15 Best Crypto Loans & Best Crypto Lending Platforms
Learn everything you need to know about the 15 best crypto loans, the best crypto lending platforms, how crypto loans work, and the different kinds of crypto loans - including flash loans, crypto loans without collateral, and more. ⚡💰
How to find the best crypto lending platform
Wondering about the best companies for Bitcoin and crypto loans? Finding the best crypto loan starts with picking the right lending platform for you. So if you're asking yourself "what's the best crypto loan out there?" you’ve come to the right place! That's why we've rounded up 2024’s top crypto loan contenders.
There are a lot of crypto lending platforms available - and after the collapse of crypto lending platforms like Celsius and BlockFi in 2022, it's never been more important to consider the liquidity and security of your crypto lending platform when you compare crypto loans. Following the crashes, Celsius and BlockFi investors were left unable to close their positions or access their collateral. Lenders similarly lost access to their assets, with millions of dollars tied up.
In other words, it's never been more important to know you're using a trusted crypto lending platform in 2024, which is why we've carefully curated our list to include reputable crypto lending platforms. That said, to fully understand the risks involved, you should always do your own research before using any lending platform.
15 Best Crypto Loans & Crypto Lending Platforms in 2024
Considering a crypto loan? Here are some of the best crypto loans to research in 2024:
|Best Crypto Loan for...
|For widest range of crypto
|For borrowing cash
|For flash loans
|For additional rewards
|For lowest APR
|For Bitcoin-backed loans
|For the highest LTV ratio
|For instant funds
|For flash swaps
|For self-repaying loans
|For small loans
|For one-stop DeFi shop
|For staked ETH
As one of the largest centralized crypto exchanges - Binance crypto loans are a solid bet from a crypto lending platform with a solid reputation.
Choose a loan term between 7 and 180 days
No interest penalty for early repayment
More than 60 different popular cryptocurrencies to borrow
More than 60 cryptocurrencies are accepted as collateral
Initial LTV is 65%, with a margin call at 75% and liquidation at 83%
Another huge and well-trusted crypto exchange - Coinbase lets investors borrow cash against their BTC, making these loans ideal for investors who need liquidity in the short term but don’t want to sell their crypto.
Low APR of 8%
Flexible repayment schedules
Borrow up to $100,000
No credit checks
Immediate funding to your bank account or PayPal
You can borrow up to 50% of your crypto collateral with Crypto.com credit, with a flexible credit calculator tool that lets you set most of the terms of your loan.
Lower annual interest when you stake CRO
More than 20 cryptocurrencies accepted as collateral
Receive a crypto loan of PAX, TUSD, USDC or USDT
No credit check
Aave is one of the largest DeFi lending protocols and offers both collateralized crypto loans and uncollateralized flash loans. Due to the high LTV rates - you’ll find very low interest rates in return.
Leading DeFi lending protocol
Overcollateralized loans with market-leading interest rates
Flash loans available
Seven markets available on V3, including Ethereum, Avalanche, Harmony & Arbitrum
Compound crypto loans
Compound Finance was one of the original DeFi lending platforms and a pioneer in the market. To this day, it remains a very popular option for those looking for a DeFi loan.
Collateral asset options include ETH, WBTC, COMP, UNI or LINK
Earn COMP tokens for using the protocol
Automated loan calculator based on your collateral
Nexo is a popular crypto lending platform for users worldwide - although the company has just recently withdrawn many services for US residents and plans to continue withdrawing services after being targeted and penalized by the SEC.
Loans starting from 0% APR for Gold or Platinum members
Instant approval and funding
No credit checks
Borrow between $50 to $2,000,000
Loans available in 40 fiat currencies and stablecoins like USDT
Pick from more than 60 cryptocurrencies for your collateral asset
Unchained Capital Bitcoin loans
Unchained Capital is a Bitcoin financial services company. Unchained Capital offers investors Bitcoin saving vaults and IRAs, as well as Bitcoin-backed loans.
