22 Platforms for crypto lending (crypto lending)

Crypto lending is becoming a successful alternative to traditional loans. Celebrities like Elon Musk and Bill Gates have endorsed the new decentralized finance (DeFi) revolution. This article explores the concept of crypto lending and offers a list of the top 22 crypto lending platforms.

What is crypto lending?

Crypto lending is a type of financing that allows a cryptocurrency holder to lend their cryptocurrency to other people in exchange for interest payments.

This concept is very similar to traditional banking. In the traditional case, you lend money to your bank by opening a savings account. The bank uses your money. In return, he regularly pays interest on your savings and guarantees the safety of your funds. (In past decades, banks have paid interest rates on savings accounts of 2-3% and even significantly higher. In 2022, interest rates on savings accounts are negligible, in some cases 0,01%).

Similarly, in a DeFi environment, a crypto holder lends crypto to a borrower in exchange for a guaranteed annual interest rate (APY), which can range from 5% to 12% in most cases.

There are three stakeholders in this scheme: the Lender, the Borrower, and the DeFi Platform. The lender benefits by earning interest, while the borrower gains instant access to the crypto asset without resorting to traditional funding sources. Similarly, the crypto lending platform profits by charging the borrower a small service fee.

The following section provides more information about how crypto lending works, as well as the mechanics of this process.

How does crypto lending work?

Any owner of a cryptocurrency can receive passive income by lending a crypto asset to other people for temporary use. The interest rate paid to the lender depends on the coin and the terms of the deposit. It usually ranges from 3% to 15%. The interest rate is determined by supply and demand. If demand is high and supply is low, then APY is higher, and vice versa.

The term of the deposit may also be determined by APY. Generally, the longer the loan term, the higher the APY. Sometimes APY is fickle and fluctuates based on supply and demand. However, this is not the norm.

Unlike regular banks, a crypto lender doesn't care who gets the loan. In accordance with the rules set by the individual crypto lending platforms, the loan amount is automatically released to the borrower once they have met all the loan requirements.

When borrowing cryptocurrencies, you need to approach the crypto lending platform with a request for a loan. The platform requires a cryptocurrency collateral from you to secure the loan it offers.

Traditionally, the LTV ratio (loan to value ratio) is 50%. As a borrower, you can get a loan of 50% of the total collateral. For example, if you deposit $10 in cryptocurrencies as collateral, the loan amount will be $000. Once the loan is paid in full, you will receive back the $5 you left as collateral.

Before making any decision, both the lender and the borrower need to conduct a comprehensive market research. Since the DeFi space is constantly changing, the APY for cryptocurrency can differ from one platform to another. Likewise, lending terms, withdrawal fees, and loan-to-value ratios may also vary. Currently, most cryptocurrency lending platforms offer an interactive interface that makes it easy to compare available lending options.

APY vs. APR

Before considering the options, it is important to understand the difference between APY and APR (annual interest rate). You will most likely see the two terms used at the same time, which can often confuse both loan seekers and lenders.

API refers to the amount of interest received on your savings, and APR is the amount of interest you owe the lender. APY includes the rate you earn in a year. Keep in mind that APY includes compound interest. In contrast, APR includes an interest rate in addition to any fees you pay for using the loan.

Benefits of crypto lending

Crypto lending is beneficial for both the lender and the borrower. From the borrower's point of view, the main advantages are:

• Availability: Taking a crypto loan is much easier than a loan from traditional banks. If you own cryptocurrency, you can get a loan without strict requirements and paperwork. This is different from traditional bank loans where banks have to go through many tedious steps of checking your credit history, employment history, bank balance and personal documents.
• Speed: Under normal circumstances, you can receive a crypto loan within 24 hours. Some cryptocurrency platforms offer instant funds to your account as soon as you meet their requirements. Usually only a bond and a government-issued ID are required.
• Flexibility: You can set APR according to your desired cost. As discussed earlier, many crypto lending platforms allow the borrower to adjust the APR depending on the loan term, loan-to-value ratio, type of cryptocurrency, and amount of collateral.

Of course, crypto lending has its advantages. You can earn a much higher rate of return compared to traditional investment accounts. In most cases, you can stop funding at any time without any restrictions. Accordingly, you can also use multiple crypto assets to boost your portfolio returns.

