10 Best Crypto Loans & Crypto Lending Platforms for July 2024

Zac McClure
ByZac McClure, MBAReviewed byArthur Teller, CPAUpdated on July 9, 2024 · minute read
VerifiedExpert verified

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.

  • Cryptocurrency lending offers attractive interest rates for deposits, while crypto loans provide access to cash or additional crypto through collateralized borrowing.

  • However, crypto loans carry inherent risks, such as potential margin calls if asset prices decline.

  • Platforms for crypto lending serve as intermediaries between lenders and borrowers, with options available in both centralized and decentralized markets.

The 10 best crypto loan platforms in 2024

Navigating the world of cryptocurrency lending platforms can be challenging yet rewarding. Whether you're looking to leverage your digital assets for liquid funds or aiming to avoid selling during market lows, choosing the right crypto loan platform is crucial. Our experts identified the top 10 crypto loan platforms, considering their security measures, user reputation, interest rates, supported cryptocurrencies, and customer support.

Zac McClure's expert take

"Having personally navigated numerous crypto lending platforms, I've come to value those that emphasize security and flexible repayment terms above all. In my experience, Unchained Capital exemplifies these qualities, standing out as a premier choice for Bitcoin-backed loans. Their approach meets my expectations for security while respecting the financial flexibility important to users."

— Zac McClure, Co-founder, TokenTax

Aave

Aave

Best crypto loans for flash lending

Bake

Bake

Best crypto loans for low APR DeFi

Compound

Compound

Best crypto lending platform for bonus rewards

Unchained Capital

Unchained Capital

Best crypto loans for Bitcoin

YouHodler

YouHodler

Best crypto loans with high LTV ratios

How to choose a crypto lending platform?

Choosing the best crypto loan platform depends on factors like the type of crypto you plan to borrow against, your location, and your risk tolerance. Key considerations include:

  • Security: Ensure the platform is secure and has a history of safeguarding assets.

  • Reputation: Look for platforms with positive user reviews and a strong reputation in the crypto community.

  • Interest Rates & Terms: Different platforms offer varying rates and terms, so it's crucial to understand these before committing.

  • Supported Cryptocurrency: Check which cryptocurrencies the platform supports and whether your preferred assets are included.

  • Customer Support: Good customer support can be essential, especially if you need assistance during the loan process.

Compare the best crypto loans & crypto lending platforms in 2024

Aave

Best crypto loans for flash lending

Aave is a top-tier decentralized finance (DeFi) protocol built on the Ethereum blockchain. It offers both collateralized loans and unique flash loans, which are borrowed and repaid within a single transaction, providing opportunities for arbitrage.

-  Pros & Cons

Pros

  • High Loan-to-Value (LTV) rates enable low-interest loans.

  • Offers flash loans for quick arbitrage opportunities.

  • Supports multiple markets, including Ethereum, Avalanche, Harmony, and Arbitrum.

Cons

  • Flash loans may be complex and require technical expertise.

  • Availability of certain cryptocurrencies may vary.

-  Why our experts picked it

Aave supports seven different markets on its Version 3 crypto lending platform. High LTV rates and low-interest loans make it attractive for various borrowing needs.

Alchemix

Best crypto loans for self-repayment with smart contracts

Alchemix offers a revolutionary approach with self-repaying loans through smart contracts. This platform stakes your collateral to generate returns, which are then used to automatically repay your loan.

-  Pros & Cons

Pros

  • No need to make manual payments.

  • No forced liquidations.

  • Customizable loan and yield generation options.

Cons

  • Risks associated with smart contract vulnerabilities.

  • Limited cryptocurrencies supported.

-  Why our experts picked it

Alchemix provides various collateral options including ETH, WSETH, RETH, DAI, USDC, and USDT. It offers automatic repayments and up to 50% LTV, ensuring no forced liquidations.

Bake

Best crypto loans for low APR DeFi

Bake is a reputable DeFi platform based in Singapore, offering a wide range of financial services including crypto loans. Known for its low APR starting from 0.5%, Bake ensures quick loan approvals and a variety of collateral options.

-  Pros & Cons

Pros

  • Low Annual Percentage Rate (APR) starting from 0.5%.

  • Instant approval and funding for quick access to loans.

  • Trusted DeFi protocol offering multiple services.

Cons

  • APR may vary based on collateral and loan amount.

  • Limited to the Ethereum network.

-  Why our experts picked it

Bake provides instant approval and funding of crypto-backed loans without credit checks, allowing users to borrow securely and quickly.

CoinRabbit

Best crypto loans for quick access to funds

CoinRabbit specializes in offering crypto loans without KYC or credit checks, providing fast access to funds. Users can choose from over 130 types of collateral and borrow various cryptocurrencies like USDT, USDC, BUSD, BTC, ETH, DOGE, or DGB.