Only available for some US investors
Residents in Idaho, Massachusetts, New Mexico, North Dakota, South Dakota, & Vermont are excluded
No rehypothecation - client assets are never loaned
6 or 12-month repayment schedules
Loan up to $1,000,000
Learn more about Unchained Capital.
YouHodler crypto loans
YouHodler is appealing to investors looking for a quick crypto loan with a range of collateral options and a high LTV, offering ratios of up to 90% for up to a year.
Up to 90% LTV
Loans available in EUR, USD CHF, GBP, and stablecoins
More than 40 cryptocurrencies to pick from as collateral
Loans available for up to 1 year
Instant approval and funding
No credit check
CoinRabbit crypto loans
CoinRabbit is a crypto lending platform with no KYC or credit checks, giving you liquidity fast when you need it and a lot of flexibility when choosing the right loan for you.
More than 130 options for collateral
No fiat currency loans
Borrow USDT, USDC, BUSD, BTC, ETH, DOGE or DGB
No KYC or credit checks
Minimum loans starting from $100
Learn more about CoinRabbit.
Uniswap flash swaps
Uniswap flash swaps are similar to Aave flash loans in that they let investors exploit arbitrage opportunities in a given liquidity pool without needing capital to do so.
Ideal for arbitrage traders
Automated by smart contracts
Technical knowledge of protocol necessary to facilitate trades
Alchemix self-repaying loans
Self-repaying loans might sound too good to be true, but thanks to some clever smart contracts, the developers at Alchemix have pulled it off.
Repayments automated by smart contracts
Deposit ETH, WSETH, RETH, DAI, USDC or USDT as collateral
Repay your loan early with no penalty
Up to 50% LTV
Learn more about Alchemix.
SpectroCoin crypto loans
SpectroCoin isn't just a crypto lending platform, it's a crypto exchange that offers crypto loans as an additional product, and it's ideal for investors looking for small loans in particular.
Deposit BTC, ETH, XEM, or DASH as collateral
Up to 75% LTV
Borrow euros, or a number of other cryptocurrencies including USDT, ETH, and BTC
Small loans are available, starting from €25
Maximum loan €1,000,000
Earn options and lower interest rates with BNK tokens
Maximum loan term one year
Learn more about SpectroCoin.
Cake DeFi crypto loans
As the name suggests, Cake DeFi is a platform specializing in a huge variety of decentralized financial services, including crypto loans.
APR from 0.5%
Range of collateral options
Instant approval and funding
No credit checks
A variety of other DeFi products are available
Oasis crypto loans
Oasis.app started out as part of the Maker Foundation - the organization helping govern MakerDAO, Maker Protocol, and DAI. It's a trusted platform in the DeFi space and offers DAI loans.
Deposit ETH, wBTC, stETH, UNI, LINK & many more as collateral
Low variable annual fees from 0.25%
No repayment schedules or minimum payments provided your vault maintains the correct collateral
Salt Lending crypto loans
Salt Lending is a Denver-based crypto lending platform that's particularly popular for investors in the US, Australia, and the UK.
Loan terms from 12 to 60 months
Personal and business loans are available
APR from 0.95%
Loans over $1,000,000 available
No credit checks
Stackwise feature gives borrowers crypto rewards
A caution though - Salt Lending was caught up in the FTX contagion, as some digital assets were held on FTX. At the time of writing, Salt Lending has paused deposits and withdrawals. It sounds like bad news, but Salt is one of the few platforms impacted that looks like it will pull through - as the company has just closed a $64.4 million Series A funding round and plans to use the capital to recapitalize the balance sheet and resume operations.
What is a crypto loan?
Crypto loans let you borrow crypto. There are two different types of crypto loans available - crypto loans with collateral and crypto loans without collateral.
There are many reasons an investor may take out a crypto loan. Hodling is a common strategy, but idle assets do little for crypto investors while they wait for the moon. A crypto loan can help increase your liquidity without depleting the assets you hold.
