Crypto Lending And Utilising Your Holdings As Security

A new type of financial offering called crypto loans, has emerged along with the rise of cryptocurrency and rumor has it, it's less complicated than getting a traditional loan at your favorite local bank.


There are countless ways to do crypto lending, and while it offers tempting high interest rates, let's not forget that like any other investments, there are significant risks that come with it.


Listed below are a couple of lending platforms that caught our eye.

  1. Binance

  2. BlockFi

  3. Celsius

  4. CEX.IO Loan

  5. CoinLoan

  6. Crypto.com

  7. KuCoin

  8. LendaBit

  9. Nebeus

  10. Nexo

  11. Salt Lending

  12. YouHodler

 

Binance

  • Location: Ta’ Xbiex, Malta

  • Founded: 2017 by Changpeng Zhao (Chief Executive Officer)

  • Core Service: Binance offers loans in a variety of crypto assets, with thresholds varying depending on your selection. You can stake your own crypto holdings as collateral, at an average loan-to-value (LTV) rate of 60% (this increases to 65% when using Bitcoin), while capital can be borrowed for anywhere between seven and 180 days

  • Interest Rates: The site displays hourly and daily interest rate to agreements. Daily interest rates start at 0.0500% for seven-day agreements, extending to 0.0990% for 180-day loans.

  • Asset Range: You can borrow capital in up to 41 separate crypto assets, while 15 can also be used as collateral (including EUR).

  • Other Services: Binance offers a range of alternative services to clients, including locked staking and competitive savings accounts. There are also guaranteed and high-yield returns available through the platform

  • Apply here

 

BlockFi

  • Location: New York City

  • Founded: 2017 by Zak Prince (Chief Operating Officer)

  • Core Service: BlockFi enables you to borrow a lump sum in USD by using your crypto holding and supported tokens as collateral. More specifically, you’ll have to commit half of the value of your loan amount as collateral, at a loan-to-value (LTV) ratio of 50%. You can also borrow $5,000 and upwards through the platform.

  • Interest Rates: You can borrow cash at rates as low as 4.5% APR, with this varying depending on the length of your agreement.

  • Asset Range: While you can only borrow USD through the platform, four separate crypto assets are currently accepted as collateral. These include Bitcoin, Ether, Litecoin and PAXG.

  • Other Services: The platform also offers a high-yield BlockFi Interest Account (BIA), through which your crypto assets can earn up to 8.6% APY. Similarly, BlockFi offers a low-cost trading platform that allows users to buy, sell or exchange supported assets.

  • Apply here

 

Celsius

  • Location: London

  • Founded: 2017 by Alex Mashinksy and S. Daniel Leon

  • Core service: Access cash and crypto loans from anywhere between 6 and 36 months, with the option to extend or repay your loan early without incurring fees or penalties

  • Interest rates: Celsius offers variable interest rates starting from around 2.5% APR, with CEL tokens affording you the lowest available rate. These competitive rates are augmented by zero transaction fees and the ability to use your crypto holdings as collateral against any loan. Loan paybacks start from 0.75% APR

  • Asset range: Borrow against a diverse range of 34 tokens, including the Celsius (CEL) token

  • Other services: You can currently hold any supported crypto balance in your account and earn a $500 reward. The platform’s rate of return is also between 7 to 10 times higher than their competitors, in the case of Bitcoin and Ethereum interest rates

  • Apply here

 

CEX.IO Loan

  • Location: London, Gibraltar, New Jersey

  • Founded: 2013, Oleksandr Lutskevych

  • Core Service: Borrow up to $100,000 in either USD, EUR, or the USDC stablecoin, using one of five supported crypto assets as collateral. Borrowing at the minimum level of $500 will trigger repayment terms of seven days, while higher amounts of cash may be accessed upon request over a period of 12 months

  • Interest Rates: Variable between 8% and 14%, depending on the relevant loan-to-value (LTV) equation. This ranges from 30% to 60% based on the crypto asset used as collateral

  • Asset Range: You can borrow funds in two different fiat currencies and one USD-backed stablecoin, while using five crypto assets as collateral (BTC, ETH, LTC, XLM and LINK)

