Crypto Lending
Crypto lending is where investors loan digital currencies to borrowers in exchange for interest payments or dividends, typically through an online platform or app. For token holders, crypto lending is seen as a way to generate passive income while for borrowers, it can be less complicated than getting traditional loans from banks.
In this guide to crypto lending, we explain how different services work, what to look for in an online crypto lending platform, and the associated risks for both loaners and borrowers, from taxes to regulations.
Best Crypto Lending Platforms
Here is a short summary of why we think each broker belongs in this top list:
- CEX.IO - During our tests, CEX.IO’s crypto lending setup felt refreshingly straightforward. Rates typically ranged from 6–12%, and borrowers could flexibly adjust collateral ratios or repay early without penalties. What we liked a lot was the platform’s transparency — clear loan terms, real-time balance updates, and robust wallet encryption that made the whole process feel secure and professional.
- Nexo - During our tests, Nexo’s crypto lending platform delivered one of the smoothest user experiences around. Interest rates ranged from 6% to 15% depending on loyalty tier and collateral, with instant loan approvals and no credit checks. What we liked most was the transparency — real-time loan to value (LTV) tracking, insured custodial wallets, and automatic repayments kept the entire process friction-free.
- Gemini - Testing Gemini’s crypto lending setup, we found it impressively secure. Yields hovered around 4–8% depending on the asset, and collateralization ratios were clearly displayed before committing funds. The standout strength was transparency — every loan runs through regulated partners, and assets stay protected under Gemini’s institutional-grade custody framework.
- Crypto.com - Crypto.com’s crypto lending service integrates directly with the decentralized Compound protocol, letting users earn yield based on supply-and-demand interest rates. Through the Earn feature, users can deposit and withdraw seamlessly without interacting with smart contracts or managing cTokens manually.
- Coinbase - When we tested Coinbase’s crypto lending, the focus was on safety and compliance rather than just chasing the highest yields. Rates hovered around 4–6% on major assets, with fully collateralized loans and instant liquidity options. The standout factor was regulation — every transaction ran under strict U.S. oversight, backed by Coinbase’s proven institutional security standards.
- OKX - When we tested OKX’s crypto lending feature, the flexibility immediately stood out. Rates fluctuated dynamically with market demand — typically between 5–12% on major assets — while collateral terms were clear and easily adjustable. Security felt solid thanks to proof-of-reserves verification and multi-layer wallet protection, giving confidence even during high-volatility lending periods.
CEX.IO
"CEX.IO continues to serve a range of crypto investors looking to buy, sell, trade, hold and earn with low fees. The tiered pricing structure will appeal to active traders while rookie investors will enjoy the straightforward platform interface and excellent education."
CEX.IO Quick Facts
| Demo Account | No |
|---|---|
| Instruments | Cryptos |
| Regulator | GFSC |
| Platforms | TradingView |
| Minimum Deposit | $20 |
| Minimum Trade | $1 |
| Account Currencies | USD, EUR, GBP |
Pros
- There's a wide range of global payment methods available including PayPal
- CEX.IO has remained a trusted crypto exchange since its launch, with 5+ million users
- The proprietary terminal features an advanced charting package from TradingView, including 50+ technical indicators
Cons
- It's a shame that there's no demo account for traders looking to practice strategies
- Deposit and withdrawal fees are relatively high, including 0.3% + $25 for SWIFT withdrawals
- The broker has limited regulatory oversight
Nexo
"Nexo gives crypto traders the capability to trade, invest, lend and borrow digital assets in one place, and it’s especially good for its credit functions that pay out very high yields to lenders. However, its fees are relatively high and many day traders will prefer a more tightly regulated crypto broker."