How do crypto loans work?
It depends on the type of loan you're taking out and whether you're getting a crypto loan with or without collateral. We'll cover both.
Crypto loans with collateral
Crypto loans with collateral are the most common type of crypto loan. Like with cash loans, you'll deposit a given amount in order to take out a larger amount.
Let's say you hold 1 BTC. You're waiting for BTC to hit 100K to sell and you're confident it's going to get there eventually. But you need liquidity now and don't want to sell your BTC. You can use your 1 BTC as collateral to get a loan. Many large centralized crypto exchanges like Binance and Coinbase offer this service with a wide range of cryptocurrencies, loan terms, and interest rates.
With crypto loans with collateral - you'll often need to overcollateralize, meaning you'll need to lock up more crypto than the overall value of your loan. This is due to the volatility of cryptocurrencies and protects the lender from the value of the borrowed crypto falling below the value of the loan.
Once you've paid back your loan and the loan interest, your crypto is returned to you. Let's look at the pros and cons of crypto loans with collateral:
|Immediate access to funds
|Risk of liquidation
|Risk of margin call
|Automated margin calls to maintain position
|May need to provide more collateral
|No credit checks
|May require KYC
Crypto loans without collateral
Crypto loans without collateral sprung up as a result of DeFi protocols. There are many unsecured DeFi lending protocols - but they all work in a fairly similar way in that they use smart contracts (code) to execute loan terms and conditions.
Collateralized DeFi loans exist - but due to the trustless nature of DeFi, they often require loans to be overcollateralized to protect lenders in the event of default. This reduces liquidity in the markets, and the DeFi space needs liquidity to function.
Not only this, but one of DeFi's main goals is to create permissionless, trustless access to finance. Many people taking out loans don't have the collateral in the first place. Crypto loans without collateral can give more people access to finance when they need it.
At the moment, this space is in its infancy. Primarily, you'll find flash loans being offered by major DeFi protocols like Aave, dYdX, and Uniswap. These flash loans (or flash swaps) allow investors to momentarily loan tokens or coins - most often ERC-20 Tokens or stablecoins - to make a given transaction.
Flash loans are both borrowed and returned within seconds in most instances and it's all executed by smart contracts that set the terms and conditions. If the borrower doesn't repay the capital or the conditions of the smart contract aren't met, the transaction is reversed and the funds return to the lender.
Investors have flocked to flash loans as they allow them to profit on arbitrage opportunities - where you buy on one market and sell on another. So when a token differs in price from one exchange to another, investors can use flash loans to make the most of these opportunities, even if it's a 1% difference, with a large enough flash loan, the gains are substantial. Aave in particular issues millions of dollars in flash loans daily.
There are, however, a small number of platforms now appearing offering crypto loans without collateral for specific lenders. For example, Atlendis offers crypto loans with no collateral for approved institutional traders.
A word of warning though - do your due diligence. This space is still new and as such, it's the ideal target for scammers. Remember - if it sounds too good to be true, it probably is. Let's look at the pros and cons of crypto loans without collateral.
|No risk of liquidation or margin call
|May require a credit check
|Ideal for arbitrage opportunities
|Relatively few options available
|Generally automated via smart contracts
|Huge target for scammers
What are some of the benefits of a crypto loan?
Crypto loans come with a lot of perks, including:
No impact on your credit score
Potential tax benefits
Crypto loans increase your liquidity without depleting the assets you hold - giving you cash flow as and when you need it. This can allow you to make further investments, essentially putting your idle assets to work.
As well as this, one of the big benefits is that the majority of crypto loan providers aren’t interested in your credit score, unlike traditional banks. This is a huge problem for millions of people around the world who are denied access to finance through traditional financial systems. In some instances - like with Coinbase - you can borrow cash using your crypto as collateral, meaning your digital assets can provide you tangible, real-world value without selling.
Crypto loans also benefit from lower and more flexible interest rates, loan amounts, and loan terms than you’d get from traditional loan providers like a bank - letting you borrow more, for longer, and for less.
