Hodl Smarter Not Longer With Crypto Interest Bearing Accounts

First published
February 4, 2022
Last updated
June 21, 2022

When you invest in digital assets like cryptocurrencies, your primary goal is to grow your wealth! However, with new cryptocurrencies entering the market every day, it can be quite overwhelming to pick one that is reliable and promising. 

And that’s not it; you also need to think about ways in which you can grow your cryptocurrencies to the point that it becomes a source of passive income. The majority of cryptocurrency holders purchase a crypto coin and wait for its value to appreciate so as to make profits. But there are other ways in which you can grow your crypto coins while you “Hodl” them. 

Ahead, we discuss the proven strategies that you can use to grow your crypto assets besides just holding them for a long period of time. Let’s take a look!

What Does HODLing Mean?

HODL” is a slang used in the crypt space by enthusiasts to describe an investment strategy. It is a very simple strategy! A person buys a cryptocurrency of their choice and then holds it with the hope that its value will appreciate over time. An investor that uses this strategy actively is known as a “HODLER.”

It is no news that the value of several crypto assets like Bitcoin and Ethereum has appreciated a lot over the years. Thus, the Hodlers have profited a lot just because they held on to their crypto assets and did not sell them. Having said that, holding on to your crypto assets becomes even easier when you keep them in a secure exchange, thus lowering your chances of losing your funds. But is hodling risky in any way? Let’s learn more about it. 

Does Hodling Involve Any Risks?

Every investment strategy comes with its fair share of risk, and so is the case with Hodling. In fact, a majority of crypto tokens in the market are outright scams! Therefore, if you are using the HODL technique with such fake coins, then you will be immensely disappointed. Nevertheless, there are also non-scam crypto coins out there that simply aren’t appreciating in value, and so investing in such coins will not help you benefit from hodling. Plus, there are always cryptocurrencies that lose momentum or become valueless over time. 

This could be due to various reasons, such as the developers not being keen on the project, the emergence of better projects, or the community using the tokens moving somewhere else. These instances are fairly common than you may think. The reason is, only a small handful of currencies do well in the crypto market. So, how do you make the hodl strategy work?

Knowing What to HODL is The key!

HODL is The Key

If you are a person with some experience in investment, then you already know the importance of diversification. Diversification is indeed necessary for getting consistent returns, and this holds true for cryptocurrencies as well. As you invest in multiple crypto assets with different levels of risks associated, you also immunize your portfolio towards the volatile market with the help of diversification. 

Moreover, you end up maximizing your returns while minimizing the risks. Diversification gives you a chance to rebalance your portfolio and achieve your target returns. However, investors don’t often understand how to apply diversification to crypto assets. Here’s how you can do it. 

How to Diversify Your Crypto Portfolio?

Simply put, diversification means buying multiple crypto coins to reduce the risk such that if one coin dips, you will not lose all your investments suddenly. If you want to be a smart hodler, then it’s wise not to put all your money in one coin. So do your own research before investing in a coin and pick multiple coins that you can buy and hold. 

Moreover, besides diversification, you can also earn interest on the individual coins that you hold. Here’s how it works!

Earning Interest on Your Cryptocurrencies

Once you buy a coin, you can use the HODL strategy to wait for the value of the coin to appreciate. You can even diversify your crypto assets to be a smart hodler. But did you know that you can earn interest on the coins that are sitting idle in your wallet? That’s right! Platforms like Hodlnaut allow you to earn up to 7.25% APY on your crypto assets.

Hodlnaut offers stable and high interest rates that enable you to earn more without selling your coins. Earn up to 4.08% APY on your BTC and up to 7.25% APY on stablecoins. 

Choose the Cryptocurrency in Which You Want to Earn Interest

Besides offering a high interest rate on six supported assets: BTC, ETH, DAI, USDC, and USDT, Hodlnaut also allows you to earn interest in the crypto of your choice. Typically, when you hold your Bitcoin with a crypto interest-earning platform, you earn interest in Bitcoin itself. But with Hodlnaut, if you deposit BTC, you can earn interest in either BTC or ETH, DAI, USDC, USDT, or WBTC.

The freedom to choose the coin in which you will earn interest also enables you to make the most of your crypto assets, thus making you a smart hodler.

Apart from the preferred interest payout option, Hodlnaut also has a Token Swap feature. This feature helps users in swapping the tokens within the hodlnaut platform seamlessly without ever leaving the platform. Thus, users don’t have to pay the costs associated with swapping tokens in two steps.

Hodl Smarter with Hodlnaut

When investing in crypto, you can use strategies such as hodling, diversification, and depositing assets with a crypto interest-earning platform to make the most of your cryptocurrencies. It is crucial to invest in coins that are reliable and then use the strategies mentioned above to grow your cryptocurrencies.

With a Hodlnaut Crypto Interest Account, you can simply deposit your assets and earn up to 7.25% APY on six coins, namely, BTC, ETH, DAI, USDC, WBTC, and USDT. Earn interest either in kind or in the crypto of your choice with the preferred interest payout feature. What’s more? You can also swap tokens right from the hodlnaut platform. Plus, you can avail of one free withdrawal per month, thus giving you complete control over your crypto assets. 
Ready to earn returns on your cryptocurrency? Sign-up with Hodlnaut today to get started for free!

Disclaimer: By using Hodlnaut, users expressly acknowledge and agree to the Terms of Use listed on our website at www.hodlnaut.com. This includes the relevant risk warnings applicable to you as a user of Hodlnaut's services, prior to/when carrying out Digital Payment Token (DPT) transactions. This article is for informational purposes only, and is not an offer nor a solicitation to invest in DPT, securities, funds, partnership interests or other investments or funding or purchasing loans. It is the user's sole responsibility to conduct due diligence and research extensively into each DPT and platform, and understand that the volatility and unpredictability of the price of DPT may result in significant loss over a short period of time. No information on Hodlnaut should be considered to be business, legal, financial or tax advice regarding the use of Hodlnaut. Users should consult their own legal, financial, tax or other professional advisors before using Hodlnaut. Please refer to our website at https://www.hodlnaut.com/tos for the full Terms of Use.

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