Michael MacKenzie, Reviewer
Nexo Quick Facts
| Demo Account | No |
|---|---|
| Instruments | Cryptos |
| Platforms | Nexo Pro |
| Minimum Deposit | $10 |
| Minimum Trade | $30 |
| Account Currencies | USD, EUR, GBP |
Pros
- Nexo’s crypto staking and credit features support crypto lending and borrowing, and the yields lenders receive are among the best going
- Traders benefit from bonuses and incentives including free trading funds paid to lenders and cashback in the form of the exchange’s native Nexo token
- Traders can access perpetual futures to open long or short positions on crypto assets, increasing strategic opportunities
Cons
- The range of tokens is extensive compared to most crypto brokers but still much smaller than similar crypto exchanges like Kraken
- High maker/taker fees mean day traders will pay more to trade derivatives than they would at rival exchanges like Binance
- Very few educational resources are available, reducing its appeal to beginners who can find more helpful resources at category leaders like eToro
Gemini
"Gemini’s ActiveTrader platform and TradingView integration make it a good choice for serious crypto traders seeking a reliable charting environment, though we were disappointed by some unnecessary fees and previous security breaches."
Gemini Quick Facts
| Demo Account | No |
|---|---|
| Instruments | Cryptos |
| Regulator | NYDFS, MAS, FCA |
| Platforms | ActiveTrader, AlgoTrader, TradingView |
| Minimum Deposit | $0 |
| Minimum Trade | 0.00001 BTC |
| Account Currencies | USD, EUR, GBP, CAD, AUD, HKD, SGD |
Pros
- The TradingView integration delivers top-quality tools, including backtesting and algo trading capabilities
- The exchange ensures high security standards with 2FA a requirement for all crypto investors
- Crypto perpetual futures are available in many jurisdictions with up to 1:100 leverage
Cons
- There is no practice profile or demo account for prospective traders
- There are high fees for some funding methods including a 3.49% fee for card transactions
- Some larger coins by market cap are not available to buy through Gemini
Crypto.com
"Crypto.com is a snug fit for aspiring crypto traders who want to buy, sell and trade over 400 digital tokens. The interest paid on idle funds and intuitive staking opportunities also provide passive investing opportunities."
Christian Harris, Reviewer
Crypto.com Quick Facts
| Demo Account | No |
|---|---|
| Instruments | Crypto, Stocks, ETFs |
| Regulator | SEC, FCA, MAS, AMF, CySEC, CBI, ASIC, FINTRAC, CIMA, VARA, OAM, HCMC, CFTC, OSC, KoFIU |
| Platforms | Own |
| Minimum Deposit | $0 |
| Minimum Trade | $1 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, ZAR, TRY, SEK, NOK, DKK, CHF, HKD, PLN, CZK, AED, SAR, HUF, BRL, KES |
Pros
- Crypto.com uses a cold wallet solution that integrates multi-signature technology and geographic distribution to enhance security. This approach ensures robust protection of user assets with highly secure offline storage.
- Crypto.com has expanded beyond crypto in some regions, offering over 5000 stocks and ETFs for traders looking to build diverse portfolios and opportunities in different sectors.
- The platform supports unified portfolio tracking across cryptocurrencies, stocks, ETFs, and more recently prediction markets, all within a single interface, simplifying asset management for multi-asset traders and providing consolidated insights.
Cons
- Withdrawal fees apply to crypto transfers and fiat withdrawals, and these can be significant for active traders making smaller transfers. The minimum withdrawal limits are also relatively high, which restricts flexibility for managing smaller portfolios or quick liquidity needs.
- The app's high bid-ask spreads on many coins can be costly for traders placing market orders. Wide spreads mean the price you pay when buying is noticeably higher than the price you receive when selling, cutting into profits, especially on lower-volume trades.
- Customer support primarily relies on chatbots and email, with limited reliable phone support from our testing. This can lead to delays in resolving urgent issues, such as account access or transaction problems, which can be frustrating for crypto day traders who need quick assistance.
Coinbase
"Coinbase is ideal for beginners looking for an intuitive platform to buy and sell a wide variety of cryptocurrencies, with robust security and regulatory compliance. However, its fees are higher compared to competitors in our tests, and it’s not as tailored for short-term traders."
