10 Best Crypto Loans & Crypto Lending Platforms for April 2024

Zac McClure
ByZac McClure, MBAReviewed byArthur Teller, CPAUpdated on April 1, 2024 · minute read
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TokenTax content follows strict guidelines for editorial accuracy and integrity. We do not accept money from third party sites, so we can give you the most unbiased and accurate information possible.

  • Our crypto tax experts have identified and reviewed the top ten best crypto loan services, including Aave, Compound, and YouHodler in addition to our top pick for the best Bitcoin crypto loans: Unchained Capital.

  • Taking a crypto loan does not typically cause a taxable event. However, several loan-related events may be taxable, most notably forced liquidations.

Our picks: What is the best crypto lending platform in 2024?

Crypto loan platforms allow crypto users and traders to access liquid funds without selling digital assets. Our crypto tax experts have curated a list of the best available crypto lending platforms, with pros and cons for easy reference. This guide will help you quickly find the best crypto loans and reviews of these and other exceptional crypto lending platforms.



Best crypto loans for flash lending



Best crypto loans for low APR DeFi



Best crypto lending platform for bonus rewards

Unchained Capital

Unchained Capital

Best crypto loans for Bitcoin



Best crypto loans with high LTV ratios

How to choose a crypto lending platform?

The best crypto loans for your purpose will depend on a number of factors, including the type of crypto you intend to borrow against, your region, and your risk profile. 

Some key factors to consider when considering a crypto lending provider and seeking the best crypto loans include:

  • Security: is the crypto lending platform secure? Does the crypto loan platform have a history of security breaches or hacks?

  • Reputation: does the platform have high-quality user reviews and testimonials, and what is its reputation in the crypto community?

  • Interest Rates & Terms: different crypto lending platforms will offer different rates and terms, and you’ll want to understand these before proceeding with any crypto loans.

  • Supported Cryptocurrency: which cryptocurrencies does the crypto lending platform support and will you be able to get a crypto loan with your preferred currencies?

  • Customer Support: what customer support does the crypto lending platform provide, and are you confident you’ll be able to get any assistance you might need?

Compare the best crypto loans & crypto lending platforms in 2024

Here are expert picks of the crypto loan companies that will help you access the best crypto lending options available in 2024.


Best crypto loans for flash lending

Aave is a leading crypto lending platform that allows you to take loans by providing cryptocurrency as collateral or through flash loans without collateral, for arbitrage. Because the LTV rates are high, you can enjoy very low interest rates.


Best crypto loans for self-repayment with smart contracts

Alchemix offers self-repaying loans through smart contracts, which means borrowers don’t need to worry about manual payments or worry about unanticipated liquidations.


Best crypto loans for low APR DeFi

Bake is a reputable, Singapore-based platform that provides a wide range of decentralized financial services, including crypto loans. They offer an Annual Percentage Rate (APR) starting from 0.5% and allow users to borrow DUSD with a variety of options for collateral.


Best crypto loans for quick access to funds

CoinRabbit offers crypto loans without KYC or credit checks, providing quick access to funds. Users can utilize over 130 different types of collateral and borrow cryptocurrencies such as USDT, USDC, BUSD, BTC, ETH, DOGE, or DGB, with a minimum loan amount of $100.


Best crypto lending platform for bonus rewards

Compound was one of the first platforms to offer decentralized lending and has played a significant role in shaping the DeFi market. They require borrowers to provide more collateral than the loan amount, ensuring low APRs, and offer numerous options for collateral assets, including ETH, WBTC, COMP, UNI, or LINK.


Best crypto lending platform for credibility

Crypto.com offers loans through which you can borrow up to 50% of the value of your cryptocurrency. They also provide a credit calculator tool so you can customize the terms of your loan. Lower interest rates are available when you stake with their native Crypto.com Coin (CRO), and users can use over 20 cryptocurrencies as collateral.