Perhaps the biggest benefit of all though is when it comes to your tax bill. In most countries, when you sell, trade, or spend crypto, you’ll pay Capital Gains Tax on any capital gain (profit) you make as a result. So if you’re looking to sell an asset or trade an asset to invest in another - you’ll likely have a tax bill. But crypto loans can give you access to more crypto (or cash) without triggering a taxable event because you haven’t disposed of your crypto.
However, this all depends on how your crypto lending platform works. If you're using a DeFi protocol and you receive tokens representing your capital, this could potentially be seen as a crypto-to-crypto trade and therefore may trigger a taxable event.
What are the risks of a crypto loan?
Like everything in crypto - crypto loans aren’t without their risks, including:
Price volatility may lead to margin calls or liquidation.
Flash loan attacks
Lending platform liquidity
The unsteady price fluctuations of cryptocurrencies can lead to a margin call. This is where the borrower will need to put up more crypto in order to maintain their loan-to-value ratio, or else the loan will be liquidated.
When it comes to uncollateralized flash loans, as they're mostly executed by smart contracts you might think the risks are minimal. After all, the code sets the terms and conditions and the transaction is simply reversed if they're not met. But flash loans are new and so are the smart contracts running them. This has allowed cybercriminals to exploit vulnerabilities in so-called flash loan attacks.
Just this year, a flash loan was used to borrow huge sums on the PancakeSwap lending protocol to manipulate the price of the PancakeBunny's native token BUNNY in off-market lending pools, causing the price to crash by 95% and netting themselves around $3 million in the process.
Finally, many crypto lending platforms like Celsius, BlockFi, and Voyager abruptly halted operations last year as the bear market hit. Although there are a variety of reasons these lending companies halted operations - varying from exposure to FTX to the Terra Luna collapse - in some instances, customer funds were potentially mismanaged. You need to trust the platform you're taking your crypto loan out on as many investors got left with their collateral stuck on these platforms and are now facing lengthy bankruptcy proceedings in order to try and recover some of their losses. Though there's no clear rulebook on which crypto lending platform you can trust, a good mantra to remember is that if it sounds too good to be true - in terms of APR, or rewards - it probably is.
How do I get a crypto loan?
The precise steps to take out a crypto loan will vary depending on the crypto lending platform you're using, but in general, you'll follow these steps:
Sign up for the crypto lending platform you'd like to use. Depending on the crypto lending platform you're using, you may need to complete KYC identification in order to get your loan, but many decentralized crypto lending platforms do not require this.
Set your loan terms. This is usually with a loan calculator that will show you how much you're borrowing, how much your deposit is, your monthly repayment agreement, the length of your loan, and the interest rate you'll pay throughout your loan period.
Choose an address or bank account where your loan will be sent.
Receive your loan and use it how you wish.
Make your monthly repayments until your loan is paid off. If the price of your collateral drops, you may need to top up your deposit in order to maintain your LTV position.
Crypto loans tax
As we mentioned above, crypto loans offer some big perks when it comes to your tax bill - but that doesn’t mean you’ll get out of paying any tax entirely. We’ll start with the good news.
You won’t pay tax for taking out a crypto loan. It’s not considered income and you’re not disposing of your crypto by selling it, trading it, or spending it. So Income Tax and Capital Gains Tax don’t apply. You would however still need to check yes on the virtual currency question on IRS Form 1040.
This means you can use a crypto loan to increase your liquidity and avoid paying Capital Gains Tax on crypto. So if you’d like to invest in another asset - or if you need cash but don’t want the tax bill that comes with selling crypto - you can take out a crypto loan to swerve the tax bill.
Let’s take Coinbase loans as an example. You can use BTC as collateral to get a cash loan. This means you never dispose of your asset (by selling it, swapping it, or spending it) - but you still get cash. Spending your loaned cash is tax free.
