20 Best Crypto Lending Platforms – How Do They Work

What are the best crypto lending platforms? If you do not want your crypto holdings to lie idle, you can use them as collateral for a loan, big or small.

This is one of the significant benefits of investing in cryptocurrency. There are different crypto lending sites out there that make such loans much more accessible to the people.

They help the HODLers in achieving liquidity in the process from their investments and for that they do not even need to sell their coins.

However, to take the fullest advantage of these crypto lending sites you will need to understand the risks involved, the pros and cons, as well as the tax implications on these loans made.

You can make a Centralized Finance or CeFi loan where a central authority is the custodian of collateral or Decentralized Finance or DeFi loans that depend on smart contracts.

There is no central organization to implement the terms and conditions of the DeFi loans.

It is nice to earn interest on your crypto coins lying idle but it is devastating to lose them all due to misappropriation or being stolen.

To prevent such a thing from happening, here are some of the best lending platforms that you can rely on.

20 Best Crypto Lending Platforms

Best Crypto Lending Platforms

Though a lot of crypto lending sites are available out there, it is needless to say that all of them are not created equal. Therefore, you should always choose the best and most reliable ones.

You should pay attention to the safety and security aspects, the repertoire of the lending platform, its flexibility and ability to handle all the intricacies and technicalities involved in it most efficiently.

This will reduce your risks. Check out Best Crypto Newsletters to Follow.

If you are not very keen in researching, here is a list of some of the best crypto lending sites available today. You can use any one that suits you and serves your purposes.

1 CoinLoan – Secured Lending Process

This P2P crypto lending platform is based in Estonia. This is one of the most popular lending platforms with a very simple lending process followed.

All loans are supported with a bank-grade security. This lending platform is also known to provide one of the biggest choices of fiat, cryptocurrencies, and stablecoins.

2. YouHodler – More Flexible and Higher Loan to Value Rate

This lending platform has its offices in Switzerland and Cyprus and offers crypto-backed loans with fiat, crypto, and stablecoins.

The unique aspect of it is that this platform offers a more flexible and high Loan to Value rate. It can be as high as 90%, depending on the security. However, loans with 50 to 70% LTV are common.

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3. SALT Lending – One of the Pioneers in the United States

This is one of the first crypto lending platforms in the US to come into existence in 2016. It offers P2P loans that are backed by crypto assets.

The loaning process is also very simple and there are no credit checks needed for an user to undergo. The best thing about this lending platform is that it offers completely customizable terms of a loan.

4. Nuo Network – Supports Over or Under Collateralized Loans

This is a decentralized crypto loaning marketplace. You can lend or borrow  a variety of loans including Ether or other ERC-20 tokens.

Interest here is paid out on a daily basis to the lenders who supply coins to their reserve pool.

And, the borrowers can either over collateralize or under collateralize their borrowings. The platform also supports meta transactions.

5. Helio Lending – Fast Loan Approval 

Based in Australia, this is the first crypto lending platform that is licensed and regulated. It offers fast and secure access to fiat funds.

It is also known for its speedy loan approval with most of the loans approved on the same day of applying for it.

The terms and conditions are clear and simple. This platform accepts and lends four major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Ripple.

6. Bank of Hodlers – Convenient Borrowing and Lending Terms

This lending platform is registered in Singapore and allows the users to buy, sell, lend, borrow, and swap coins on their platform.

The interest for the lenders are calculated daily though the same is paid on a weekly basis.

Lenders can withdraw funds at any time irrespective of the lending terms and the borrowers can pay back the loan in any number of installments and on their own time.

7. Tokens.net – Unlimited Loan Duration

This crypto lending platform of the United Kingdom allows the borrowers to borrow according to their own terms.

The best part is that the duration of a loan can be indefinite. The loaning process is simple and fast without any wait period.

However, as of now, this lending platform only caters the borrowers and not the lenders.

8. BlockFi – Simple Loaning Process

This US based crypto lending platform hit the market in 2017 and has grown in popularity ever since.

The primary custodian of this lending platform is the Gemini Trust Company LLC of New York. As a borrower you can choose the coin in which you want to be paid out such as USD, USDC, or GUSD.

The loan process is also very simple and takes only a couple of minutes to get sanctioned. This lending platform does not lock the lenders in a contract allowing them to withdraw their funds any time.

9. Nexo – One of the First to Offer Instant Loans

This crypto lending platform is based in Switzerland and is also one of the first crypto lending platforms in the world that offered instant loans.

There are no hidden fees or minimum repayment clauses in the loaning terms. The process is simple and there are no credit checks made.

The lenders can earn interest up to 8% on both stablecoins and fiat currency.

10. Celsius Network – Highly Customizable Loan Terms

Celsius Network is also one of the most popular crypto lending platforms wherein you will find highly customizable terms for taking out a loan.

As of now, they are offering an APR of 1% on USD and stablecoins. This lending platform has also made a notable impression in the corporate sector as well by lending to over a hundred institutions.