Best crypto lending platform for reliable DeFi

Summer.fi (previously Oasis.app) began as a part of the Maker Foundation, which oversees MakerDAO, Maker Protocol, and DAI. It has developed a reputation as a reliable DeFi platform that provides DAI loans. The platform allows you to deposit collateral including ETH, wBTC, stETH, UNI, LINK, and more.

Unchained Capital

Best crypto loans for Bitcoin

Unchained Capital is a crypto lending company that offers financial services related to Bitcoin. They offer various services such as Bitcoin saving vaults and IRAs for investors, as well as loans that are backed by Bitcoin. Unchained Capital follows a policy of not rehypothecating client assets, which means they never lend out the assets held by their clients.

Uniswap Flash Swaps

Best crypto loans for arbitrage

For more technically savvy traders, Uniswap Flash Swaps provides uncollateralized loans suited for arbitrage traders, automated by smart contracts. Technical knowledge is required, and it may not be suitable for those new to DeFi.


Best crypto loans with high LTV ratios

YouHodler is a crypto lending platform tailored to investors who want to borrow crypto fast. They offer a variety of options for collateral and provide a high loan-to-value (LTV) ratio of up to 90% for a duration of up to one year. With over 40 cryptocurrencies to choose from as collateral for crypto-backed loans, borrowers can access funds up to 90% of the collateral's value.

Schedule a FREE crypto tax consultation

What is a crypto loan?

A crypto-backed loan allows traders to receive liquid funds without selling their cryptocurrency. Instead, they use their digital assets as collateral for a cash or stablecoin loan.

Individuals may choose to take out a crypto loan instead of selling because they expect their crypto asset’s value to increase or because they want to hold the asset long enough to avoid short-term capital gains crypto tax rates.

How to get a crypto loan

Crypto loans are available through a crypto lending platform, as described above. Essentially, a crypto loan allows you to borrow against crypto. To get a crypto asset loan, you’ll need to own one of the cryptocurrencies accepted by the crypto lending platform you select. So first, check with the crypto lending platform regarding which coins they’ll accept, as that’s an essential part of finding the best crypto loans for your purposes.

Each crypto lending platform will have a unique application process, so it’s important to do your research before applying to make sure you’ll qualify in your region. Like any loan, the fine print matters, so take the time to read the terms and conditions.

Once you’re confident you’ve chosen the best crypto lending platform for your goals, start an account and begin the application process. You’ll need to verify your crypto holdings and your identity. From here, you’ll choose the type of crypto loan you want and the loan-to-value (LTV) you’re interested in, as well as payment terms.

More: Best Crypto Exchanges

Is crypto lending a good idea?

There are a number of benefits to crypto lending, including:

  • Low interest rates, often below 10%

  • Typically, no credit check

  • Fast funding, even within hours

Crypto loans, when properly handled, can be a quick and safe way for crypto holders to access additional funds by borrowing against their existing crypto holdings. 

Crypto-backed loans give crypto holders access to capital without having to sell their crypto, which can be advantageous for tax and other purposes when used responsibly as part of a broader crypto strategy.

Pros and cons of crypto loans


  • No credit checks: Unlike conventional loans, crypto loans typically do not necessitate stringent credit checks.

  • Swift approval and funding: The process of approval and fund disbursement is known for its speed and efficiency.

  • Preserves crypto holdings: You can secure a crypto loan without liquidating your valuable cryptocurrency assets.

  • Flexible loan terms: Crypto loans often come with flexible terms, accommodating your specific requirements.

  • Low interest rates: Enjoy competitive interest rates.

  • Diverse utilization: You have the freedom to utilize the borrowed funds for a wide range of purposes.


  • Ownership of crypto is required: To apply for a crypto loan, you must possess cryptocurrency assets.

  • Increased LTV demands: Should the value of your crypto holdings decrease, you may be required to provide additional assets to maintain a healthy Loan-to-Value (LTV) ratio.

  • Risk of asset liquidation: Failure to make payments or repeated missed payments can lead to the liquidation of your assets.

  • Limited oversight: Crypto lenders typically operate with less regulatory oversight compared to traditional banks.

