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6 Best Platforms To Borrow Against Crypto in 2024

10 mins
Updated by Maria Petrova
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The ability to borrow against your crypto holdings has become a game-changer for investors and enthusiasts. Whether you want to leverage your digital assets for financial opportunities or 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 sector 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 cryptocurrency, secures the loan, and the platform automatically enforces loan terms. 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. Coinbase

Leverage your Bitcoin for immediate cash
8.7%
LTV ratio
Up to 40%
Assets
1
Loan term
Flexible

2. Wirex

Use your BTC or ETH as collateral
APR
2%
LTV ratio
Up to 70%
Assets
25+
Loan term
Flexible

3. YouHodler

Withdraw instantly to credit cards, banks or exchanges
APR
3%-26%
LTV ratio
Up to 97%
Assets
50+
Loan term
Up to one year

4. Nexo

Borrow at just 0% interest
APR
0-15.9%
LTV ratio
Up to 90%
Assets
60+
Loan term
Flexible (up to one year)

5. Binance

Interest is calculated based on hours borrowed
APR
Up to 20%
LTV ratio
Up to 70%
Assets
300+
Loan term
Up to 180 days

6. Bake

Fixed interest rate of 5%
APR
5%
LTV ratio
50%
Assets
DUSD
Loan term
Flexible

Can I get a loan with crypto?

crypto loan web3 cryptocurrency

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 can get funds while keeping your digital assets. 

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

Benefits of getting a crypto loan

Taking out a loan with crypto offers several unique benefits that traditional loans may not provide. Here are the advantages of opting for a crypto loan:

  • No credit check: Lenders typically do not require a credit check since you secure the loan with your crypto assets.
  • Quick approval: You can often get approval and process the loan faster than traditional loans.
  • Retain ownership: Using your crypto as collateral allows you to retain ownership and benefit from potential appreciation.
  • Flexible terms: Many crypto lenders offer flexible repayment terms and interest rates to fit your financial needs.
  • Access to liquidity: A crypto loan provides liquidity without forcing you to sell your assets, enabling you to leverage your holdings for other investments or expenses.

Understanding how to take out a loan with crypto helps you maximize these benefits while maintaining control over your digital assets.

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 than collateralized loans. 

Flash loans are a type of uncollateralized loan that is 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. You must repay the loan with flash loans in the same transaction you borrowed. It doesn’t go through if you can’t repay the loan within that transaction. 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, to repay the loan quickly.

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 sector. 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?

Various factors, including loan terms, interest rates, and collateral requirements, must be evaluated when considering the best platforms for borrowing against crypto. 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?

When should I get a crypto loan?

What are the benefits of a crypto loan?

Can I get a crypto loan without collateral on Coinbase?

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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...
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