Michelle Legge
By Michelle Legge • Head of Crypto Tax Education
Updated Jan 16, 2024
This article has been fact checked and reviewed as per our editorial policy.

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...Platform
For widest range of cryptoBinance
For borrowing cashCoinbase
For flexibilityCrypto.com
For flash loansAave
For additional rewardsCompound
For lowest APRNexo
For Bitcoin-backed loansUnchained Capital
For the highest LTV ratioYouHodler
For instant fundsCoinRabbit
For flash swapsUniswap
For self-repaying loansAlchemix
For small loansSpectroCoin
For one-stop DeFi shopCake DeFi
For staked ETHOasis
For cashbackSalt Lending

Binance loans

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%

Learn more about Binance loans, and discover how Koinly calculates Binance taxes fast.

Coinbase loans

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

Learn more about Coinbase loans, and discover how Koinly calculates Coinbase taxes fast.

Crypto.com loans

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

  • Flexible repayments

  • No credit check

Learn more about Crypto.com loans, and discover how Koinly calculates Crypto.com taxes fast.

Aave loans

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

Learn more about Aave, and discover how Koinly calculates Aave taxes fast.

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.

  • Low APR thanks to over-collateralization

  • Collateral asset options include ETH, WBTC, COMP, UNI or LINK

  • Earn COMP tokens for using the protocol

  • Automated loan calculator based on your collateral

Learn more about Compound Finance, and discover how Koinly calculates Compound Finance taxes fast.

Nexo loans

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

Learn more about Nexo loans, and discover how Koinly calculates Nexo taxes fast.

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

Learn more about YouHodler, and discover how Koinly calculates YouHodler taxes fast.

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.

  • Uncollateralized loan

  • Ideal for arbitrage traders

  • Automated by smart contracts

  • Technical knowledge of protocol necessary to facilitate trades

Learn more about Uniswap and discover how Koinly calculates Uniswap taxes fast.

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

  • No liquidations

  • 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%

  • Borrow DUSD

  • Range of collateral options

  • Instant approval and funding

  • No credit checks

  • A variety of other DeFi products are available

Learn more about Cake DeFi and discover how Koinly calculates Cake DeFi taxes fast.

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

  • Borrow DAI

  • Low variable annual fees from 0.25%

  • No repayment schedules or minimum payments provided your vault maintains the correct collateral

Learn more about Oasis.app and discover how Koinly calculates Maker taxes fast.

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.

Learn more about Salt Lending and discover how Koinly calculates Salt Lending taxes fast.

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.

crypto loans with collateral

EXAMPLE

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:

ProsCons
Immediate access to fundsRisk of liquidation
Low APRRisk of margin call
Automated margin calls to maintain positionMay need to provide more collateral
No credit checksMay 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.

ProsCons
No risk of liquidation or margin callMay require a credit check
Ideal for arbitrage opportunitiesRelatively few options available
Generally automated via smart contractsHuge target for scammers

What are some of the benefits of a crypto loan?

Crypto loans come with a lot of perks, including:

  • Increased liquidity

  • 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.

benefits of crypto loans

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.

risks of crypto loans

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:

  1. 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.

  2. 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.

  3. Choose an address or bank account where your loan will be sent.

  4. Receive your loan and use it how you wish.

  5. 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.

Interest expenses

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.

Loan Liquidations

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.

crypto loans tax

FAQs

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.

Koinly tax summaryYou 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.

Koinly tax reports

Banner with Koinly logo and text: Get Your Crypto Tax Report

Disclaimer
The information on this website is for general information only. It should not be taken as constituting professional advice from Koinly. Koinly is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.
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