When investors think about building wealth with cryptocurrency, buying and selling are usually the first ways that come to mind. But there’s another way to make money with your holdings without trading or selling the crypto you own. Singapore-based Hodlnaut has a platform that offers its investors a way to earn interest on their currency while they HODL their investment. That means you have the opportunity to build onto your portfolio without giving up your digital assets.
And starting July 21, 2021, Hodlnaut launched yet another avenue for crypto investors to add to their wealth without selling their assets. The program involves a preferred interest payout.
What is Preferred Interest Payout?
You know when you put your money in the bank, you earn a set interest amount in cash that compounds and grows over time. Hodlnaut gives you the opportunity to hold cryptocurrency like Bitcoin and earn interest on that currency, but you also get to choose the crypto you want as payment. For example, if you own Ethereum (ETH) and you want your interest paid in Bitcoin (BTC), you can do that. But if you want to have your interest paid in Ethereum, you can do that, too.
In fact, earning additional cryptocurrency in the asset form you already own is the default setting until you go into your account and change your asset class. The preferred interest payout offers earned interest in six cryptocurrencies: Bitcoin, Wrapped Bitcoin (WBTC), Dai (DAI), Ethereum, Tether (USDT) and USD Coin (USDC).
Using Cryptocurrency to Diversify
If you already invest in the traditional market, you know how important it is to diversify your portfolio to minimize your overall risk. The logic behind that investment technique is to protect your overall bottom line by holding investments across various sectors. That same logic is true in the digital market, making the preferred interest payout program even more appealing. You could effectively round out your portfolio simply by earning interest in a different cryptocurrency than what you own.
The Future of Investing
As cryptocurrency’s popularity continues to grow, companies will develop ways to offer investors more for their investment efforts. Earning interest is one way to earn passive income on your assets without trading what you already hold. And now you can HODL the cryptocurrencies of your choice and add to your bottom line as you explore new digital possibilities and meet your investment goals.