10 Best Crypto Loan Providers 2024 (Expert Verified)

Want to get started with a cryptocurrency loan? In this blog, we’ll walk through 10 of the best crypto loan platforms in 2024 — as well as the pros and cons of each option! 

Learn More

Best for DeFi lending

Aave

Aave is one of the world’s most popular decentralized finance (DeFi) protocols that is used to borrow and lend cryptocurrency. Aave is built on the Ethereum blockchain and offers low interest rates and features like no-collateral flash loans.

Pros & Cons

• 
  Aave is one of the oldest and most trusted platforms in DeFi.
• 
  Flash loans available to take advantage of arbitrage opportunities! (Remember, flash loans are typically suited towards experienced investors with coding knowledge.)
• 
  Support for Ethereum and other networks — including Polygon, Avalanche, Harmony, and Arbitrum.

• 
  Users must actively watch and manage their positions to avoid liquidation.
• 
  May be difficult to use if you’re new to DeFi.
• 
  Interest rates can vary significantly based on asset. At the time of writing, borrowing ETH has an APR under 3%, while borrowing USDC has an APR over 16%.

Learn More

Best for self-repaying loans

Alchemix

Alchemix offers a unique self-repaying loan! The platform stakes your collateral in protocols like Yearn to generate returns. This return is then used to pay off your loan — so there’s no need for you to make monthly payments.

Pros & Cons

• 
  No need to make manual payments — the loan pays itself from yield from your collateral.
• 
  No forced liquidations.
• 
  Customize details about your loan — such as yield generation!

• 
  Because Alchemix relies on other protocols to generate yield, there is some risk if these applications fail or are compromised.
• 
  Only 6 cryptocurrencies supported as collateral — including ETH and DAI.
• 
  Currently, Alchemix only supports borrowing up to 50% of the value of your collateral.

Learn More

Best for security & trust

Arch Lending

Arch Lending has built their platform by focusing on security. All of your crypto holdings are secured with Anchorage, and customer collateral remains in storage until the end of the loan.

Pros & Cons

• 
  Arch Lending is focused on security — reducing the risk that you’ll lose your cryptocurrency due to hacks and/or bankruptcy.
• 
  Offers startup-equity backed loans and white glove service for high net worth individuals.
• 
  Beginner-friendly with quality customer service.

• 
  High costs — interest rates are 14%, with an additional 1.5% origination fee.
• 
  Supports BTC, ETH, and SOL only.

Learn More

Best for non-US customers

Binance

Binance is one of the world’s largest centralized exchanges. The platform offers a wide range of services — including cryptocurrency loans with low annual interest rates! At the time of writing, a loan on BTC has an interest rate just over 1%.

Pros & Cons

• 
  Wide range of supported assets — over 50 cryptocurrencies can be used as collateral!
• 
  Competitive interest rates.
• 
  Integrated with the Binance ecosystem.

• 
  Centralized platform risk.
• 
  Not available in the US, UK, or Canada. Currently available in France, Spain, Australia, New Zealand, and more!

Learn More

Best for no minimum loan requirements

Compound

Compound is an Ethereum-based DeFi protocol that allows users to borrow assets and earn interest on deposits. Compound is considered difficult to use — but the platform is one of the most trusted names in the ecosystem!

Pros & Cons

• 
  One of the most trusted projects in DeFi.
• 
  Low interest rates on loans (borrowing stablecoins like USDC have APRs under 5%).
• 
  No minimum requirements for borrowing.

• 
  Supports fewer assets than other platforms.
• 
  Difficult to use for beginners.

Learn More

Best for CRO stakers

Crypto.com

Crypto.com is one of the world’s most well-known exchanges. In addition to its other services, the platform offers lending and borrowing services for users!

Pros & Cons

• 
  Accepts 16 different cryptocurrencies as collateral — including BTC, ETH, CRO, and USDT!
• 
  Integrated with the Crypto.com ecosystem.
• 
  1% APR available for users who stake more than 100,000 CRO (Crypto.com’s native cryptocurrency).
• 
  Take out a loan as low as $100!

• 
  Interest rates are higher for users who are not staking CRO.
• 
  Crypto.com is a centralized platform. If you’re looking for a DeFi loan, it may not be the right option for you.