Risks of crypto lending

Crypto lending exposes you to inherent risks, some of which are listed below:

• Volatility: Price fluctuations can make lending inefficient. A fall in the price of a cryptocurrency can negatively affect your portfolio. In such a case, the cryptocurrency you borrowed could be used elsewhere for more profit.
• Credit counterparty risk: even the best crypto lending platforms don't tell you where they are putting your money and who is getting the loan. This is one of the reasons why established platforms like Celsius Network and BlockFi have made negative headlines. Celsius, which filed for bankruptcy, relied on borrowed cryptocurrencies from its clients to provide loans to institutional investors. BlockFi is another well-known lending platform that recently filed for bankruptcy as its business model was heavily dependent on the booming crypto economy. Although its financial difficulties were temporarily alleviated thanks to FTX's bailout in June of this year, BlockFi ended up having to file for bankruptcy following the collapse of FTX.
• Solvency: DeFi always comes with a platform solvency risk. While centralized platforms may file for bankruptcy in order to pay off their customers, some of the best crypto lending platforms bear this risk themselves. Disputes often end up in court.

Best crypto lending platforms

Here is a list of the best crypto lending platforms, in no particular order. Just browse the list to find the crypto lender that's best for you.

1. bybit

Bybit is a one-stop cryptocurrency marketplace where you can not only trade, but also earn reliable APY on various products available Bybit Earn. Its latest OTC lending product is perfect for institutional traders who want to use collateral from their account spot and derivatives to borrow more USDT.

You can borrow up to four times the total equity in your Spot and Derivatives account for up to 12 months. Perhaps the most compelling feature of Bybit lending is that you can continue to trade your collateral in the spot and derivatives markets as long as your LTV is within the normal range. Besides, transaction fee not charged.
Start borrowing from Bybit today and enjoy competitive rates.

2. Unchained Capital

Company Unchained Capital headquartered in Austin, Texas, offers bitcoin loans to individuals and businesses in the US.

To protect the interests of customers, the company's business model uses overhypothecation. Unlike other lenders who provide bitcoin to third-party custodians, Unchained Capital places bitcoin in special multi-sig vaults. Not only do you own the ownership, but you can cryptographically prove that your Bitcoin is permanently stored at a dedicated address.

The minimum APR rate is 12,58% with an LTV ratio of 40%. The APR varies between 12,58% and 15,42%, but your Bitcoin is not at risk.

At the moment, Unchained Capital only serves the United States.

Verdict: Unchained Capital is one of the best crypto lending platforms to protect your assets.

3.CoinRabbit

London registered company Coin Rabbit is quickly becoming a popular choice among crypto traders due to the variety of cryptocurrency offerings. There is no KYC or credit check here, and you can even get a loan for as little as $100.

Lenders can earn 10% interest on five popular coins: USDT, USDC, BSC, USD Coin and Binance USD. CoinRabbit does not charge any fees for using the platform and the funds are never blocked.

Of course, the choice for borrowers is greater: as collateral, they can use the 70 best coins listed on the site. The APR rate fluctuates between 12% and 16% for almost every coin.

Despite the ease of doing business and the number of options, the APR rate on CoinRabbit is comparatively high for borrowers.

Verdict: CoinRabbit is one of the best crypto lending platforms due to the variety of crypto assets available.

4.SpectroCoin

If you just want to get a loan try SpectroCoin. The Belarus-based DeFi platform has been serving the crypto community since 2013 and has received consistent ratings from independent experts.

SpectroCoin is different in that it offers borrowers a low interest rate for using a loan. Depending on the cryptocurrency you will use as collateral, the interest rate can be as high as 4,95% when using the native BNK token for interest payments. At the time of this writing, the maximum APR rate is 17,95%.

The APR rate is mainly determined by the loan to value ratio. SpectroCoin offers LTV from 25% to 75%. In general, you can get a crypto loan ranging from 25 euros to 1 million euros.

SpectroCoin doesn't offer much for lenders as the company is primarily into crypto loans.

Verdict: SpectroCoin's flexible lending options make it one of the best crypto lending platforms.

5. AQRU

AQRU is a Bulgarian company that is also registered in the UK and Lithuania. It has a pretty good reputation among crypto traders.

AQRU mainly serves creditors. The lending process is simple and efficient. All you have to do is deposit your cryptocurrency on the platform to start earning interest. The highest APY is 7% on USDC Maple. There are five stablecoins to choose from.