  • Lender reliability concerns: Borrowers are exposed to the risk of losing their cryptocurrency if the lending platform experiences financial difficulties.

  • Limited control: When you entrust your crypto to a Centralized Finance (CeFi) lender, you may lose control over your assets for the duration of the loan.

Types of crypto loans

There are two principal categories of crypto loans: custodial (CeFi) and non-custodial (DeFi).

  • With CeFi crypto loans, a central entity holds the collateral and controls the assets' private keys, restricting the trader's access to their assets.

  • DeFi crypto loans use smart contracts to enforce loan terms, allowing users to retain control of their assets unless they default on the loan.

Custodial crypto (CeFi) loans

CeFi loans are custodial, which is to say, a central entity takes custody of collateral. In this situation, a trader cannot access his or her collateralized assets. Instead, the lender controls the assets’ private keys. This contrasts with the more transparent DeFi loans, through which traders can see their assets’ availability directly on the blockchain.

The takeaway here is that although custodial crypto loans are still far more accessible and affordable than traditional loans, they still depend on a centralized lending provider to enforce their terms. 

Non-custodial (DeFI) crypto loans

DeFi loans like that Aave and Compound offer are non-custodial. Rather than depending on a central organization to enforce the loan terms, they depend on smart contracts. If a trader takes out a DeFi crypto loan, they retain control of their assets’ keys—unless they default on the loan.

DeFi platforms cannot directly lend fiat currency. Instead, traders receive stablecoins that can then be exchanged for cash. DeFi loans tend to have a higher interest rate than custodial loans. DeFi, however, is more transparent than CeFi. For cryptocurrency holders who want to actually hold their assets’ keys, DeFi crypto loans are a must.

When to borrow against crypto?

Compared to the process of applying for a traditional loan, applying for a crypto loan requires relatively little. Credit checks are typically not required and instead, the amount of the loan you will be approved for depends upon the amount of collateral you’re able to use. 

The loan-to-value (LTV) ratio is the ratio between the amount of the loan and the value of the collateral. If you put up $10,000 worth of crypto as collateral and receive a $6,000 loan in fiat or a dollar-pegged stablecoin such as USDT, your loan’s LTV ratio is 60 percent. 

Because crypto markets are volatile, LTV ratios on crypto loans are typically low. There is always risk involved in borrowing, so do your research to determine what LTV you’re comfortable with.

What are the risks involved in crypto loans?

Finding the best crypto loans for your purposes begins with understanding the risks involved. Unlike assets held in traditional financial institutions, crypto accounts are not covered by the FDIC.

Consequently, crypto assets have no federal insurance if an exchange fails. With this in mind, three primary types of risk are inherent in crypto loans.

Technical risks of crypto lending

As in all cryptocurrency trading, there is a risk that protocols break down because of a technical problem or hacking. This risk is somewhat higher in non-custodial loans since all DeFi activity is completely algorithmically governed.

Counterparty risk of a crypto loan

The FDIC requires all traditional banks to maintain a certain level of liquidity; crypto loan providers are not subject to this requirement. If the market crashes, an unexpectedly large number of clients default on their loans, or if a platform breaks or is exploited, the crypto lending platform may find itself without the liquidity to return a borrower’s collateral.

Margin calls and forced liquidations

To prevent illiquidity during market downturns, lending platforms will issue margin calls or force liquidations. If a cryptocurrency’s value drops to a point where many borrowers’ LTVs are too high for the platform to maintain, the platform will inform borrowers that they must increase the value of their collateral or risk liquidation.

If the call is not met, the platform may liquidate enough of the collateral to bring an account’s LTV back to the maximum allowed ratio. In this case, a trader will have forfeited that portion of their deposit, will have incurred capital gains or losses, and may be charged transaction and broker fees.

Crypto loans without collateral

Crypto loans without collateral are in their early days. DeFi protocols such as Aave, dYdX, and Uniswap (as outlined above) offer uncollateralized flash loans. Flash loans allow users to borrow tokens or coins for a short time to perform specific transactions. 