Learn More

Best for flexible loans

Summer.Fi

Summer.Fi is a DeFi protocol that allows users to lend and borrow crypto-assets. The protocol — formerly known as Oasis.app — is part of the Maker ecosystem. Summer.Fi is a trusted dApp that offers low APRs for users.

Pros & Cons

• 
  Low APR — typically below 3%!
• 
  Support for multiple different cryptocurrencies as collateral — including ETH and wBTC!
• 
  No repayment deadline or minimum payments. You can repay at your own pace as long as you meet the collateral requirements.

• 
  Must monitor your position to prevent potential liquidations.
• 
  Difficult to use for users new to crypto.

Learn More

Best for commercial loans

Unchained

Unchained is a centralized financial services provider that offers loans on Bitcoin for businesses! While APRs are relatively high and minimum loans are relatively high, Unchained is a great option for crypto commercial loans.

Pros & Cons

• 
  Slick, user-friendly interface.
• 
  Quality customer support.
• 
  Unchained Capital does not invest your collateral. This limits the risk of platform failure.

• 
  Currently, Unchained Capital only supports Bitcoin.
• 
  Unchained Capital has relatively high APRs (more than 14% at the time of writing).
• 
  Unavailable in New York, Louisiana, Montana, North Dakota, South Dakota, New Mexico, Tennessee, and Idaho.
• 
  No longer supports individual loans. $150,000 loan minimum.

Learn More

Best for no monthly payments

Wirex

Wirex is a UK-based platform founded in 2014. The platform supports more than 25 cryptocurrencies as collateral, including Bitcoin and Ethereum! The platform gives you stablecoin up to 70% of the value of your cryptocurrency, with a 6-month payment deadline.

Pros & Cons

• 
  24/7 customer support
• 
  No fixed monthly payments
• 
  Funds protected by Fireblocks — a digital asset custody platform.
• 
  User-friendly interface

• 
  Only stablecoins available to borrow
• 
  Centralized platform risk
• 
  Wirex loans are not available in the USA
• 
  Collateral liquidated if loan is not repaid within 6 months

Learn More

Best for high LTVs

YouHodler

YouHodler is a centralized platform that offers exchange services and crypto-backed loans. While the platform has faced security issues, it offers high LTVs and has been praised for being user-friendly!

Pros & Cons

• 
  High loan-to-value (LTV) ratios (up to 97% of the loan value).
• 
  User-friendly interface.
• 
  Supports 50+ assets as collateral — including BTC and ETH.

• 
  In 2019, YouHodler experienced a data breach — exposing data on millions of customers.
• 
  APRs can vary significantly based on multiple factors — such as LTV and the selected cryptocurrency.
• 
  Not available in the US.

How do crypto loans work? 

Crypto loans allow users to borrow fiat currency or other cryptocurrencies using their crypto holdings as collateral. The borrower agrees to pay back the loan with interest over a specified period, and once repaid, they regain access to their collateral.

However, if the value of your collateral falls under a certain loan-to-value ratio, it’s possible that your collateral will be liquidated. 

Crypto loans offer advantages over traditional loans — most loan providers do not require a credit check. However, cryptocurrency’s volatility means there is greater risk of liquidation during a market downturn. 

Types of crypto loans 

There are two types of cryptocurrency loans: CeFi and DeFi. 

1. CeFi: Loans from centralized platforms like Binance. 
2. DeFi: Loans from decentralized protocols like Aave. 

What is a CeFi loan? 

In a CeFi loan, a centralized platform takes control of your collateral. This means that the lender holds the private keys to your crypto-assets. 

Centralized platforms do offer some advantages. Centralized platforms offer easy-to-use interfaces and customer support  — which may make them a better option for beginner investors. However, users should be cognizant of the risks associated with centralized lenders.

In recent years, centralized lenders have faced criticism for mismanaging customer funds. 2022 saw multiple cryptocurrency lenders go bankrupt — including BlockFi, Voyager, and Celsius. 

Because so many centralized lenders have faced financial issues, most popular centralized lending platforms today — like Unchained — are directed towards high net-worth individuals. 

What is a DeFi loan? 

Decentralized protocols don’t require third-party platforms taking custody of your funds. dApps (decentralized applications) use smart contracts — allowing you to receive a loan from other users without the need for a middleman.