AQRU provides perhaps the easiest and most flexible way to start earning interest. It provides full collateral for the money it lends to retail investors and institutions, ensuring your funds are safe.

While the platform is easy and safe to use, the APY could be higher.

Verdict: AQRU is one of the best crypto lending platforms for beginner crypto traders interested in making regular passive income.

6.Nebeus

Nebeus is an Irish company authorized by the Central Bank of Ireland (CBI) to issue electronic money. Its loan products are backed by a $100 million insurance fund.

You can earn up to 12,85% per year by renting out your crypto products. After opening an account, lenders can easily withdraw earned funds in euros and stablecoins every 24 hours.

Two types of loans are offered: Quick loans and flexible loans. Quick loans are designed for your daily needs. Often they are provided at 0% per annum for three months. The LTV ratio is 50%, and there is also the possibility of free early repayment. In contrast, flexible loans offer LTV ratios of up to 80%, but interest rates typically range between 6% and 13,5%.

The only drawback of the service is the lack of crypto assets.

Verdict: The variety of loans makes Nebeus one of the best crypto lending platforms.

7. Mango Markets

Mango Markets is a decentralized exchange based on the Solana blockchain. It is known among crypto traders for its lightning speed, cheap transactions and on-chain order book.

Users can automatically receive interest on deposits or take fully secured loans secured by placed assets. The interest rate fluctuates depending on the use of the pool. You can view existing deposits and loan interest rates on their website. The platform offers lending services for 14 digital assets, including popular cryptocurrencies and stablecoins.

Before taking out a loan, make sure you understand the rates as they can fluctuate a lot depending on the underlying asset. Interest rates on loans of some of the most famous cryptocurrencies, such as BTC, can be less than 1%.

Mango Market is a relatively new market entrant and there is not much information about the company in the public domain.

Verdict: Mango Markets is one of the best crypto lending platforms for finding low cost and transparent lending rates.

8. Midas Investments

Midas Investments is a Singapore-based crypto platform that focuses on building wealth through passive income. With over 200 million assets under management, she has been serving the crypto community since 2018.

You can consistently receive high profitability by replenishing your account. Most assets bring APY from 9% to 18%. There are no limits, levels and locks. If you are ready to invest in the native MIDAS token, APY increases by 2-3%.

Midas.Investments uses high-risk investment strategies that may not be suitable for everyone.

Verdict: Midas.Investments crypto lending platform can help you generate highly profitable passive income.

9. Coin Loan

CoinLoan is a well-known European company licensed by the Estonian Financial Supervision and Regulatory Authority. Founded in 2017, it focuses primarily on crypto lending.

You can easily earn up to 12,3% APY across multiple crypto assets and stablecoins. CoinLoan not only offers one of the highest yields on the market, but also does not charge any deposit fees and you can withdraw funds at any time.

Borrowers can also get a low APR of 4,95% if they are willing to take out a loan with an LTV of 20%. APR varies from 4,95% to 11,95% depending on the LTV value. Luckily, there are no lock-up periods, withdrawal fees, or penalties for early payments.

It is important to note that interest rates and returns are lower if you do not use the CLT coin.

Verdict: CoinLoan has some of the highest savings interest rates, which puts it among the best crypto lending platforms on the market.

10. You Hodler

YouHodler is a brand located in the EU and Switzerland that mainly specializes in crypto-backed loans. It also offers an attractive crypto savings account.

Instead of lending your crypto assets, you can earn up to 12% on them by opening a YouHodler savings account. The minimum amount required to earn passive income is only $100.

YouHodler also allows borrowers to borrow using any of the top 50 cryptocurrencies. When borrowing on this platform, you will also benefit from a high LTV ratio of up to 90%, which is one of the highest rates in the industry.

The only downside to YouHodler loans is the high APR rate, which ranges from 13,68% to nearly double for some assets.

Verdict: Consistent rankings and great reputation make YouHodler one of the best crypto lending platforms.

11. Hodlnaut

Hodlnaut is a Singapore-based crypto platform that also operates from Hong Kong. Its activities are controlled Singapore Fintech Association.

You can lend your cryptocurrency and earn up to 7,25% per annum. There is no minimum loan amount. Interest payments are transferred every Monday to your Hodlnaut account. High net worth individuals willing to deposit more than 100 BTC can earn more.

Hodlnaut only offers loans to institutional investors. Loan amounts start at $50 and you can choose between open or fixed terms starting from three months. There are no withdrawal fees and LTV is 000% or 25%.