Coinbase Quick Facts
| Demo Account | No |
|---|---|
| Instruments | Crypto |
| Regulator | FinCEN, FCA, CBoI, MAS, OAM, DNB, BdE |
| Platforms | Coinbase, Advanced Trade, Wallet, NFT, TradingView |
| Minimum Deposit | $0 |
| Minimum Trade | $2 |
| Account Currencies | USD, EUR |
Pros
- Coinbase Advanced bolstered its leveraged trading offering with a suite of new futures products in 2025, including Ripple (XRP), Natural Gas (NGS), and Cardano (ADA), providing accessible ways to trade, hedge, or diversify.
- Coinbase Advanced has added TradingView integration, a feature rarely offered by crypto exchanges, allowing users to trade spot and futures markets directly from real-time charts with powerful technical analysis tools.
- As a Nasdaq-listed company, Coinbase follows strict financial regulations, with licensing across the US, UK, and Europe. Security includes FDIC insurance for USD balances (up to $250,000) and two-factor authentication (2FA).
Cons
- High crypto fees based on tests, especially compared to competitors like Kraken and BitMEX, and notably on the standard dealing platform.
- Frustrating customer support during testing, with most help options hidden behind login, making it tough for locked-out users or non-account holders to get assistance.
- There are woeful research tools; Advanced Trade has TradingView charts but lacks features like news feeds, economic calendars, and AI market insights.
OKX
"OKX is a top pick for crypto traders looking for emerging coins and crypto projects to invest in. Traders can also make use of the broker's copy trading service and automated bots."
OKX Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Spot, futures, perpetual swaps, options |
| Regulator | VARA |
| Platforms | AlgoTrader, Quantower |
| Minimum Deposit | 10 USDT |
| Minimum Trade | Variable |
| Account Currencies | USD, EUR, GBP, INR, JPY, SGD, RUB, AED, SAR |
Pros
- There's a vast developer lab plus access to a marketplace of pre-built trading bots with auto-arbitrage
- OKX maintains an excellent reputation with 20 million global clients and a license from the Dubai Virtual Assets Regulatory Authority
- In 2025, OKX secured a MiFID II license, enabling it to offer regulated derivatives products across Europe, providing peace of mind
Cons
- The firm offers limited regulatory oversight, though this is common among crypto brokers
- The broker's platform and features may be complex for novices
- The quality of customer support was inconsistent based on testing
Crypto Lending Overview
Token holders are increasingly looking for access to fiat money by leveraging their crypto supply. Fortunately, holders of cryptocurrency can borrow physical money such as USD, EUR, and GBP or lend their digital assets in return for interest payments. Crypto lending is available on dozens of popular coins and stablecoins, including Bitcoin and Tether.
Lenders and borrowers are connected via an online platform or exchange such as Binance, Kraken, and Coinbase. Platforms act as a third-party and intermediary, managing the transaction between the borrower and lender.
The two primary crypto lending strategies are centred around:
- Stablecoins – these tokens are typically pegged to a major fiat currency, such as the US Dollar, bringing some stability to an otherwise unpredictable market. Stablecoins are generally considered the lower risk option.
- Traditional cryptocurrencies – well-known cryptos and altcoins are usually more volatile and therefore the amount of interest you can earn can be unpredictable. This strategy suits those with a larger risk appetite.
Some investors also use crypto lending to capitalise on interest rate arbitrage. This is where you borrow an asset from one platform and lend it out on another at a higher price, profiting from temporary price discrepancies.
Crypto Lending For Investors
Investors can deposit their digital currencies into wallets on crypto lending platforms and receive weekly or monthly interest payments. Lending interest rates vary but can range from 3-7% for Bitcoin. Interest rates for more stable assets can be much higher, sometimes up to 17% for coins like USD Coin (USDC) and Binance USD (BUSD).
The worry of borrowers not repaying a loan is somewhat reduced with crypto lending as borrowers must stake between 25% and 50% of their own coins as security for the loan.
Crypto Lending For Borrowers
Crypto lending also allows you to borrow physical money so you can avoid selling your digital assets. Borrowers could be individuals or businesses looking for a temporary loan.
Generally, borrowers can use either crypto or fiat assets as collateral to secure a loan. Those borrowing against crypto assets normally need to ‘overcollateralise’, meaning they will need to lock up more than the overall value of the funds they are borrowing. Once you have paid back the loan, plus the incurred interest, the crypto collateral is returned. The key risk to highlight is the danger that the crypto collateral depreciates in value.