-  Pros & Cons

Pros

  • Quick access to funds with no KYC or credit checks.

  • Wide range of collateral options.

  • Borrowing in cryptocurrencies enables staying in the crypto market.

Cons

  • Limited to crypto loans, not supporting fiat options.

  • Potential risks associated with crypto market volatility.

-  Why our experts picked it

CoinRabbit offers quick access to funds without selling crypto. With over 130 collateral options, users can easily borrow against their crypto holdings.

Compound

Best crypto lending platform for bonus rewards

Compound is a pioneering DeFi platform on Ethereum, known for its decentralized lending services. It requires high collateral, ensuring low APRs, and offers rewards in the form of COMP tokens.

-  Pros & Cons

Pros

  • Low Annual Percentage Rates (APRs) due to high collateral requirements.

  • Opportunity to earn COMP tokens as rewards.

  • Proven track record in decentralized lending.

Cons

  • Collateralizing more than the loan amount can be a deterrent.

  • Limited collateral options compared to other platforms.

-  Why our experts picked it

Compound allows users to earn COMP tokens and offers low APR loans, making it a reliable choice for DeFi lending.

Crypto.com

Best crypto lending platform for credibility

Crypto.com provides a comprehensive lending service, allowing users to borrow up to 50% of their crypto value. With a credit calculator tool, users can customize their loan terms and benefit from lower interest rates by staking CRO.

-  Pros & Cons

Pros

  • Accessible loans up to 50% of cryptocurrency value.

  • Lower interest rates for staking Crypto.com Coin (CRO).\

  • Wide range of supported collateral and loan currencies.

Cons

  • Staking CRO may require additional investment.

  • Limited to specific cryptocurrencies and stablecoins.

-  Why our experts picked it

Crypto.com offers flexible repayment options and no credit check, making it a credible choice for crypto loans.

Summer.fi

Best crypto lending platform for reliable DeFi

Formerly known as Oasis.app, Summer.fi is part of the Maker ecosystem. It is a reliable DeFi platform that offers low APR DAI loans and supports various collaterals including ETH, wBTC, stETH, UNI, and LINK.

-  Pros & Cons

Pros

  • Reliable DeFi platform with Maker Foundation support.

  • Low APR starting from 0.25% for DAI loans.

  • Flexible repayment options with sufficient collateral.

Cons

  • Limited to DAI loans.

  • Collateral options may not cover all user preferences.

-  Why our experts picked it

Summer.fi provides DAI loans with flexible terms and low APR, ensuring a reliable and secure lending experience.

Unchained Capital

Best crypto loans for Bitcoin

Unchained Capital focuses on Bitcoin-backed loans, offering services like Bitcoin saving vaults and IRAs. It ensures the security of client assets by not rehypothecating them.

-  Pros & Cons

Pros

  • Specializes in Bitcoin-backed loans.

  • No rehypothecation policy ensures client asset security.

  • Flexible repayment schedules.

Cons

  • Not available in all US states.

  • Borrowing limited to Bitcoin-backed loans.

-  Why our experts picked it

Unchained Capital offers secure Bitcoin-backed loans with flexible repayment options, catering to high net worth individuals.

Uniswap Flash Swaps

Best crypto loans for arbitrage

Uniswap Flash Swaps provide uncollateralized loans for arbitrage opportunities, automated by smart contracts. This feature is ideal for experienced traders looking to exploit market discrepancies.

-  Pros & Cons

Pros

  • Uncollateralized loans for arbitrage.

  • Automated smart contracts streamline the process.

  • Ideal for experienced traders.

Cons

  • Requires technical knowledge and experience.

  • Not suitable for beginners.

-  Why our experts picked it

Uniswap Flash Swaps allow traders to take advantage of arbitrage opportunities without upfront capital, using automated smart contracts.

YouHodler

Best crypto loans with high LTV ratios

YouHodler is a centralized platform offering high LTV ratios up to 90%, with over 40 cryptocurrencies available as collateral. It provides instant approval and funding without credit checks.

-  Pros & Cons

Pros

  • High Loan-to-Value (LTV) ratio of up to 90%.

  • Wide range of supported collateral and loan currencies.

  • Instant approval and funding.

Cons

  • Not available to US residents.

  • Higher risks associated with high LTV ratios.

-  Why our experts picked it

YouHodler offers quick and convenient loans with high LTV ratios, supporting a variety of cryptocurrencies.

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.

Reasons for taking a crypto loan:

  • Expecting the value of the crypto asset to increase.

  • Avoiding short-term capital gains tax rates.

