6 Best Crypto Loans — Top Bitcoin Lending Sites in 2021
The world of crypto has opened up greatly around the world, and many people have found ways to make their life better with cryptocurrencies. Imagine not having to worry about getting finance at short notice because you know the best crypto lender available or earning extra income because you can loan your bitcoin to other users for a fee.
This review of the best bitcoin lending sites is based on our in-depth analysis of the leading service providers. We have also subjected these crypto lenders to our unique algorithm in order to rank them efficiently.
The Best Bitcoin Lending Platforms
The crypto lenders on our list include:
- BlockFi — Up to $250 Bonus;
- YouHodler;
- Lendabit;
- XCoins;
- Coinloan;
- Celsius Network
What is Crypto/BTC Loans?
Crypto loans are made available to customers who deposit their tokens as collateral in order to access some short-term liquidity. Most platforms will peg the LTV (loan to value) rate at 55 to 60 percent so that there is enough spread to take care of price volatility.
How it works
The approach to crypto lending is quite straightforward. A customer needs to have the digital currency that is accepted by the lending platform in order to secure a loan. Apart from registering on the platform, the user has to deposit the crypto into the wallet provided by the lender.
When the deposit made is verified, the borrower can navigate to the account dashboard, specify the amount requested and access the loan. Each customer can choose the preferred token for pay-out as long as it is among what I supported by the chosen platform.
For example, having deposited your bitcoin into the wallet address on the platform, you can choose to be paid in XLM or BCH.
The Difference Between The Crypto Lenders
Each lender has a preferred lending model, which in most cases will not be so different from what the competitors also offer. While the difference will be in the little details like interest rate, processing time, crypto available to lend, and crypto used for disbursement, they all present a similar outcome. The customer is able to lend crypto or access the loans.
In terms of operational model, some platforms are peer to peer, making it such that other customers fund the lending process. Others are outright lending platforms, in which case, the platform provides the crypto loan to users. In addition, a platform could also provide loans and also accept deposits so that the customer could earn a passive income in interest payments.
How To Take Bitcoin Loan
In order to take a bitcoin loan, the customer needs to take the first steps to register on the platform. As a registered user, you are now able to transact with ease.
· When borrowing
You simply deposit your crypto here as collateral, and depending on how much you want, your crypto loan gets paid out in stablecoins, fiat or token that you choose.
· When lending
As a lender, for the deposit of bitcoin or altcoin that you make, you earn interest, and each month or week, your wallet gets filled.
Avoiding the Scams
As exciting as crypto is, there are lots of scams making their way around. And same applies to lend and borrowing your favorite tokens. Do not rush to a platform that promises mouth-watering rates that is impossible to match in the marketplace. Fabulous offers are often the hallmark of Ponzi schemes and scams. Stay away from any platform promising you millions in payouts just by depositing your crypto or for any reason.
And just like many crypto evangelists post on social media, a platform that does not give you private keys to control your wallet is out to fleece you. You need the private keys to see what is left as your balance, and to be able to send your crypto. Do not allow yourself to be deceived.
The Best Bitcoin Lending Sites
1. BlockFi — Best crypto lending platform
This lender is the brainchild of the duo of Zac Prince and Flori Marquez, renown for successfully topping the $20 million mark in their fundraising. Several big names including Coinbase Ventures-backed this startup when it started off.
Without a shadow of a doubt, BlockFi ranks as the leading bitcoin lender, and the basis for this is examined closely below.
Custody of assets here is handled by Gemini depository services. With insurance provided and an excellent track record that is public knowledge, Gemini puts the mind of BlockFi users at ease. This depository is renowned among the best crypto lending platforms as a custodian.
Main Currency
You can only trade PAX, GUSD, LTC, BTC and ETH
Platform Charges
The interest rate here is as high as 6 percent if up to 5 BTC in a deposit. Rates are higher for ETH and BTC than another crypto. Lending rate for ETH is up to 4.5 percent
Deposit Limit
All users are welcome to deposit as little or as much as they have. No restrictions on what to deposit.
As low as $100 is accepted in deposits
Loan Duration
30 days minimum and renewable.
