10 Best Crypto Loans & Crypto Lending Platforms for July 2025
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We compared ten lending platforms side by side, rating each one on loan terms, collateral choices, security measures, interest charges, and maximum loan-to-value ratios.
Using crypto as collateral unlocks cash without selling the asset, deferring capital-gains tax until a future sale, yet a sharp market drop can force liquidation and create an immediate taxable gain.
Why trust our crypto tax experts
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.
Looking to calculate your crypto profit? Try our free crypto profit calculator.
What are the best crypto loans?
Platform | Best For | Key Features |
---|---|---|
Aave | Best for flash lending | Offers Ethereum-based flash loans and liquidity pools. |
Alchemix | Best for self-repayment | Uses smart contracts to repay loans automatically using future yield. |
Bake | Best for low APR in DeFi | Focuses on providing loans with competitive rates. |
CoinRabbit | Best for quick access to funds | Fast loan approval process with no credit checks. |
Compound | Best for bonus rewards | Allows users to earn additional rewards through COMP token incentives. |
Crypto.com | Best for credibility | Established platform with a wide array of services, including lending. |
Summer.fi | Best for reliable DeFi | Offers a range of decentralized financial services with strong reputation. |
Unchained Capital | Best for Bitcoin loans | Focuses exclusively on Bitcoin-backed loans. |
Uniswap Flash Swaps | Best for arbitrage | Enables users to borrow and repay within the same transaction for arbitrage. |
YouHodler | Best for high LTV ratios | Offers high loan-to-value (LTV) ratios and multi-asset support. |
What is crypto lending?
Crypto lending enables individuals to 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 cryptocurrency portfolio and avoid taxable events that occur when selling assets.
Lenders on these platforms also benefit by earning interest on the funds they lend 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 can be categorized into two main types: 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.
Aave is a leading DeFi platform that offers traditional collateralized loans and unique flash loans aimed at arbitrage opportunities. It supports markets like Ethereum, Avalanche, and Arbitrum.
Alchemix is known for its smart contracts that generate returns from staking collateral, automatically repaying the loan without liquidation risks.
Based in Singapore, Bake is a trusted DeFi platform on the Ethereum network that offers low-interest loans with instant approval and various collateral choices.
CoinRabbit provides crypto loans without needing KYC or credit checks. It supports over 130 different types of collateral and offers fast access to funds in various cryptocurrencies.
Compound is a trusted DeFi platform that offers loans with low APR due to high collateral requirements and rewards borrowers with COMP tokens.
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.
Formerly known as Oasis, Summer.fi provides low-interest DAI loans within the Maker ecosystem and supports flexible repayment options with various assets.
Specializing in Bitcoin-backed loans, Unchained Capital offers flexible terms and secure asset storage, without rehypothecating client assets.
Uniswap’s flash swaps provide uncollateralized loans for one-time arbitrage within a single transaction, fully automated by smart contracts.
Offering loans with up to 90% LTV, YouHodler supports more than 40 cryptocurrencies, provides instant approval, and doesn’t require credit checks.
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.
Methodology
Best crypto loans FAQs
Can I get a crypto loan without collateral?
Are crypto loans safe?
Do crypto loans count as income?
How much can I borrow on crypto?
What should I look for in a crypto loan platform?
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