Find the best Crypto-backed loan platforms. Compare the lowest interest rates and the highest loan-to-value ratio.
NEXO Instant Crypto Credit from 0% APR
CoinRabbit Crypto-Backed Loans
CoinRabbit offers users to borrow crypto-backed loans as well as earn competitive interest rates on their digital assets.
- No KYC or credit checks
- 140+ currencies as collateral
Read more in our Coinrabbit review.
Crypto.com Credit Line
Crypto.com is the largest crypto platform listed on this page. Crypto.com is a complete ecosystem around cryptocurrencies, including crypto-backed loans, called credit lines.
- Interest rates from 8-12%
- The best crypto debit card on the market
- NFT marketplace, Desktop Exchange, Earn product in the app, and much more
YouHodler Crypto-Backed Loans
YouHodler has some advantages and disadvantages over other crypto-backed lending platforms.
As you can see in the table, YouHodler offers a low minimum value on the loan. In addition, they have the greatest LTV value.
- Up to 90% LTV (Highest on the market)
- 50+ collateral options
- The low minimum amount for a loan
- Can receive your loan in many different currencies
Crypto-Backed Loans FAQ
How does a crypto-backed loan work?
A crypto-backed loan offers USD/USDT/USDC loans collateralized by your crypto assets.
What does that mean?
You will get USD/USDT/USDC when you give your Bitcoin (BTC), Ether (ETH), or Litecoin (LTC) as security for repayment.
It’s really that simple.
In addition, the such loan application can go really fast since the security is in the crypto which is secured on the blockchain.
What is Loan-to-value (LTV)
The loan-to-value is how much you can borrow with regards to how much you can put as security.
If Bitcoin is worth $20.000 and you put 1 Bitcoin as security to borrow $10.000, your loan-to-value ratio is 50%.
Is there a credit check on a crypto-backed loan?
No, usually not. Your crypto works as collateral and security instead of for complicated and time-consuming credit checks.
Always read the terms and conditions before you sign any agreement.
Do I need to do KYC for a crypto-backed loan?
Most crypto-backed lending platforms do require KYC verification. However, Coinrabbit allows crypto-backed loans with no credit check or KYC.
Do I earn interest on my collateral with crypto-backed loans?
No, usually you will not earn any interest on your collateral.
What will happen if my colleteral decreases in value?
If your collateral decreases in value the company will make a margin call. A margin call is a request to increase your collateral to avoid liquidation. If you don’t increase your collateral in case of a margin call, you will risk losing your collateral since the company will liquidate it to make sure you can cover your debt.
At what LTV level will I get a margin call?
Different companies have different levels, but around 70%-80% is common for the first margin call.
For example, BlockFi has this procedure
- At 65% LTV BlockFi will send a notification to highlight your position is approaching margin territory.
- At 70% LTV, your loan enters a Margin Call. At this stage, action is required to restore your loan to below 70% LTV. Upon reaching the margin threshold, you now are granted 72 hours to cure your margin and bring your LTV ratio back to a healthy level.
- At 80% or above the liquidation triggers. If your margin is not cured within 72 hours or if the LTV reaches 80% or more (even within the 72 hours of the cure period), we may liquidate, at our sole discretion, a portion of your collateral to bring down your loan LTV to a healthy level.
What is the main risk with crypto-backed loans?
The main risk is that your collateral is decreasing in value and you will receive a margin call where you have to increase your collateral value (deposit more funds).
If you can’t increase your collateral at this point you will risk losing your collateral since the company will force a liquidation to cover your loan.
Read more about crypto risk management strategy.