Borrowing against digital assets lets you unlock cash without giving up future upside or triggering a taxable sale. To help readers pick a reliable provider, we examined ten active lending venues, measuring collateral flexibility, loan-to-value ranges, interest costs, custody safeguards, and user support. Our list covers both regulated custodial lenders and fully autonomous DeFi protocols, so you can weigh convenience against self-custody and choose a platform that matches your risk tolerance.

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What are the best crypto loans?

What is crypto lending?

Crypto lending lets people borrow funds by using their digital assets as collateral. Instead of selling their crypto, users can keep their investments while accessing cash or more cryptocurrency. This is helpful for those who want to maintain their crypto portfolio and avoid taxable events that come with selling assets.

Lenders on these platforms also benefit by earning interest by lending funds to borrowers. There are two main types of crypto lending platforms: centralized finance (CeFi) and decentralized finance (DeFi). Both have unique qualities, so users must understand how each type works before deciding which fits their needs.

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Types of crypto loans

Crypto loans fall into two main categories: CeFi (centralized finance) and DeFi (decentralized finance). Here’s a quick breakdown of each.

What is a CeFi loan?

CeFi loans are issued by platforms that follow regulatory guidelines and usually require identity verification, known as KYC (Know Your Customer). These platforms offer structured loan terms and support services, which can make the lending process feel more secure and reliable.

What is a DeFi loan?

DeFi loans operate without middlemen, using automated smart contracts to enable direct transactions. These loans often provide more privacy and control but come with risks like potential smart contract bugs. DeFi and CeFi loans cater to different users, so it’s worth considering your goals and risk tolerance when choosing between them.

Learn more in our DeFi tax guide.

Best crypto lending platforms comparison

The crypto lending world offers many options for both borrowers and lenders. We’ve reviewed leading platforms that stand out for different reasons: high loan-to-value (LTV) ratios, low interest rates, or special features for specific cryptocurrencies.

From highly secure CeFi options to flexible DeFi solutions, each platform has been reviewed for its reputation, loan terms, security features, and customer support. Here’s a closer look at the best crypto lending platforms.

Compound

Best crypto lending platform for bonus rewards

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Compound is a trusted DeFi platform that offers loans with low APR due to high collateral requirements and rewards borrowers with COMP tokens.

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–  Why our experts picked it

Compound rewards users with COMP tokens, adding an incentive to low-interest loans.

Crypto.com

Best crypto lending platform for credibility

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Crypto.com offers crypto-backed loans with loan-to-value (LTV) ratios of up to 50%, but actual LTV varies based on the asset and whether the user stakes CRO tokens. Higher LTV ratios may be available for certain cryptocurrencies, while others have lower limits. Crypto.com provides flexible repayment terms and a variety of collateral options.

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–  Pros & Cons

Pros

• High LTV up to 50% for select assets

• Lower rates for CRO staking

• Diverse collateral options

Cons

–  Why our experts picked it

Crypto.com’s well-established platform and flexible loan terms make it a strong choice, though borrowers should check current LTV limits for their chosen asset.

Summer.fi

Best crypto lending platform for reliable DeFi

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Formerly known as Oasis, Summer.fi provides low-interest DAI loans within the Maker ecosystem and supports flexible repayment options with various assets.

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–  Why our experts picked it

Backed by Maker Foundation, Summer.fi offers low-rate DAI loans and a range of collateral options, making it a dependable DeFi platform.

Unchained Capital

Best crypto loans for Bitcoin

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Specializing in Bitcoin-backed loans, Unchained Capital offers flexible terms and secure asset storage, without rehypothecating client assets.

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–  Pros & Cons

Pros

• Specialized in Bitcoin-backed loans.

• Assets are not rehypothecated, adding security.

• Flexible repayment schedules.

Cons

–  Why our experts picked it

Unchained Capital’s focus on Bitcoin-backed loans and no-rehypothecation policy make it a trusted choice for Bitcoin holders.

Uniswap Flash Swaps

Best crypto loans for arbitrage

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Uniswap’s flash swaps provide uncollateralized loans for one-time arbitrage within a single transaction, fully automated by smart contracts.

