In this guide, we will examine the security of Haru Invest, a digital asset management platform enabling investors to earn interest on their crypto. We will explore the platform’s features, trading algorithm, and the safety measures it takes to protect its users.
What is Haru Invest?
Founded in South Korea in 2019, Haru Invest is now headquartered in Singapore and led by CEO Hugo Hyungsoo Lee. Since its inception, the platform has handled over $2.27 billion in total transaction volume from over 80,000 users across 140 countries. In addition, it has successfully distributed earnings more than 9.8 million times and maintained a robust security record with no breaches, missed earnings payouts, or unsuccessful withdrawals.
Haru Invest’s core features
- Haru Earn: With these programs, you can earn interest on your locked coins. Users can choose from Haru Earn Plus and Haru Earn Explore. The primary distinction lies in the earn rates. Earn Plus provides up to 12% fixed APY for investors seeking consistent returns. In contrast, Earn Explore features performance-based earn rates that target 25% APY and fluctuate every two weeks. Another significant difference is the lockup period. For Earn Plus, investors can select lockup durations ranging from 15 to 365 days, whereas Earn Explore offers 1- and 3-month lockup options;
- Haru Wallet: Like with Haru Earn Plus and Explore, with Haru Wallet, you can earn interest (maximum fixed rate of up to 6%) on your tokens. However, there are no withdrawal penalties or lockup periods;
- Haru Switch: Switch is a community-driven pool where you can contribute your assets and earn from swap transactions;
- Haru Freeze: With Haru Freeze, investors can sell their locked assets and withdraw early in case of urgent needs.
As of April 2023, Haru Invest (Earn Plus) supports five cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC), and Ripple (XRP).
How does Haru Invest manage your assets?
Haru Invest generates returns through an algorithmic trading model that capitalizes on distinctive inefficiencies in the crypto market and price discrepancies across exchanges. The platform routinely evaluates asset management strategies from various perspectives, taking into account both profits and risks while avoiding directional trading methods that could subject members to the volatility inherent in the cryptocurrency market.
Their three core algorithmic trading strategies:
- Arbitrage trading: Capitalizes on the price differences between cryptocurrency exchanges;
- Market neutral strategy: Based on the price stability mechanisms present in crypto futures exchanges;
- Spread trading: Concentrates on the volatility of BTC/ETH futures contracts.
What are the benefits of utilizing an algorithmic trading model for asset management?
According to Haru Invest, the algorithmic trading model offers numerous benefits over borrowing and lending models, including:
- High BTC and ETH earn rates: Crypto holders often prefer to lend their BTC and ETH, while stablecoins tend to have a higher demand for borrowing, resulting in lower BTC and ETH earn rates compared to stablecoin rates. With algorithmic trading, however, high earning rates for BTC and ETH are totally possible;
- Unlimited transactions: Disbursing earnings through a borrowing and lending system can be challenging when loan demand is low. In an algorithmic trading framework, there are no restrictions on payouts per user, as it optimizes the algorithmic strategy to generate profits regardless of withdrawal or deposit volume;
- Reduced risk of bank runs: Borrowing and lending systems enable transactions without necessitating a lockup period. Conversely, in an algorithmic trading structure, assets are managed for a predetermined duration once deposited, ensuring financial stability, even when numerous withdrawals occur after the fixed term;
- Growth during bear markets: Haru Invest claims it has a track record of delivering 100% of the promised returns to customers with fixed-rate products, even amid the harshest market declines.
Asset management team
Haru Invest manages 100% of users’ deposits with their internal trading team and global asset management partners. They maintain two in-house trading teams and collaborate with over ten global asset management partners who employ a low-risk portfolio strategy, distributing assets across various categories. They do not outsource your holdings to other CeFi or Defi platforms.
Conditions for partners:
- Stringent screening process: Each partner must possess a robust corporate structure, a low MDD (maximum drawdown) record, stable operations for at least 18 months, and exceptional team performance outcomes;
- Proven strategic resilience: Partners are required to showcase their capability to handle crises and generate consistent profits, even amidst BTC and ETH price fluctuations;
- Gradual scaling of operational assets: Haru partners must undergo regular, comprehensive reviews, during which they are expected to demonstrate their strategic stability by managing a test asset.
How safe are your assets against security breaches?
Haru Invest collaborates with BitGo, a leading secure crypto wallet solution provider, to manage all user deposits. Every deposit or withdrawal undergoes several security protocols, including BitGo cold wallets, before being transferred to Haru Invest’s algorithmic trading system.