Flash loans are borrowed and returned within seconds using smart contracts that define the terms and conditions. If the borrower fails to repay or meet the contract conditions, the transaction is reversed and the funds return to the lender.

Investors typically use flash loans for arbitrage, through which they buy from one market and sell on another to profit from marginal price differences. Even a 1% price difference can lead to substantial gains with a large enough flash loan. Aave, for example, issues millions of dollars in flash loans daily.

There are a small number of crypto lending platforms that offer crypto loans without collateral for certain borrowers. For instance, Atlendis provides such loans to approved institutional traders.

It’s essential to exercise caution and do thorough research before engaging in any crypto borrowing. This space is still new and attracts scammers, and crypto loans without collateral pose special risks for investors. A good general rule is: if an offer sounds too good to be true, it probably is.

How are crypto loans taxed?

If a crypto loan is managed properly and all parties uphold the terms of the loan, the parties should not incur any taxes. The IRS considers cryptocurrency to be property, and using your property as collateral for a loan is not considered a cryptocurrency trade or sale and therefore is not a crypto taxable event.

However, several potential crypto loan scenarios could affect your taxes.

Crypto loan fees

Providers charge borrowers interest fees on their loans. These fees can range from around .5% APR to over 12% APR. If you use your loan for investment or business purposes, you may be able to write off these interest fees on your taxes.

Contact a tax professional for more guidance about business deductions.

Failure to pay back the loan

If you don’t pay back your crypto loan, the lender may liquidate all or part of your asset to recoup its losses. This could result in capital gains or losses for you, even though the lender retains the proceeds.

Forced liquidation

As mentioned above, if collateral is liquidated because of an unmet margin call, the borrower will be subject to capital gains tax on any increase in the collateral’s value between the time of its purchase and the time the lender sold the asset.

Self-repaying loans

Self-repaying loans, like those offered on Alchemix, do result in taxes owed. This is because the structure results in what is called “debt cancellation income.”

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What can a crypto loan be used for?

Crypto loans offer a versatile financing option with considerable flexibility, often devoid of the constraints imposed by traditional lenders, akin to personal loans. The funds acquired through a crypto loan can be directed towards various significant expenditures, including a down payment for a house, a dream vacation, debt refinancing, or even the launch of a new business venture.

Crypto loans can be a logical choice for individuals who possess a substantial crypto portfolio and wish to access liquidity without resorting to selling their digital assets. This strategy proves particularly beneficial when concerns about crypto market volatility or fluctuations in coin values come into play.

Crypto loan alternatives

Several options are available for those hesitant to use their cryptocurrency as collateral. These alternatives provide diverse avenues for obtaining a loan based on different assets or financial instruments.

  • Consider a conventional loan offered by banks or credit unions. While this process typically involves a thorough credit check, it provides a traditional and established means of securing a loan.

  • Platforms like CashApp offer a convenient solution for individuals seeking smaller loan amounts. These apps allow borrowers to access loans ranging from $20 to $200, providing flexibility for those needing modest financial assistance.

  • Another option is a home equity loan, with which you use your home as collateral. However, default on a home equity loan can result in the lender seizing your home.

Best crypto loans FAQs

Here are some frequently asked questions about the best crypto loans and best crypto lending platforms available on the market today, so you can quickly identify your top pick.

Can I get a crypto loan without collateral?

You may be able to get a crypto loan without collateral. Platforms like Aave and Atlendis offer uncollateralized crypto loans that can act as a revolving line of credit. Market conditions will impact the availability of these, so you’ll want to investigate further and research the terms around these loans.

Are crypto loans safe?

Crypto loans involve a certain level of risk, as with any form of lending. Due to the inherent volatility of cryptocurrencies, it is crucial to exercise caution to avoid overextending your Loan-to-Value (LTV) ratio and refrain from using crypto loans for margin trading. Selecting a reputable crypto lending platform is paramount, and a thorough understanding of the loan terms is essential before finalizing any agreement.

