. Here goes my reminder (copy-pasta from Hodlnaut website) –
The Monetary Authority of Singapore (MAS) requires Hodlnaut to provide this risk warning to you as a customer of a digital payment token (DPT) service provider. Before you pay your Digital Payment Token (“DPT”) service provider (Hodlnaut Pte. Ltd. or the Company) any money or DPT, you should be aware of the following.
- Please note that you may not be able to recover all the DPTs you paid to your DPT service provider if the Company’s business fails.
- You should not transact in the DPT if you are not familiar with this DPT. Transacting in DPTs may not be suitable for you if you are not familiar with the technology that DPT services are provided.
- You should be aware that the value of DPTs may fluctuate greatly. You should transact DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
To recap, everything I’m writing about Hodlnaut here on my blog is a result of my personal experience as an early-adopter (November 2020) with the Singapore-based platform.
Alright then, with that is out of the way – I just wanted to provide a little update on what I have been doing with Hodlnaut lately and some of their promotions.
Once in a while, I’ll put up little updates of my Hodlnaut account to illustrate how much funds I’m holding with them.
Skin-in-the-game, as always.
If anything happens, that’s my hard-earned money on the line too.
Additional Security for Hodlnaut’s Funds (iTrust Nexus Mutual)
To add a little more protection, I tried out the in-built integration for Nexus Mutual custody cover via iTrust.
Yes, it is possible to buy directly from Nexus Mutual, but I’m just too lazy to consider the impact of Ethereum’s gas fees etc.
I chose a cover amount of 10 ETH (pretty close to my Hodlnaut account value) for 30 days. This protects against two specific scenarios –
- Hodlnaut gets hacked and when you lose more than 10% of your funds; or
- Withdrawals from Hodlnaut are halted for more than 90 days.
The process is quick and hassle-free.
The corresponding fee is deducted in ETH and an email arrives, asking me to create my iTrust account. You can see that my custody cover ends on the 29th October.
Occasionally, I would move funds in and out of Hodlnaut and use them like a mini-exchange for major pairs. As mentioned previously, I feel that their token-swap rate is actually pretty competitive.
I guess this little insurance comes in pretty handy, I guess.
What Else Besides Hodl-ing?
Perhaps I can illustrate one use-case with an example: Bob is a Bitcoin hodl-er and he deposits one BTC (assume $50,000 price) with Hodlnaut and over the course of 1 year, earns $3730 (7.46% APY) in interest.
Feeling adventurous after reading about making “passive income” from covered calls by numerous bloggers, he decides to get in on the action too.
He keeps his one BTC with Hodlnaut, and tries out decentralized finance (DeFi) with his earned interest.
On the Hodlnaut platform, he performs a token-swap from BTC to Wrapped Bitcoin (WBTC) using his interest earned, after which he withdraws the WBTC into his MetaMask wallet.
Bob navigates to DeFi projects and deposits his WBTC to generate higher % yield by running an automated WBTC covered-call strategy. The best of both worlds – principal amount earning 7.2% APR whereas earned interest can be risked for 50% APR (by sacrificing upside).
So, what is your unique way of using Hodlnaut?
[Promo 1] Hodlnaut’s Upsized User Referral Program (Sep 20 to Oct 22)
Quickly touching on two Hodlnaut promotions that’s running between now and November.
Let’s go! Basically, how it works is simple –
- Tier 1: Earn a one-time bonus of 40 USDC for the first [active] user you refer.
- Tier 2: For every additional [active] user that is referred after the first user, the referrer will get 20 USDC per new user.
For more details plus T&Cs on how to get some extra dollars by referring your family and friends, do check out their official blog post.
[Promo 2] One Free Withdrawal (1 Oct to 7 Nov)
I guess the Hodlnaut team heard what we asked for and the free withdrawal campaign speaks for itself.
One really important point to note is that “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.”
More details on the free 1x withdrawal campaign here.
Hopefully, the amazing response to the campaign will result in a permanent scheme for free withdrawals, be it monthly or quarterly (seasonal).
Learn More About Hodlnaut
Keen to learn more? I wrote more two earlier blog posts on Hodlnaut which may be helpful to you.
The first one was a Hodlnaut review and the second one was how I used Hodlnaut to implement a pseudo index-investing crypto portfolio.
- Hodlnaut Review – Easy 12% Interest On Stablecoins For My $24,000 Account
- Low-Maintenance “Passive” Crypto Portfolio (BTC/ETH/USD) With 8.8% APR Via Hodlnaut
At no extra cost to you, my Hodlnaut personalized referral link would give your crypto portfolio a head-start when you decide to start an account with them! Free feel to run through their demo account (my favourite feature which convinced me to try it) before signing up!
You will receive a US$20 signup bonus when you deposit a minimum of US$1,000 worth of supported crypto assets in a single transaction as your first deposit or within 1 week from the initial deposit on any of their assets such as BTC, WBTC, ETH, DAI, USDC and USDT.
Guess this $20 will help to offset any blockchain transaction fees you incur as a result of getting your assets into the Hodlnaut platform, if you choose to do so.
Note : All crypto-related investments are subjected to higher levels of risks and users are responsible for their own decisions
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Hello! I’m Kevin, Turtle Investor
At the age of 30, I am the Personal Finance Blogger who laid claim to a negative net worth of minus $25,755 – and decided to turn things around.
- Seven years later in 2019, I hit CPF Full Retirement Sum (FRS) of $176,000 without making a single cent of CPF top-up.
- In eight years, I added $453,000 to my net worth (excluding the value of my HDB apartment).
- I made over $12,000 in alternative income in 2020 (and $20,000 in one month) in addition to my full-time job.
I am married to a lovely wife and that means dual income with no kids. In my free time, I chase miles so that we can fly in business class. My hobby is making pocket change off this blog and sharing everything I know with you!