Your interest expense can in some instances be written off on your tax return - provided you’ve used your crypto loan proceeds for investment or business purposes. For example, using the loan proceeds to purchase other cryptocurrencies, stocks, or securities. If this is what you used the loan for, you could deduct the interest expense on your tax return as an investment interest expense on Form 4952. However, if you’re using the crypto loan proceeds for personal expenses - like a car - this would not be tax deductible.
There are however a couple of instances you should know about where you may pay tax on your crypto loan. The first is if you fail to pay back your crypto loan - because then the platform will liquidate your collateral to cover their losses. Because your collateral would be sold - this would trigger a Capital Gains Tax event which you may need to pay tax on.
Similarly, if the price of your crypto collateral falls below the LTV threshold - this could also trigger liquidation. As above, the liquidation of your asset (sale) would trigger a Capital Gains Tax event and you may need to pay tax.
DeFi lending pools
As well as this, some decentralized crypto lending platforms work a little differently from centralized crypto lending platforms. In some instances, when you deposit your collateral on a DeFi lending platform, you'll receive tokens in return representing your capital. This could potentially be viewed as a crypto-to-crypto swap by your tax office and therefore trigger a taxable event.
More questions? Here are some of the most common ones we get about crypto loans.
When should I borrow crypto?
There's no cookie-cutter answer to this question, it will all depend on your individual circumstances as to whether a crypto loan is the right financial decision for you. You should always make sure you fully understand the risks involved in a crypto loan and your loan terms and conditions before agreeing to any crypto loan.
Can I get a crypto loan without collateral?
Yes. Platforms like Aave offer crypto loans without collateral - also known as flash loans. As well as this, companies like Atlendis are beginning to offer crypto loans without collateral for specific investors, based on their reputation.
Are crypto loans safe?
Generally speaking, crypto loans from trusted crypto lending providers are safe. However, you should always do your research, carefully read your loan agreement, and make sure you understand the risks involved before taking out any crypto loan.
How much can I borrow with a crypto loan?
This depends on the crypto loan platform you're using and how much collateral you're putting up. Some crypto lending platforms will let you loan up to $1 million!
What happens if I don't repay my crypto loan?
Your position will liquidate and you'll lose your collateral if you don't repay a crypto loan. Many crypto lending providers automatically liquidate collateral if your LTV ratio falls below an agreed amount due to price volatility as well.
Is a crypto loan risky?
Like all financial investments, crypto loans aren't without risk, including price volatility, margin calls, liquidation, and even crypto lending platforms halting withdrawals and deposits. You should carefully consider these risks before taking out a crypto loan.
How are crypto loans paid back?
This depends on the crypto loan you've taken out. If you've taken out a cash loan, you'll generally pay this back in cash in monthly installments. Meanwhile, if you've loaned another cryptocurrency like BTC, you'll generally pay this back in BTC in monthly installments. Some DeFi lending platforms don't require monthly installments and some even offer self-repaying loans.
Can I borrow from Binance?
Yes. Binance offers crypto loans with no penalties for early repayments. You can find out more about loan options, periods, and interest rates on Binance.
How do I get a cash loan with crypto?
There are a number of crypto lending platforms that offer cash loans with crypto collateral. All you need to do is pick one, choose the fiat currency you want to receive your loan in, and add payment details for how and where you'd like to receive your loan.
Simplify crypto tax with Koinly
Koinly crypto tax calculator simplifies your crypto taxes. No more guessing your gains, losses, or income - Koinly does it all for you.
All you need to do is sync all the wallets and exchanges you use with Koinly. You can do this using API integration in minutes or by importing CSV files of your transaction history. Once you’ve done this, Koinly calculates all your taxable transactions, including capital gains, losses, income, and expenses. You’ll find all this information and more in an easy-to-read tax summary.
You can then download pre-filled tax reports based on your location, saving you hours of filling out forms. For example, for US investors Koinly can generate your Form 8949 and Schedule D for you, as well as TurboTax and TaxAct reports.