Unlike decentralized finance (DeFi) services, which rely heavily on potentially vulnerable smart contracts susceptible to various hacking methods and are slow to counter emerging hacking techniques, Haru Invest operates as a centralized finance (CeFi) platform, inherently resistant to successful hacking attempts targeting DeFi services.
Finally, Haru Invest distributes users’ assets evenly across the top 10 global exchanges for algorithmic trading, ensuring liquidity and minimizing the impact in the event of exchange withdrawals being halted or bankruptcy.
Is Haru Invest safe?
First of all, Haru Invest is a verified company on Trustpilot.com with an ‘Excellent’ rating and more than 400 reviews.
Additionally, Haru Invest has implemented various security measures to protect its users’ investments and personal information, including:
- KYC/AML: To ensure the security of your assets, Haru Invest collaborates with a reputable third party that adheres to anti-money laundering (AML) and know-your-customer (KYC) regulations;
- 2FA authentication: Haru Invest provides 2-factor authentication options, encompassing email verification, biometric identification, a unique PIN code, and one-time passwords (OTP) through Google Authentication or Authy;
- Alerts for suspicious activities: Haru Invest proactively informs users of any suspicious login attempts, and depending on the severity, appropriate preventive measures are implemented;
- BitGo partnership: Haru collaborates with BitGo, a digital asset custody platform utilized by over 700 institutions across 50 countries, to safeguard your assets;
- Automated protocol: Every transaction undergoes multiple automated stages, involving transfers to the BitGo hot wallet and integration with Haru’s internal algorithmic trading system. By adhering to complex internal regulations, Haru ensures that only you can access your account;
- Cold wallet storage: To further safeguard clients’ digital assets, Haru Invest employs cold wallet storage, keeping the majority of funds offline and away from potential cyber threats.
- Money Service Business (MSB) license for US operations: As an official MSB across all 50 US states, Haru Invest is approved to carry out operations as a money transmitter service, including handling digital assets such as cryptocurrencies;
- Virtual Asset Service Provider (VASP) authorization for EU operations: With VASP authorization, Haru Invest can now offer crypto exchange and wallet/custody services, meaning that EU countries can buy and trade between crypto and Euro directly via their platform;
- British Virgin Islands (BVI) approved fund: As a BVI-approved fund, they are recognized under the Securities and Investment Business (Incubator and Approved Funds) Regulations of the British Virgin Islands.
Haru Invest’s customer support
To ensure users receive timely assistance and guidance for any concerns or inquiries they might encounter while using the platform, Haru Invest has made available an array of customer support channels, including:
- Haru Invest help center: Find everything from how to set up your account to loyalty programs;
- Submit a request: If you didn’t find what you were looking for at the help center, you can submit a request;
- Official announcements and updates: Find information about Haru feature updates and official announcements;
- Account setup: Information for new Haru Invest members on setting up their accounts;
- Account support: Topics about sign-in issues, KYC verification, account information change, and statement document requests;
- Live chat: Available Monday from 12 AM to Friday 11:59 PM (UTC);
- Haru Invest blog: Latest news in crypto, industry insights, and how-to guides;
- Social media channels: For the latest updates and dynamic interaction between the platform and its community, check out their social channels, including Facebook, Instagram, Telegram, Twitter, and Reddit;
- LinkedIn: Haru Invest’s CEO Hugo Hyungsoo Lee’s profile on LinkedIn.
Based on the security measures implemented by Haru Invest, it appears to be a safe and solid platform for investors looking to diversify their financial portfolios with digital assets.
Notably, since its inception, it has recorded zero security breaches, late withdrawals, or missed earnings payouts.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about Haru Invest
What is Haru Invest?
Haru Invest is a digital asset management platform based on algorithmic trading tactics that capitalize on market inefficiencies to produce consistent returns.
How does Haru Invest keep your assets safe?
Haru Invest complies with international AML/KYC standards and partners with BitGo to safeguard your assets. Additionally, the platform necessitates members pass through several security layers to complete a transaction, after which it transfers deposited assets to a cold wallet for heightened security.
How are your crypto assets at Haro Invest managed?
All crypto assets are managed by in-house trading teams and trusted partners, who undergo regular, comprehensive due diligence. These assets are then spread across the top 10 crypto exchange platforms by trading volume for algorithmic trading.