There isn't much information on the Hodlnaut website, so you'll have to create an account or contact support for more information.

Verdict: Hodlnaut is one of the best crypto lending platforms for institutional investors.

12. Ledn

ledn is a Canadian crypto platform that allows you to get dollar credits and special loans to buy more bitcoin. It may have a somewhat fancy name, but the interface of its website is simple and easy to navigate.

The crypto platform offers Bitcoin and USD savings accounts for its lending activities. You can earn up to 7,50% APY paid in USDC or 5,25% paid in Bitcoin.

If you need a loan, Bitcoin-backed loans are available at 9,90% per annum. Also look out for their reference product, B2X credits, used to double your bitcoin balance.

Despite some great features, Ledn only works with Bitcoin and USDC.

Verdict: Ledn is one of the best crypto lending platforms for bitcoin investors.

13. Compound finance

Compound Finance, based in California, is quite famous in the industry for its innovative DeFi model and community-driven Decentralized Autonomous Organization (DAO).

Lending and borrowing rates on the platform continue to fluctuate thanks to the income farming model. However, lenders can count on interest rates comparable to market rates. You can also view existing rates on the platform's website under the "Markets" tab.

In addition, lending conditions are very flexible. Depending on the market situation, the APR rate for BTC can range from 0,04% to 6,5%. The USDC rate also varies from 0,15% to 10% depending on market dynamics.

Compound.Finance is a solid platform for getting loans, but keep an eye out for rate changes.

Verdict: Identity protection and lack of KYC make Compound.Finance a very attractive platform for crypto lending.

14. Yield App

Yield App is a global fintech company operating under a European cryptocurrency license.

This Estonian company only deals with cryptocurrency lending. Using her platform, you can earn some of the highest interest rates on USDT. At the moment, you can earn up to 13% on USDT if you are willing to stake the native Yield App token - YLD. If you don't want to bet on YLD, the rate drops to 6% for stablecoins and 2,5% for ETH and BTC.

Before placing a bet, please be aware that the platform only supports six coins. In addition, crypto assets are not backed by insurance.

Verdict: Despite some shortcomings, Yield App promises to be one of the best cryptocurrency lending platforms for earning USDT.

15. Haru Invest

Haru Invest is a South Korean crypto platform that uses various innovative strategies to provide some of the highest interest payouts in the industry.

It offers three ways to make money by lending your cryptocurrency. You can earn up to 7% per annum by depositing your cryptocurrency into their wallet. There are no blocking periods and earnings are paid daily.

For more curious crypto enthusiasts, the platform offers the opportunity to earn up to 15% per annum by locking your cryptocurrency for a period of 15 to 365 days. Please note that there is an early withdrawal fee. If you want to earn even more rewards, consider staking cryptocurrencies on Haru Earn to earn up to 25% per annum.

Before making your choice, please remember that Haru does not support fiat transactions.

Verdict: Haru Invest is one of the best crypto lending platforms for those who want to lock up their cryptocurrencies for a relatively long time.

16. Ave

Aave, a Swiss technology company founded in 2017, is a liquidity protocol built around seven networks and 13 markets.

Lenders can take advantage of interest rates that are calculated and summed up in real time. Because of the stimulation protocol Aave it is difficult to get an accurate APY value. However, you can expect from 0% to APY on native token and up to 18% on USDT and BUSD.

If you are a borrower then you are in good company as the APR can be as low as 0,1% for MKR, 0,5% for AAVE and 1,3% for BUSD. Unfortunately, stablecoin interest rates are on the higher side.

Fluctuations in Aave's interest rates can often make it difficult to plan large investments.

Verdict: Aave is a great crypto lending platform for those looking to borrow cryptocurrencies at an extremely low interest rate.

17 Crypto.com

Crypto.com is a popular cryptocurrency exchange based in Singapore. Founded in 2006, it claims to serve 50 million customers.

According to the company's website, you can earn up to 8,5% per annum on some of the most famous crypto assets. There are over 40 digital assets available for staking and their respective interest rates are posted on the site.

Borrowers can monetize their assets with up to 50% secured loans. The interest rate starts from 8% and can reach 12%.

Despite the prominence of Crypto.com, high interest rates and minimum loan amounts can limit some borrowers.

Verdict: If you want a reputable platform offering tons of cryptocurrencies, Crypto.com is one of the best crypto lending platforms to consider.