Crypto Lending Rates
Providers charge borrowers interest fees on their loans. Each crypto lending site will also have its own mark-up to take into account. Charges vary, but firms are fairly transparent about the fee structure at the sign-up stage.
The typical annual percentage yield (APY) for stablecoins is 10% to 18% while for standard cryptos, it’s 3% to 8%. The Kucoin exchange has even offered an APY of more than 25% for users lending cryptocurrency.
Note, if you don’t pay back your crypto loan, lenders can liquidate all or part of your collateral to recoup their losses. Also, collateral can be liquidised because of an unmet margin call—where platforms inform borrowers that they need to increase their collateral due to a change in the value of cryptos.
Pros Of Crypto Lending
Crypto lending has advantages for both borrowers and lenders:
- Easy access – you don’t need a bank account or credit check to start crypto lending or borrowing
- Automated – minimal effort is required with many crypto lending platforms. Simply activate the bot and sit back
- Cheap borrowing – compared to credit cards and unsecured loan rates, interest rates are relatively low. You can even use lending services without putting down any collateral
- Speed – crypto loans are often approved with minimal checks, giving users access swift access to cash
- Flexible – users can switch between multiple tokens on the same crypto lending platform
Risks Of Crypto Lending
There are also a few drawbacks to crypto lending services:
- Volatility – due to the volatile nature of cryptocurrencies, the collateral needed can change at any time. This is why most crypto loans are overcollateralised, though stablecoins offer a means to avoid this
- Risk – borrowing money is always risky, especially if you cannot pay the funds back. Prospective users should think carefully before getting started
- Limits – users are limited on how much they can borrow based on the percentage of crypto needed to stake the loan
- Restrictions – some programs require borrowers to stake their crypto for a fixed period, for example, 30 days
How To Get A Crypto Loan
Use our step-by-step guide to obtaining a crypto loan:
- Choose a platform – this is a key decision – see our detailed guidance below on choosing between providers
- Request a loan – once you’ve signed up with a platform, use the self-serve form on the provider’s website to log your request
- Collateral – the platform will calculate how much crypto or fiat collateral you need to put down to secure the loan. Note, you won’t get your stake back until you have paid back the loan
- Deposit – deposit the collateral amount using the account details provided on the crypto lending platform
- Receive funds – once your application has been approved, you will see the funds loaded into your account
- Payments – depending on the terms of your loan, you will likely need to pay weekly or monthly interest on the funds borrowed
Note, you can also get unsecured crypto loans, which offer borrowers short-term liquidity and can be paid back in either fiat or crypto cash. The fees and risks with these forms of loans tend to be higher for the borrower and investor.
Comparing Top Crypto Lending Platforms
There is a good range of companies, apps and platforms available today that offer crypto lending. The key distinctions are around the coins available and the interest rates charged. Security, customer reviews and mobile access are also worth including in your comparison. We’ve broken down the important considerations in more detail below.
Centralised Vs Decentralised
Crypto lending platforms can be either centralised or decentralised. Centralised ecosystems, such as Binance, allow lenders and borrowers to agree on the terms of a loan while the management and transfer of funds are facilitated by the platform. These crypto lending platforms essentially act as a middleman.
Users generally need to create an account and go through KYC protocols to help prevent fraud. Some centralised crypto lending platforms protect assets via insurance or keep them in cold storage with a wallet like Ledger.
Decentralised crypto lending platforms remove the third-party element and simply connect borrowers to live lenders. Algorithms and sophisticated protocols automate loan payouts. These websites tend to offer less in the way of KYC checks and are subject to reduced regulations. Interest rates also tend to be lowered on DeFi platforms.
Fixed Vs Flexible
Crypto exchanges typically offer two types of loan: fixed and flexible. Fixed loans lock your deposit in at a predetermined rate for a set period (usually 3 months/90 days). The reward for leaving your crypto alone is higher interest payments.
