Borrow Against Crypto
Top platforms that let you borrow against your crypto assets.
| Founded: | 2018 |
| Availability: | Worldwide, excluding US |
| Crypto Backed Loans: | Yes |
Bitget, established in 2018, is a cryptocurrency exchange and Web3 company that has rapidly expanded its services to over 45 million users across more...
| Founded: | 2020 |
| Availability: | Worldwide |
| Crypto Backed Loans: | Yes |
CoinRabbit is a stablecoin-focused lending/loan platform. CoinRabbit offers monthly yield on USDT (Tether) and USDC (Circle). With no KYC, no fees,...
| Founded: | |
| Availability: | Worldwide |
| Crypto Backed Loans: | Yes |
Cropty Wallet is a custodial wallet for managing, earning, borrowing crypto. It supports multiple cryptocurrencies in a single wallet. Cropty Earn ...
| Founded: | 2014 |
| Availability: | UK, Europe and Latin America |
| Crypto Backed Loans: | Yes |
Nebeus is a multi-currency financial platform, merging money with crypto. Nebeus supports 25+ coins. Nebeus Crypto Renting Rent (lend) your cryp...
| Founded: | 2017 |
| Availability: | Worldwide (excluding US and Canada) |
| Crypto Backed Loans: | Yes |
Nexo is one of the most popular crypto interest account platforms, with Nexo Earn. Nexo offers a crypto credit card, competitive crypto interest ra...
| Founded: | 2017 |
| Availability: | Worldwide, some services unavailable in US |
| Crypto Backed Loans: | Yes |
OKX (formerly OKEx and okcoin) is a popular and large crypto exchange that offers OKX Earn, a suite of products, which includes crypto savings account...
| Founded: | 2016 |
| Availability: | Worldwide |
| Crypto Backed Loans: | Yes |
SALT enables individual investors and businesses with crypto assets to generate and preserve long-term wealth. SALT LEND offers attractive rates o...
What is Borrowing Against Crypto?
Borrowing against crypto allows investors to secure loans by using their cryptocurrency assets—such as Bitcoin (BTC), Ethereum (ETH), or USDC—as collateral. This approach provides liquidity without requiring the sale of assets, preserving potential future gains.
Why Borrow Against Crypto?
Crypto-backed loans enable individuals to unlock the value of their holdings while maintaining long-term positions. This strategy benefits investors who need cash for expenses, investments, or business ventures but prefer not to liquidate their crypto holdings.
- Tax Efficiency: Avoid triggering taxable events by borrowing instead of selling.
- Liquidity Access: Use your crypto assets without selling, allowing continued exposure to market growth.
- Flexible Use: Funds from crypto loans can be used for personal or business needs, including further investment.
How Does it Work?
Crypto lending platforms allow users to deposit digital assets into collateral accounts. In return, they receive a loan typically denominated in fiat or stablecoins. If the collateral value drops below a threshold, borrowers may need to add more collateral or risk liquidation.
Benefits of Crypto-Backed Loans
- No Credit Checks: Loans are secured by the value of crypto assets, bypassing traditional credit score requirements.
- Fast Processing: Borrowers can often receive funds within 24-48 hours, much faster than traditional bank loans.
- Maintain Market Exposure: Borrowers continue to benefit from potential price appreciation of their collateralized assets.
Popular Assets for Collateral
The most common assets used for borrowing include:
- Bitcoin (BTC): The leading cryptocurrency, often used due to its liquidity and market stability.
- Ethereum (ETH): Frequently used for loans thanks to its widespread adoption and staking potential.
- USDC (USD Coin): A stablecoin pegged to the US dollar, offering less volatility for secure lending.
Risks to Consider
While borrowing against crypto offers significant benefits, it's essential to consider potential risks:
- Market Volatility: A sharp drop in asset value may lead to liquidation of collateral.
- Interest Rates: Rates may vary significantly between platforms and assets.
- Security: Choose reputable lending platforms to reduce risks associated with fraud or platform insolvency.