The Pros
· Borrowers are charged 4.5 percent when they use the platform. This low rate is a plus as better money flows are recorded to boost liquidity with the low rates available.
· Excellent depository company record
· Offers Bitcoin Rewards Credit card
The Cons
· Lower interest rates for bigger deposits over 6 BTC. Most depositors would take the 3.5 percent rate as a good deal.
· No demo accounts feature
The Payout terms
Interest payments are done monthly using the digital asset that you have deposited. The interest is deposited straight to your account each month that your deposit is in the books.
You are entitled to one free withdrawal for stablecoin and crypto every month.
Verdict
BlockFi offers an LTV of up to 50 percent and is a trusted platform for crypto loans. Many people agree that it is the best crypto lending platform for its ease of use, low rates, and efficiency.
2. YouHodler — Best crypto lending Rate
YouHodler might be a newcomer but it packs a lot of punch in its reputation. It operates out of Western Switzerland and carries the Crypto Valley Association badge
This platform offers exciting rates that top 12 percent on APR. The Top 12 crypto are accepted as collateral here when you are borrowing and guess what? The LTV rate is as high as 90 percent.
Main Currency
Trading is limited to USDC, TUSD, BNB, BTC, and PAX
Platform Charges
BTC deposit attract up to 4.8 percent in interest APR like most of the Best crypto lending platforms
Deposit Limit
As low as $100 is accepted in deposits
Loan Duration
Up to 60 days.
The Pros
· Offers rate flexibility
· Bank withdrawals and credit card payments are supported
· Pays interest on BNB deposits
· A lender can earn interest on up to 80 percent of deposits while actively trading the balance 20 percent as a multi-hodl structure.
· Users are free to try out demo accounts before they start active trading.
The Cons
· Strict adherence to KYC/AML requirements, which is no problem for clean investors
· Fewer token options
The Payout terms
Monthly payments are the norm here. Payment is made using any of stablecoin, fiat or crypto
Verdict
YouHodler is reputable and operating out of Switzerland, it has the reputation that matches this global financial center. YouHodler has the full marks for the best crypto lending rate among crypto loan providers.
3. Lendabit — Best P2P crypto lending Site
LendaBit operates as a P2P crypto lending platform that supports crypto-backed loans. This platform supports short to long-term lending using some of the best-known cryptocurrencies. It has simplified the process of crypto loans and offers a secured platform with attractive terms.
Main Currency
Trading is limited to BTC, ETH, USDT
Platform Charges
O percent charge for up to 45 days, and 9 to 12 percent APR for longer periods.
Deposit Limit
As low as 0.0025 BTC and as high as 535 BTC
Loan Duration
Up to 3 years
The Pros
· Free for short-term lending up to 45 days
· BitGo supported wallet services
· Security tools in place for user protection
The Cons
· Just a few crypto to trade here
· No fiat supports
The Payout terms
Charges are due from 45 days. There are no prepayment penalties in place.
Verdict
Lendabit is a trusted crypto loans platform with commendable credibility. With BitGo providing wallet services, it has the advantage of a known name in the business to partner with. It surely passes as the best P2P crypto lending site.
4. XCoins — Popular P2P crypto lending Site
XCoins commenced operations in 2018 as its creator, Sergey Nikitin sought to integrate PayPal into the crypto lending trade. Here, lenders who borrow BTC with PayPal payments matched at the ruling interest rates at each level.
Main Currency
Bitcoin is the main trade here.
Platform Charges
10 to 15 percent in interest charges
Deposit Limit
Deposit as low as $20
Loan Duration
Flexible terms apply. Lenders set their acceptable terms and single transactions are capped at $1,000.
The Pros
· Over 175 countries supported
· 50 percent guarantee for lenders
· Instant access to loans
The Cons
· Only Bitcoin is supported
· No insurance for users
The Payout terms
Operates as a P2P platform that allows lenders to set their terms although interest is paid out at the end of the loan tenor. With payments made out in PayPal, debit or credit cards, access to interest or withdrawals is simple and easy.
Verdict
XCoins is a simple trading platform that supports crypto lending. It might not be sophisticated but it gets the job done. It ranks as a popular P2P crypto lending platform.