If you’re extremely risk averse, you’ll want to vet your crypto lending platform of choice fully and will want to understand how heavily they’re insured.

How much can I borrow on crypto?

The amount you can borrow against your crypto will vary from platform to platform. A LTV is 50%, while a crypto lending platform YouHodler offers up to 90%. Check with your platform of choice to see how much you can borrow.

Do crypto loans count as income?

No, crypto loans do not count as income. Receiving cash against a cryptocurrency deposit as collateral is not treated as a taxable event and is similar to taking out a home equity line of credit.

How are crypto loans paid back?

Like other loans, the terms of each crypto loan will vary. With your crypto lending platform of choice, you’ll make an agreement and will be expected to stick to the terms of payment. You can generally choose to repay a CeFi loan from three to 60 months, and upon repayment, you’ll receive your collateralized crypto back in return.

DeFi loans offer more flexibility, as your collateral is locked in a smart contract and returned when you pay off the loan and interest accrued.

Do crypto loans affect credit score?

Crypto loans can potentially affect your credit score but most likely will not. Most companies offering crypto loans do not typically conduct credit checks during their approval process.

That noted, prominent US credit bureau TransUnion does give the option for users to share their credit details with crypto-lending platforms, so credit checks may become more common across crypto lending services in the future. If you're concerned about a crypto loan affecting your credit score, check with the lender before applying.

Can I get a loan for crypto?

Yes, crypto loans are becoming increasingly popular. Platforms and services offer loans through which you can use your crypto holdings as collateral to secure a loan. This allows you to access funds without selling your crypto assets, potentially benefiting from future appreciation while meeting immediate financial needs.

Why do people take crypto loans?

People opt for crypto loans for various reasons. One primary advantage is the ability to access liquidity without liquidating their crypto holdings. This can be particularly useful when individuals want to hold onto their assets to benefit from potential future value increases. Additionally, crypto loans can offer a quick and flexible borrowing option, often with fewer credit checks compared to traditional loans.

Can I withdraw crypto loan?

Yes, once you secure a crypto loan, you can typically withdraw the borrowed funds. The process involves using your cryptocurrency holdings as collateral, and the loan amount is usually determined based on the value of your collateral.

Withdrawal methods vary depending on the platform or service provider, but common options include bank transfers or stablecoin payouts. Always ensure to review the terms and conditions of the specific crypto loan provider to understand withdrawal options and any associated fees.

What factors should I consider when searching for the best crypto loan?

When evaluating crypto loans, it's essential to consider factors including interest rates, loan-to-value ratios, and repayment terms. Assess the transparency and reputation of the lending platform, ensuring they adhere to industry best practices. Additionally, explore any potential fees associated with the loan to decide on the best crypto loan for your needs.

Are there specific criteria for identifying the best crypto lending platforms?

Identifying the best crypto lending platforms involves thorough research and an understanding of the risks associated with crypto. Look for platforms with a strong security track record, user-friendly interfaces, and positive customer reviews.

Pay attention to the cryptocurrencies accepted as collateral and the platform's regulatory compliance. Evaluating these criteria will help you choose a reliable and trustworthy crypto lending platform.

How can I ensure the security of my assets on the best crypto lending platforms?

Security is paramount when engaging with any crypto lending platform. Choose a platform with robust security measures like two-factor authentication and cold storage for private keys.

Additionally, inquire about insurance coverage for deposited assets. Educate yourself about the platform's security practices and only select those that prioritize the protection of your crypto assets for the best lending experience.

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Zac McClure
Zac McClureCo-Founder & CEO at TokenTax
Zac co-founded TokenTax after his career in international finance and accounting at JPMorgan, Imprint Capital and Bain. He has worked in more than half-dozen countries and received his MBA from the UPenn Wharton School.
Arthur Teller
Reviewed byArthur TellerCOO (Former) at TokenTax
Arthur came to TokenTax after 12 years at KPMG. A specialist in partnership taxation and enterprise tax software, he is a licensed CPA in both California and Illinois and a member of the AICPA.

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