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11. Squilla – One of the Most Reliable New Players

Squilla has its headquarters in Estonia and is one of the new players in the block. However, it offers a lot of benefits to the users with security of the assets being their topmost priorities.

They protect every loan by over collateralization, military grade encryption and 100% cold storage. The borrowing and lending terms are customizable and the platform charges very low fees.

12. BTCPOP – A P2P lending platform with Unique Features

This P2P crypto lending platform comes with a number of distinctive features that helps it to standout from the rest in the industry.

They offer loans based on the online reputation of the applicant and not on their background check or credit score.

As of now, they only offer BTC loans and accept altcoins. However, there is little regulation by the government on this lending platform located in the Marshall Islands.

13. SmartCredit.io – Low and Wide Range of Collateral Options

SmartCredit.io was launched in April 2020 but offers a wide range of benefits in spite of being a new player.

One of the most significant benefits is that they have a wide and diverse collateral options and also offer low collateral.

This decentralized platform typically offers P2P loans and therefore are not instant.

They also follow the footsteps of BTCPOP and create their own credit score based on the social presence of the user and blockchain history.

14. Crypto.com – Offers Optimal Security

This is a platform that offers a large variety of financial services. It offers crypto loans, digital wallet, and also has an exchange and a VISA card.

Security is their primary concern. They offer 100% cold storage and are a partner of Ledger, the expert in security solutions.

There are no credit checks made and there is no deadline for a borrower to repay the loan. However, if you are in the US, lending is not available on this platform.

15. Binance Loans – Best for Short Term Loans

This is one of the largest crypto exchanges in the world. They also offer crypto loans, mostly for a short term of 90 days.

As of now, you have only two payout options such as BUSD and USDT. Binance Loans offer different loan periods and calculate the interest on a daily basis.

They use different crypto coins such as BTC and ETH. They are very strict regarding overdue and will sell your collateral off within three days after the due date.

16. Unchained Capital – Multi-Signature Model Storage

This lending platform of the United States comes with strict security features and follows a unique approach when it comes to securing the loan or custody.

They create a multi-signature model for storage thereby eliminating the chances of any single point failure.

The loan process is also very fast and sometimes it can be approved on the same day of application.

The duration of a loan can be of 3 months to 3 years and the interest rate will vary according to the loan amount, loan duration, and also the specific US state you reside in.

17. xCoins – Supports PayPal

xCoins is the only P2P crypto lending platform that supports PayPal and allows you to obtain bitcoin using a credit card as well.

It also makes some unique offerings but it is available only in a few countries. Also, PayPal may freeze your account if there are any undefined deposits received from xCoins.

This however affects the reputation of this platform a bit.

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18. Bankera – A Platform with Standout Traits

Bankera has launched their loan platform in 2019 but there are different attributes of it that helps it stand out from the competition.

It offers the lowest loan amount in the market and also offers customizable Loan to Value rates of up to 75%.

There are also no fixed EMIs for the borrowers to repay the loan. If repaid with BNK, the native token of Bankera, it will reduce the interest rate even further.

19. MoneyToken – AI Based Match Up

This UK-based crypto lending platform is decentralized. The unique aspect of it is that it uses Artificial Intelligence to match up potential borrowers and lenders with each other.

This makes the process even faster and less expensive. This eventually helps in keeping the fees and rate of interest low. However, being new in this field, they offer a low amount of loan for a short period of time.

20. LendaBit.com – Strong Collateral Process

This P2P centralized crypto lending platform from Hong Kong is known for its strong collateral process and extensive security features.

This customer-oriented lending platform comes with an easy to use and intuitive interface making it one of the most suitable platforms for the beginners in crypto lending ventures.

There are also several Customer Care channels which you can rely on should you need any help or a prompt resolution for any issues during the process.

How Do Crypto Lending Platform Work?

There are basically four simple steps in which the entire working process of the crypto lending platforms can be broken into. These are:

  • Signing up on one of the lending platforms
  • Depositing funds to the investment account
  • Choosing your investment product and
  • Making an investment in secured loans.

The crypto lending platform, or the borrower here, will repay the principal amount along with the interest accrued back into your account.

There are a few other things to know to understand the working process completely.

  • First, all your investments are secured because the borrowers must deposit crypto assets over and above the amount of the loan.
  • Second, you will not hold any private keys to your crypto.
  • Third, the LTV or Loan to Value typically ranges from 50%  to 70%.
  • Fourth, depending on the currency, the yield from these loans could be anywhere from 3 to 17% annually.

From the perspective of the borrower, a request has to be made to the specific lending platform along with the amount and duration of the loan.

The lending platform will evaluate it based on the security and once they approve it, the borrower has to stake a portion of the crypto as collateral, which is usually 50%. Once the loan amount is repaid, the borrower is allowed to unlock the crypto collateral.


Earning fast on crypto is possible through crypto and bitcoin loans but you will need to find a suitable lending platform for that.

These can be P2P platforms or otherwise, but it should be one of the best as contained in the list above.