5. Coinloan — Simple P2P crypto lending Site
Coinloan is not an incorporated company but it commenced operations in Estonia in 2017. Its strength lies in offering peer to peer services in a secure and efficient environment. New users will find this platform easy to use with simple setup procedures.
Main Currency
Supported currencies include Paxos, TUSDT, EURO and USDT
Platform Charges
10.5 percent interest rate applies
Deposit Limit
Deposit as low as $20
Loan Duration
Flexible terms apply. Lenders set their acceptable terms and single transactions are capped at $1,000.
The Pros
· No withdrawal and deposit fees
· Up to 6.5 percent on BTC, 5.34 percent for LTC and 5.13 percent for ETH
· Each user gets a unique loan agreement
The Cons
· Quite a young company
· Customer service is sometimes unavailable
The Payout terms
Payout is normally conducted using SEPA, ADVCash or SWIFT. The loan terms here not fixed and depends on the lender.
Verdict
Coinloan might be a newcomer in the P2P lending scene but it is efficient, and customers applaud the ease of use offered by the platform. Anyone who looks out for a simple crypto loan site will find coin loan commendable.
6. Celsius — The Modern Crypto Lending Site for passive income
Celsius is a company that was founded in 2017, and its successful ICO in 2018 gave the company over $50 million in token sales. The company’s reputation has soared over the last few years with dependable service, ease of use and multi-platform access giving it the top marks.
This Alex Mashinsky-led company is a market shaker with loan origination said to be in excess of $1.2 billion.
Main Currency
Supported currencies include BTC, DASH, BCH, ETH and EOS, among others
Platform Charges
Loan charges can be 4.95% APR for LTV of 25 percent. For LTV of 50 percent, rates are as high as 8.95% APR
Deposit Limit
No minimum deposit here as the platform is both a savings and lending app.
Loan Duration
Clearly stated on its website, the tenor can be 6, 12, 18, 24, 30, or 36-months.
The Pros
· A global coverage
· High rates for savings, up to 18.5 APR
· Access to loans is easy and fast
The Cons
· Interest is paid weekly
· Bonus is limited to the use of its native token
The Payout terms
Celsius operates a payout that is flexible. You are free to withdraw your earnings with no restrictions. Saving your tokens as CEL on the platform earns you loyalty rewards in loan discount and bonus earnings that boosts your income levels.
Verdict
Celsius Network has proven to be a trusted platform for crypto lending and savings. With its huge loan completion size over the last three years topping the $1 billion mark, it deserves the pride of place as the best crypto lending platform for passive income.
FAQ
1. Are crypto loans cheap?
Yes. Why many people could answer this question differently, depending on where you live, most crypto lenders have rates that compete globally. With less than 5 percent rates on some short-term loans or zero percent for loans under 45 days, some attractive terms are available.
2. Can I get a crypto loan without verification?
Some P2P lending sites allow account opening without verification. As long as you can provide the needed deposit that covers the LTV specified, you can access a crypto loan. Withdrawing the loan for fiat or any other crypto is commonly supported on the leading crypto lending platforms.
3. How do I get my crypto collateral back?
You will be able to access your crypto collateral when you pay your crypto loan. The crypto deposit will be activated by the platform for withdrawals on completion of payment. You can then sell your crypto, transfer, or withdraw it.
4. Is BTC loan without collateral possible?
Yes, you will be able to get a BTC loan on crypto lending platforms without collateral if you have enough stablecoin or crypto that matches the LTV ratio. Some LTV can be 50 percent or lower, depending on the platform.
5. Are crypto lending sites safe?
The best crypto lending sites are safe. Some of these sites have a turnover in excess of $1 billion to date, with Celsius Network as a leading example. Such huge volumes cannot be managed by untested and unsafe operational systems.
The Bottom line
Crypto lending sites have become a popular financing option for many people around the globe. With the ease of use and minimum paperwork required, they appeal to a growing population of tech-savvy people who require less bottleneck to get things done. The need to access credit is met by the crypto lending platforms that cater to people who are under-banked, un-banked, and who require the service.