How to get a crypto loan

To get a crypto asset loan, you’ll need to:

  1. Choose a platform that supports your preferred cryptocurrencies.

  2. Verify your crypto holdings and identity.

  3. Select the type of loan, LTV, and repayment terms.

Is crypto lending a good idea?

Benefits of crypto loans:

  • Low interest rates, often below 10%.

  • Typically no credit check.

  • Fast funding, sometimes within hours.

Crypto loans can provide quick access to capital without selling crypto holdings, which can be advantageous for crypto tax and investment purposes.

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

Pros and cons of crypto loans

Pros

  • No credit checks.

  • Swift approval and funding.

  • Preserves crypto holdings.

  • Flexible loan terms.

  • Low interest rates.

  • Diverse utilization.

Cons

  • Ownership of crypto is required.

  • Increased LTV demands.

  • Risk of asset liquidation.

  • Limited regulatory oversight.

  • Lender reliability concerns.

  • Limited control over assets with CeFi lenders.

Types of crypto loans

There are two primary types of crypto loans:

Custodial crypto (CeFi) loans

CeFi loans involve a central entity holding the collateral and controlling the assets' private keys.

Non-custodial (DeFi) crypto loans

DeFi loans, like those from Aave and Compound, use smart contracts to enforce loan terms, allowing users to retain control of their assets unless they default.

When to borrow against crypto?

Applying for a crypto loan requires minimal documentation compared to traditional loans. The loan amount depends on the collateral provided, with typical LTV ratios being lower due to crypto market volatility.

Risks involved in crypto loans

Technical risks: Protocol failures or hacks.Counterparty risk: Lack of FDIC insurance and liquidity issues.Margin calls and forced liquidations: Borrowers may need to increase collateral or face liquidation during market downturns.

Crypto loans without collateral

Flash loans from platforms like Aave, dYdX, and Uniswap allow users to borrow without collateral for specific transactions, typically used for arbitrage. However, these loans require technical expertise and carry risks.

How are crypto loans taxed?

If managed properly, crypto loans are not taxable events. However, potential tax scenarios include:

Loan fees: Interest fees may be deductible for investment or business purposes.

Failure to repay: Liquidated collateral may result in capital gains or losses.

Forced liquidation: Capital gains tax may apply to liquidated collateral.

Schedule a FREE crypto tax consultation

What can a crypto loan be used for?

Crypto loans offer flexibility for various uses, including significant expenditures, debt refinancing, or business ventures. They are ideal for those with substantial crypto portfolios seeking liquidity without selling their assets.

Crypto loan alternatives

For those hesitant to use crypto as collateral, consider:

  • Conventional loans from banks or credit unions.

  • Small personal loans from apps like CashApp.

  • Home equity loans.

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?

Yes, platforms like Aave and Atlendis offer uncollateralized crypto loans, but availability and terms vary.

Read more: Best Crypto Exchanges

Are crypto loans safe?

Crypto loans involve risks. Choose reputable platforms, understand loan terms, and avoid overextending your LTV ratio.

How much can I borrow on crypto?

Borrowing limits vary by platform, with LTV ratios ranging from 50% to 90%.

Do crypto loans count as income?

No, receiving a loan against crypto collateral is not a taxable event.

How are crypto loans paid back?

Repayment terms vary. CeFi loans typically have fixed schedules, while DeFi loans offer more flexibility.

Do crypto loans affect credit score?

Most crypto loans do not involve credit checks, but this may change as the market evolves.

Can I get a loan for crypto?

Yes, crypto loans allow you to use your crypto holdings as collateral for a loan.

Why do people take crypto loans?

To access liquidity without selling crypto, benefiting from potential future value increases and flexible borrowing options.

Can I withdraw crypto loan?

Yes, once secured, crypto loan funds can typically be withdrawn via bank transfers or stablecoin payouts.

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

Evaluate interest rates, LTV ratios, repayment terms, platform reputation, and transparency.

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

Look for strong security measures, user-friendly interfaces, and positive customer reviews.

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

Choose platforms with robust security practices, two-factor authentication, and insurance coverage for deposited assets.

What are the tax implications of earning interest from crypto lending on Coinbase?

Interest from crypto lending is taxable income. Report it on your tax return as ordinary income, converted to USD at the time of receipt. Capital gains or losses may apply if the cryptocurrency is later sold or traded.

To stay up to date on the latest, follow TokenTax on Twitter @tokentax.

TokenTax reviews take an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

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.

Get a personalized crypto tax consultation.

Complete our questionaire and we'll evaluate your situation — for free.

Let’s get started.

Check out our plans and pricing to find out which solution best meets your needs.

Review plans