  • Other Services: You can also buy, trade and exchange selected crypto assets on CEX.IO Loan, while the platform’s staking program enables you to earn rewards simply for holding tokens in your account

  • Apply here

 

CoinLoan

  • Location: Tallinn, Estonia

  • Founded: 2017 by Alex Faliushin

  • Core service: Borrow cash and coins using any of the 13 compatible tokens as collateral, at up to 70% of the value of your holdings. Capital can be borrowed for between seven hours and three years

  • Interest Rates: Interest rates start as low as 4.95% on the CoinLoan platform, with this applying to the minimum loan-to-value (LTV) limit of 20%

  • Asset Range: In addition to the 13 supported crypto assets, you can also borrow cash funds in currencies including USD, GBP, RUB and EUR

  • Other services: You can also earn on your deposits and holdings at CoinLoan, at variable rates of between 7.2% and 12.3% over time (depending on your chosen asset)

  • Apply here

 

Crypto.com

  • Location: Switzerland, Hong Kong and Singapore

  • Founded: 2016 by Kris Marszalek

  • Core Service: Borrow up to 50% of your crypto collateral, receiving funds in your choice of PAX, TUSD, USDC or USDT. You can utilise CRO, BTC, ETH, LTC, XLM, EOS, ADA, ALGO, ATOM, VET, LINK, EBTC XTZ and DOT as collateral, while you must make a minimum deposit equivalent to $1,000 to qualify for the service

  • Interest Rates: You’ll borrow capital at an average rate of 8% per annum, so a minimum deposit of $1,000 will afford you $500 in credit and see you accrue average interest payments of $3.33

  • Asset Range: All of the assets in which you can receive credit are regulated stablecoins, which are pegged to the value of the USD.

  • Other Services: You can also buy and sell crypto assets on the exchange, while staking certain tokens and earning up to 14% interest on your holding. You can also pay and get paid here through the Crypto.com Pay platform, which offers instant settlements and zero gas fees.

  • Apply here

 

KuCoin

  • Location: Hong Kong

  • Founded: 2013 by Michael Gan, Eric Don, Top Lan, Kent Li, John Lee, Jack Zhu and Linda Lin

  • Core Service: You can currently borrow capital on a wide array of crypto assets, from tokens such as BTC to various stablecoins. You can borrow for a period of 7, 14 or 28 days, at loan-to-value (LTV) ratios of 25%, 50%, 75% and 100%. Currently, a BTC loan can be secured at a rate of just 0.008% for seven days, creating a competitive total loan cost of just $30 per token

  • Interest Rates: Interest rates vary depending on the asset that you borrow in and the duration of your loan. For example, a 14-day loan in BTC will be charged at 0.009%, whereas the rate for this asset increases to 0.01% over 28 days

  • Collateral Range: At present, you can borrow capital against a total of 74 different crypto assets, including stablecoins like USDT

  • Other Services: You can also lend out your own crypto tokens to KuCoin users, with the same 74 assets supported by the site. Lending in BTC provides annualised returns of 3.28% over seven, 14 and 28-day agreements, with this offer a little less profitable than some of the platform’s competitors

  • Apply here

 

LendaBit

  • Location: Tuen Mun, Hong Kong

  • Founded: 2018 by Deniss Moscenko (Chief Executive Officer)

  • Core Service: LendaBit offers peer-to-peer, crypto-backed loans in Tether and Bitcoin, ranging from 0.025 BTC and 535 BTC. You can borrow for a period between one day and three years accordingly, while the platform offers loan-to-value (LTV) ratios of between 50% and 80%. LendaBit also applies a fee that equates to 1% of the loan amount to process the agreement

  • Interest Rates: BTC (0-5) 6%, BTC (more than 5) 3.2%, ETH (0-500) 4.5%, ETH (more than 500) 2.0%. However, you’ll pay 0% on your loan for the first 45 days as a new applicant

  • Asset range: Bitcoin, Ethereum, and Tether can be used as collateral

  • Other Services: This peer-to-peer platform doesn’t offer any other services to users, but there is a process that rewards borrowers with 20% of any subsequent system fee when they refer a new client

  • Apply here

 

Nebeus

  • Location: London, UK

  • Founded: 2015 by Sergey Romanovskiy (Chief Executive Officer)

  • Core Service: Source an instant cash loan and borrow between 50% and 80% of your crypto holding. You can borrow between $50 and $250,000, depending on the value of your collateral, over the course of anywhere between one and 36 months.