Flexible lending and borrowing crypto is more aligned with a savings account at your local bank. Users can withdraw crypto at any time but the rate of return is lower. Gemini is a flexible crypto lending provider, paying a daily APY so you can earn compound interest on your coins.
Automation
There are two main types of crypto lending platforms: automated and manual. Automated platforms, such as Celsius, generate dividends for lenders as soon as they deposit assets into the platform’s digital wallet. This is a hassle-free option for users seeking passive income.
Conversely, manual crypto lending sites require you to personally stake and manage your assets to generate dividends. Borrowers set their requirements, from interest rates and the coins for collateral to loan volume and duration. Investors can then choose to accept or negotiate the terms of the loan.
Coin Offering
Not all cryptos are available on every platform. Also, each crypto has a different yield. For example, the yield on stablecoins typically ranges from 10% to 18% while standard crypto tokens come in at between 3% and 8%. It may be worth testing out several crypto lending platforms to diversify your investments and to spread risk.
Other considerations include:
- Lending duration – is the lending period fixed or variable? Platforms with no fixed requirement offer increased flexibility, especially for beginners
- Deposit limits – does the crypto lending platform require a minimum deposit? Platforms may ask for a significant up-front sum in collateral which won’t suit some newcomers
- Mortgage lending – some users are turning to crypto lending platforms to borrow the funds needed for deposits on homes. Whilst such loans are a risky option and not accepted by many mortgage providers, profits from crypto lending could, in theory, be used to fund a house deposit
Final Word On Crypto Lending
Crypto lending offers a means of generating additional income for holders of popular tokens while for borrowers, services offer fast access to cash. There are, of course, serious risks to take into account, especially with the volatility of the cryptocurrency market. Also, some believe that the industry is in a bubble so caution is advised.
Use this guide to get started crypto lending, from choosing from the list of best exchanges to understanding the risks involved.
FAQs
What Countries Is Crypto Lending Available In?
Crypto lending is available in many jurisdictions around the world, including Australia, Canada, India, Singapore, Germany, the UK, and the USA. Despite this, some regulators in Europe and further afield are clamping down on websites with Indonesia’s Financial Services Authority identifying and blocking more than 300 illegal peer-to-peer lending platforms in 2019. In addition, only a limited number of providers hold reputable regulatory licenses.
Is Crypto Lending Halal Or Haram?
Investing and using cryptos such as Bitcoin (BTC) and Ethereum (ETH) is generally considered Halal, so long as you are not gambling with your tokens. With that said, some believe that crypto lending, given the interest rate element, is considered Haram. It could be worth speaking to your local religious leader before getting started.
Is Crypto Lending Worth It?
Some spectators believe that the market size of crypto lending and borrowing is expected to reach $20.3 billion by 2027. Platforms can provide much-needed access to cash for borrowers while lenders can generate returns from tokens sitting idle. Of course, the cryptocurrency market is notoriously volatile so beginners should conduct thorough research before taking out a loan.
How Does Crypto Lending & Borrowing Work?
Individuals with tokens, such as Bitcoin, can loan their digital assets to others or put down their coins as collateral to get a fiat loan. Both centralised and decentralised platforms facilitate crypto lending services. Use our guide to finding the best providers with definitions of key terms explained.
Is Crypto Lending Safe?
Like most things, crypto lending is not risk-free. Prospective users should carefully consider the risks before getting started. It’s also important to choose a reliable platform with positive customer ratings.
What Are The Top 5 Crypto Lending Platforms In 2021?
There are several leading options on the market. Celsius is among the best with high lending rates on both stablecoins and standard cryptos. The platform offers 41 lendable coins including XRP and USDT. YouHodler is another popular option with high yields and close to 25 available coins. BlockFi is the largest crypto lending platform in the USA but has fewer lendable coins. Alternatively, Crypto.com, based in Hong Kong, offers among the highest yield rates and a large choice of coins but limits investment periods to 90 days. Other popular borrowing platforms include Genesis, Fulcrum, Nexo, Nuo, Gate.io and FTX. Solutions offer competitive lending rates, among staking pools, free aggregator calculators, micro lending, and more.