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5 Best Platforms To Borrow Against Crypto in 2023

8 mins
Updated by Artem Gladkov
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The ability to borrow against your crypto holdings has become a game-changer for investors and enthusiasts alike. Whether you want to leverage your digital assets for financial opportunities or simply need quick access to funds without selling your crypto, the right platform can make all the difference. In this guide, we explore the best platforms to borrow against crypto, offering a glimpse into the world of crypto loans, their benefits, and where you can find the most reliable options to meet your financial needs.

How do crypto loans work? 

Crypto loans fall into two main categories: custodial (CeFi) and non-custodial (DeFi). Custodial loans involve a central entity holding your collateral and controlling your assets’ private keys, limiting your access. In contrast, DeFi loans use smart contracts to enforce terms, letting you keep control unless you default. Decentralized loans are transparent but often have higher interest rates. 

Crypto loans: Yield App

Unlike traditional loans, crypto loans don’t require credit checks. Collateral, usually in the form of cryptocurrency, secures the loan, and loan terms are automatically enforced by the platform. Over-collateralization is common to protect lenders and reduce market volatility risk.

There are also crypto loans without collateral. These are the flash loans, which involve borrowing and repaying tokens within seconds for specific transactions. Be cautious and research carefully, as this space is still evolving and can attract scammers. If an offer seems too good to be true, it probably is.

What are the best platforms to borrow against crypto?

1. Wirex

Use your BTC or ETH as collateral
LTV ratio
Up to 70%
Loan term

2. YouHodler

Withdraw instantly to credit cards, banks or exchanges
LTV ratio
Up to 97%
Loan term
Up to one year

3. Nexo

Borrow at just 0% interest
LTV ratio
Up to 90%
Loan term
Flexible (up to one year)

4. Binance

Interest is calculated based on hours borrowed
Up to 20%
LTV ratio
Up to 70%
Loan term
Up to 180 days

5. Bake

Fixed interest rate of 5%
LTV ratio
Loan term

Can I get a loan with crypto?

Yes, you can get a loan with crypto. Some platforms allow you to use your cryptocurrency as collateral to borrow money or stablecoins. This means you don’t have to sell your crypto, and you can get funds while keeping your digital assets. 

Just remember, it usually involves certain terms and conditions, like repaying the loan with interest and maintaining enough collateral to cover it. So, while it’s possible, make sure you understand how it works before getting a crypto loan.

Here is how to get a crypto loan:

  • Choose a crypto lending platform and create an account by completing the KYC process
  • Deposit collateral (Transfer your chosen cryptocurrency assets to the lending platform as collateral)
  • Apply for a loan (Select the loan amount and terms you want) 
  • Receive funds (crypto or fiat)
  • Use the funds (trading, investment, or other financial needs)
  • Monitor collateral  to ensure it remains above the required level to avoid liquidation
  • Repay the loan and interest, and your collateral will be returned to you.

Can I borrow crypto without collateral?

Yes, you can borrow crypto without collateral, but it depends on the lending platform. Some platforms offer unsecured spot crypto loans where you don’t need to provide collateral, but they might have stricter eligibility criteria or higher interest rates compared to collateralized loans. 

Flash loans are a type of uncollateralized loan. These are available only on decentralized apps (DApps). Look for platforms with the best DeFi rates

Unlike traditional loans, where you need to provide collateral, flash loans allow you to borrow a cryptocurrency instantly without putting up any collateral. With flash loans, you have to repay the loan in the same transaction you borrowed. If you can’t repay the loan within that transaction, it doesn’t go through. This means you need to have a specific plan in place to use the borrowed funds for a profitable purpose, like arbitrage or other trading strategies, in order to repay the loan quickly.

In essence, flash loans are a way for experienced cryptocurrency users to access significant amounts of capital for a very short period. They can be a powerful tool for financial strategies in the crypto world. However, they come with high risk and require a good understanding of the markets and how they work.

What is the best platform to borrow against crypto?

When considering the best platforms for borrowing against crypto, it’s essential to evaluate various factors, including loan terms, interest rates, and collateral requirements. Some platforms offer the convenience of crypto loans without collateral, making them accessible to a broader audience. 

Additionally, factors like loan disbursement speed, lender reputation, and fees are crucial in choosing the right platform for your crypto borrowing needs. Ultimately, selecting a platform that aligns with your financial goals and risk tolerance is key to a successful borrowing experience in the crypto space.

Frequently asked questions

Are unsecured crypto loans safe?

How do crypto loans work?

How to get a free bitcoin loan without collateral?

Can I get a crypto loan without collateral on Binance?

Can I get a loan on my cryptocurrency?

How to get a flash loan?

Best crypto platforms in Europe | December 2023


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Iulia Vasile
Iulia Vasile is a seasoned professional in the cryptocurrency and blockchain industry, working full-time in the field since 2017. With a background in computer engineering, she has the unique ability to write about complicated topics, including DeFi, NFTs, trading, and AI, in a way that is easy to understand. Iulia learned multiple programming languages while completing her Software Engineering degree in Bucharest at Politehnica University. Iulia brings her expertise and personal...