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–  Pros & Cons

Pros

• Uncollateralized loans for arbitrage.

• Automated smart contracts handle everything.

• Ideal for experienced traders.

Cons

–  Why our experts picked it

Uniswap’s flash swaps offer uncollateralized loans for advanced users to capitalize on arbitrage opportunities quickly.

YouHodler

Best crypto loans with high LTV ratios

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Offering loans with up to 90% LTV, YouHodler supports more than 40 cryptocurrencies, provides instant approval, and doesn’t require credit checks.

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–  Why our experts picked it

YouHodler’s high LTV ratios and easy approval make it a great choice for those needing significant liquidity.

Are crypto loans worth it?

Cryptocurrency loans can be valuable for users seeking liquidity without selling assets. Borrowers keep ownership of their assets, which means they benefit from any future appreciation while avoiding taxable events associated with selling. Crypto loans can also help with financial planning, allowing cash flow without impacting long-term crypto holdings.

However, crypto loans do have risks. The volatile nature of crypto markets can result in margin calls if the collateral loses value. Careful consideration of financial goals, risk tolerance, and specific loan terms will help determine if a crypto loan is the right option for you.

Learn more about different types of cryptocurrency.

How are crypto loans taxed?

Generally, taking out a crypto loan is not a taxable event. Borrowing against crypto assets does not create an immediate tax obligation. However, any interest earned from lending is classified as income and must be reported to the IRS.

If you eventually sell the collateral, you may face capital gains tax, depending on the asset’s value at the time of sale. Consulting a tax expert or using crypto tax software can help ensure compliance with tax rules.

Looking to calculate your crypto taxes? Try our free crypto tax calculator.

Risks and benefits of crypto loans

Here’s a quick breakdown of some risks and benefits of using crypto loans.

Crypto loan risks:

• Potential for margin calls during market downturns.

• Lack of regulation in the crypto lending sector.

• Security concerns, particularly with DeFi platforms.

Crypto loan benefits:

• Access to liquidity without selling assets.

• Potential to retain assets for future gains.

• May offer tax advantages by avoiding immediate capital gains.

Crypto loan alternatives

Crypto loans are a powerful tool for accessing liquidity without selling digital assets, but they’re not the only option. For those interested in similar benefits without taking on a loan, there are several alternatives to consider:

• Staking and Yield Farming: Many platforms allow users to earn passive income through staking or yield farming, locking up crypto in a protocol and earning rewards. This approach avoids the debt risk associated with loans while still generating returns on your assets.

• Traditional Personal Loans: While traditional personal loans don’t use crypto as collateral, they provide access to funds without the potential volatility of crypto markets. These loans may be a good choice for users who prefer stability and are willing to go through a credit check.

• Crypto Savings Accounts: Some crypto platforms offer savings accounts that pay interest on your digital assets. While this method doesn’t provide immediate cash, it allows you to grow your holdings over time without selling your crypto or taking on loan risk.

• Crypto Credit Cards: Certain providers offer crypto-backed credit cards, letting users spend against their crypto holdings without selling assets. These cards often have unique benefits and offer a flexible way to leverage crypto for everyday purchases.

Each alternative has its own advantages and drawbacks, depending on your financial goals and risk tolerance. Exploring these options alongside crypto loans can help you determine the best approach for accessing liquidity with your digital assets.

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Best crypto loans without collateral

Crypto loans without collateral give borrowers access to funds without requiring them to use assets as security. Instead of using traditional guarantees, these loans rely on decentralized finance (DeFi) tools like smart contracts to enforce repayment. They’re a unique option for those needing liquidity but not wanting to lock up their crypto as collateral.

Flash loans are the most common form of no-collateral crypto loans. They allow users to borrow and repay within a single blockchain transaction, making them useful for time-sensitive arbitrage strategies. Flash loans don’t typically require collateral, but they do demand technical skill and carry risks, such as potential smart contract failures. Popular platforms for no-collateral loans include Aave, which is notable for reliable Ethereum flash loans, and Uniswap, which offers similar tools called flash swaps.