18. Cake DeFi

DeFi Cake registered in Singapore and is a member of the Singapore Fintech Association. The platform has an excellent reputation among the crypto community.

Lenders can count on APY up to 7%. Despite rate fluctuations, the platform guarantees the base interest rate. Everything is clearly described in the lending section.

Borrowers can get funding in BUSD, Cake DeFi's native token. APR in most cases is between 0,5% and 5% and you can repay the loan at any time.

On the other hand, you will need to deposit at least 50% of the loan collateral in DFI tokens.

Verdict: Cake DeFi is the leading lending platform for borrowing funds using the DFI token.

19. Alchemix

alchemix is a European company popular for its self-sustaining loans. Users can receive loans that theoretically pay off in the long run.

The mechanics of Alchemix are easy to understand. Suppose a borrower deposits a certain amount of DAI stablecoins to get a loan with 50% collateral. Over time, the 50% LTV loan is paid back from the net profit generated from depositing the initial principal amount on the DAI deposit.

Ideally, you can use Alchemix without paying any interest on the loan. More importantly, there is a wide range of tokens to choose from – with no lockups or withdrawal fees – and there is virtually no chance of liquidation.

Before you decide, make sure you understand how the Alchemix model works. For beginners, it can be a bit difficult to understand.

Verdict: Alchemix, the leading crypto lending platform, allows you to lend cryptocurrency at 0% per annum.

20.OKX

OK is one of the largest cryptocurrency exchanges in the world. Like many of its offerings, OKX loan products are extremely competitive.

There are more than 20 creditable assets that have both flexible and fixed rates. Fixed rates on stablecoins like USDT are as low as 2% at 70% LTV. Likewise, lending terms for other major coins are extremely competitive.

If you like flexible terms, OKX publishes 24-hour APYs for their assets. You can also get a fair idea of ​​interest rates by looking at historical charts. In truth, OKX loans are one of the most undervalued loans in the crypto lending market.

This product is not available in the US and some other countries.

Verdict: OKX is one of the best crypto lending platforms for short term loans.

21. SALT Lending LLC

Founded in 2006 year, SALT Lending LLC is an American company that specializes in crypto lending. It offers products for both individuals and legal entities.

Unlike some other cryptocurrency platforms, the company does not charge fees for withdrawals, holdings, withdrawals, prepayments, or canceled ACH transactions. The APR rate, which varies from 0,52% to 5,49% depending on the LTV ratio of the collateral, is easy to understand.

Loan amounts start at just $1 and go up to over $000 million. You can also stabilize your deposits by adding stablecoins to them. Loans are financed within 1-24 hours.

One consideration is that long loan terms of 12 to 60 months may discourage some loan seekers.

Verdict: SALT Lending LLC is one of the best crypto lending platforms for long-term investors that can withstand long lockup periods.

22. Nexus

Nexus is an EU licensed and regulated institution. It currently manages the assets of about 4 million users in nearly 200 jurisdictions.

Lenders can earn up to 16% interest, which is paid daily. To start earning, it is enough to buy or transfer cryptocurrency to your Nexo account.
Borrowers can get loans from as little as 0% APR. Regardless of the conditions, the APR never exceeds 13,9%. Funding is approved within seconds and transferred to your Nexo account in less than 24 hours.
The only downside of the platform is the learning curve. Educational resources are scarce, which means you may have to contact support to get answers.
Verdict: Nexo is one of the best crypto lending platforms for getting low interest loans.

Should you try crypto lending?

If you are into cryptocurrencies for the long term, it is best to lend cryptocurrencies that are lying around in your wallet, as this will help you earn interest.

Taking out a crypto loan is also practical in the sense that you don’t have to sell cryptocurrencies to get a loan. Instead, you can hold onto your holdings to benefit from future bull markets and crypto booms.

Beginners and those who are relatively new to the crypto scene should choose a platform based on how they present their interest rates. If the terminology seems too complicated, avoid this platform and look elsewhere. Remember that there are many crypto lending platforms, so take your time to understand the terms of the loan. In many cases, it is better to choose a flat rate to be able to plan ahead.

Сonclusion

If banks are after you, a crypto loan is the best way to tame the beast. It's also practical for people who can't deal with credit reports, bankruptcies, and credit checks. If you love crypto – and have the patience to learn about crypto lending – our advice is: go for it.