DeFi protocols don’t have the option to give users fiat currency. Instead, loans are paid out in stablecoin. 

DeFi protocols are a great option for users who are wary of centralized platforms and who are looking for transparent lending options. 

“The #1 thing people need to understand about DeFi loan platforms is the risk of a market downturn. It’s possible you could go to sleep, then the next thing you know your crypto is down 20% and you risk liquidation. That makes it important to actively manage your position and make sure you don’t risk large dollar amounts.” - Jordan Bass, Taxing Cryptocurrency 

What’s the point of a crypto loan? 

Let’s walk through a couple of popular reasons for taking out a crypto loan: 

Tax avoidance: Because borrowing against your crypto as collateral isn’t a true disposal of your tokens, it also doesn’t trigger a capital gains tax event. This means that you can gain access to liquidity without selling your cryptocurrency. 

‍Trading leverage: If you are bullish on the long term prospects of Bitcoin, you could take out a loan against your existing crypto holdings and then use the loan proceeds to buy more crypto. This “leverages up” your exposure to cryptocurrency (but also increases risk!)

What are the risks of crypto loans? 

Before you take out a crypto loan, it’s important to understand the potential risks. 

• Volatility: The volatile nature of cryptocurrencies means collateral can quickly decrease in value, leading to potential liquidation.
• Smart Contract Vulnerabilities: DeFi protocols rely on smart contracts, which, if not coded correctly, can be exploited.
• Platform Risks: Centralized platforms can face issues like hacks, mismanagement, or regulatory challenges. In recent years, crypto loan providers like BlockFi have gone bankrupt.
• No FDIC Protection: Unlike US dollars, cryptocurrency is not protected by the FDIC. In the case of an exchange bankruptcy, you may lose access to your cryptocurrency. 

Are crypto loans worth it? 

Cryptocurrency loans can be worth it — but it’s important to be aware of the risk of liquidation. 

Because your collateral can be liquidated, you should never deposit more than you can afford to lose and actively manage your position to avoid following below minimum requirements.

Crypto loans without collateral 

There are a few options for borrowing crypto loans without collateral. 

What are flash loans? 

Flash loans allow users to borrow cryptocurrency without collateral. Flash loans allow users to borrow cryptocurrency, make a profit on a transaction, and pay back the loan instantly. If you cannot pay back the loan instantly, the loan will not be approved. 

Flash loans typically require advanced coding and smart contract knowledge and are typically recommended for experienced investors only.

What are other ways to get non-collateralized loans? 

While providers like Atlendis allow users to borrow loans without collateral, these are typically available for institutional investors only.

How to choose a crypto loan provider 

Looking for a crypto loan provider? Here are some factors you should consider before taking out a loan.

How are crypto loans taxed? 

Generally, taking out a loan is not considered a taxable event. However, some transactions may come with tax implications. 

Taking out a DeFi loan: Some DeFi protocols require users to trade one cryptocurrency for another to take out a loan. For example, taking out a loan on Ethereum or Compound requires you to exchange ETH for cETH. Though the IRS has not yet provided guidance on these transactions, it’s possible that this will be considered a crypto-to-crypto trade subject to capital gains tax.

Forced liquidation: If your collateral is liquidated, you’ll incur a capital gain or loss depending on how the price of your collateral has changed since you originally received it. This is true even if you do not receive the proceeds of the liquidation. 

Crypto interest deduction: If you use your loan for business or investment purposes, you may be able to deduct your interest fees on your taxes. This deduction is not available if you used the loan for personal purchases. 

For more information, check out our guide to cryptocurrency loan taxes. 

Crypto loan alternatives

Not comfortable using your cryptocurrency as collateral? Here are some alternatives you can consider if you’re in need of a loan. 

Conventional loan: If you’re looking for a conventional loan, you can receive one from a bank or credit union. Typically, getting approved for a conventional loan is a lengthy process that involves a credit check. However, conventional loans do offer some benefits — such as FDIC protection for your collateral.

Home equity loan: A home equity loan allows you to receive a loan using your home as collateral. However, if you default on your home equity loan, the lender can foreclose on your home.

Small personal loans: In need of a small loan? Apps like CashApp allow you to borrow between $20-200!