  • Interest Rates: Interest rates start from 6% on the platform, including fees. So, securing a one-month, $1000 at an LTV rate of 50% will see you repay just $1,005 in total.

  • Asset Range: You can borrow in USD, EUR and GBP, while Ethereum and Bitcoin are currently supported as viable collateral options

  • Other Services: Nebeus offers an in-built exchange through which you can transfer BTC and ETH tokens, along with a $100 million insurance policy.

  • Apply here

 

Nexo

  • Location: Switzerland

  • Founded: 2017 by Antoni Trenchev (Managing Partner), Georgi Shulev (Managing Partner) and Kosta Kantchev (Managing Partner)

  • Core Service: Borrow anywhere between $50 to $2 million across 43 accepted global currencies, without selling your holding and using your crypto assets as collateral. A total of 18 crypto assets are currently supported by the platform, including stablecoins such as Bitcoin Cash, Litecoin, Stellar, NEXO Token, USD Coin and PAX.

  • Interest Rates: Interest rates vary according to Nexo’s unique loyalty program. There are four levels in total, with base users who less than 1% NEXO tokens available to borrow at rates of 13.9%. At the higher membership level (Platinum), you’ll need to have at least 10% of your portfolio in NEXO tokens to unlock borrowing rates from as low as 6.9%

  • Other Services: You can also stake assets and earn on your holdings at Nexo, as much as 8% on selected cryptocurrencies and 12% on certain stablecoins (Tether, TrueUSD, USD Coin, PAX, DAI, and HUSD). The platform also has a built-in exchange that supports more than 100 crypto assets and fiat pairs

  • Apply here

 

Salt Lending

  • Location: UK, Switzerland and the US

  • Founded: 2016 by Benjamin Yablon, Blake Cohen, Caleb Slade and Shawn Owen

  • Core Service: With Salt Lending, you can borrow upwards of $5,000 while using your crypto holdings as collateral. Personal loans are available from between three and 12 months, with loan-to-value (LTV) rates ranging from 30% to 60%. There are also 0% origination fees, withdrawal fees, prepayment fees, and bounced ACH fees (for US bank transfers)

  • Interest Rates: Interest rates start from 5.95%, rising up to 19.95% on agreements with an LTV measure of 60%

  • Asset Range: You can borrow in US dollars, while utilising a combination of Bitcoin, Ether, Litecoin, Bitcoin Cash, Paxos, Pax Gold, USD Coin and True USD for collateral.

  • Other services: You can also take out a business loan at Salt Lending, starting from $5,000 and with an LTV range up to 70%. Interest rates are similar, although loans taken out at the highest LYV will be charged at 22.95%. The platform also offers a stabilisation feature to preserve the value of your crypto portfolio even as the wider market declines

  • Apply here or here

 

YouHodler

  • Location: Lausanne, Switzerland

  • Founded: 2017 by Ilya Volkov (Chief Executive Officer)

  • Core Service: Make use of 31 different cryptocurrencies as collateral to secure loans with a loan to value (LTV) ratio of between 50% (loan duration 180 days) and 90% (loan duration 30 days). You can borrow amounts as small as $100 in USD, EUR, CHF and GBP, withdrawing funds instantly to your bank account or personal credit card

  • Interest Rates: Interest rates start as low as 2.1% when borrowing at the higher LTV rate over 30 days, with a 1% service fee charged if you want to extend the agreement or complete repayment ahead of time

  • Other Services: The platform also offers a high-yield savings vehicle, so you can earn up to 12.7% per annum on supported assets. YouHodler also offers a built-in exchange that offers universal conversion between tokens, fiat currencies and stablecoins

  • Apply here

 


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