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You can use your existing cryptocurrency to get a loan, usually in the form of USD fiat currency, stablecoins or Bitcoin (BTC), without selling them away.
This method is commonly known as crypto lending, crypto borrowing or crypto yield farming. No matter the term used, the result is the same, which is getting a loan (usually fiat currency) from your crypto collateral (various crypto types supported).
The table below shows the comparison between the various crypto lending (borrowing) platforms and their different rates & services.
| S/no | Platform | APR Interest | Loan-to-Value (LTV) | Collateral | Loan Term | Loan Types |
|---|---|---|---|---|---|---|
| 1 | MyConstant | 6% to 7% | 66% | 80+ crypto | Unlimited | USD, stablecoins or crypto |
| 2 | BlockFi | 4.5% | 50% | 4 crypto | 12 months | USD |
| 3 | Youhodler | 1% to 13% | 90% | 30+ crypto | Unlimited | USD, EUR, CHF, GBP, BTC or Stablecoins |
| 4 | Ledn | 9.90% | 50% | Bitcoin only | 12 months | USD and USDC |
| 5 | Vauld | 7.50% | 66.7% | 11+ | Anytime | USD |
Best Crypto Lending
This article will list down all the five (5) BEST Crypto Lending Platforms you can use your crypto as collateral to get a loan.
1. MyConstant
Started in 2019 and headquartered in California, MyConstant is a global P2P cryptocurrency and USD lending platform. It has satellite offices in Southeast Asia with an international team of engineers, creatives and economists.
The company offers borrowing against your cryptocurrency for as little as 6% APR through their P2P lending platform. It supports over 66+ different cryptocurrencies, both available for collateral and for the loan type.
APR – Loan Interest Rates
Three (3) fixed terms available; 6% APR for 30 days, 6.5% APR for 90 days and 7% APR for 180 days.
Loan amount
The maximum loan amount is up to USD 50,000 in one order. To borrow more, you can split your loan into separate orders. The amount limitation is the effort to limit the risk of liquidation affecting the sale price and the ability to repay investors.
Loan Processing Time
Processing time can be immediate within the same day, as long as the collateral is in your MyConstant account.
Loan Details
- No credit scoring or background checks will be conducted as MyConstant only offer secured loans backed by collateral.
- Once the loan is approved, you can get USD straight to your bank account or trade your loan for cryptocurrency.
- MyConstant charged an upfront initial 3.5% fee when you used their platform to match with a lender. This is for the platform’s maintenance fee.
Is It Worth the TRY
The company is relatively sound and well-known in the industry. The 6% APR borrowing interest rate is considered low among many platforms out there.
To start borrowing, register with MyConstant. Click the <Borrow> menu and select <Crypto-backed Loans> on the main homepage. Key in the amount you want to loan, select your collateral asset and loan term.
2. BlockFi
Founded in 2017 and headquartered in New York, U.S, BlockFi provides financial services to individuals and businesses worldwide and in all 50 U.S. states. Some of BlockFi’s offerings include interest-earning accounts, low-cost USD loans secured with crypto and fee-free trading.
BlockFi offers USD loans collateralized by your crypto assets. This means BlockFi give you USD, and you give the company your Bitcoin (BTC), Ether (ETH), or Litecoin (LTC) as security for repayment. For as fast as 90 minutes, your bank account can be directly funded in USD, GUSD, or USDC.
APR – Loan Interest Rates
Loan interest rates vary between the crypto (BTC, Ether or LTC) you are using and the current interest rate offered. However, you can generally borrow money at rates as low as 4.5% APR.
Loan Details
Collateral amount based on a 50% Loan to Value (LTV). In order to loan $10,000, you must have at least $20,000 fiat equivalent worth of your cryptocurrency deposited in BlockFi as collateral.
It takes 2 minutes or less to apply for a BTC loan. Once submitted, the BlockFi team will review and give you a decision and present you with loan terms within hours. After you accept and send your collateral, BlockFi will wire USD directly into your bank account.
BlockFi lends in over 45 U.S states, making them the largest, fastest, and most affordable crypto asset-backed lender in the U.S. If you’re looking for a way to leverage your crypto asset holdings without selling, this platform is worth registering and considering. The loan term is twelve (12) months.
Is It Worth the TRY
BlockFi is well-recognized in the DeFi space. On 14 February 2022, BlockFi announced that it had reached a resolution with the Securities and Exchange Commission (SEC) and state securities regulators to start the registration process for the offering of BlockFi Yield (similar to BIA). It will be the first SEC-registered crypto interest-bearing security if eventually approved.
To start borrowing, register with BlockFi, and start depositing and leveraging your crypto collateral to obtain low-cost USD loans directly to your bank account.
3. Youhodler
Founded in 2017, Youhodler is an EU and Swiss-based FINTECH company that offers crypto loans, an exchange for crypto conversion and a crypto savings interest account. Users can earn up to 12% APR for savings accounts by depositing their crypto and earning interest in Bitcoin (BTC) and stablecoins.
For cryptocurrency loans, you can use your crypto as collateral to get instant cash loans and cryptocurrency loans in EUR, USD, GBP, CHF, Tether (USDT), or Bitcoin (BTC). YouHodler has the highest loan to value ratio (90%), with minimum loan amounts starting at just $100.
APR – Loan Interest Rates
Depending on the type of cryptocurrency collateral, different APR interest rates apply. For example, for Bitcoin (BTC), it is 2.5% for 30 days and 13.5% for 365 days. Therefore, the loan term can be from 10 days to 365 days.
Loan Details
- YouHodler accepts the top 40 coins as collateral.
- Instant credit card and bank withdrawals included.
- Close loan term without repay
- Flexible repayment date and loan-to-value options.
- Full repayment is required only for full collateral return.
Is It Worth the TRY
User’s digital assets are safely guarded with Ledger Vault’s advanced custody and Fireblocks security options. YouHodler is also an active member of the Blockchain Association Financial Commission.
To start borrowing, register with Youhodler, and start depositing and leveraging your crypto collateral to obtain low-cost USD loans directly to your bank account.
4. Ledn
Founded in 2018, Ledn is a multi-faceted crypto-fiat financial service that offers its users Bitcoin (BTC) and USDC savings accounts and cryptocurrency loans. The company is a Toronto-based team in partnership with Genesis Capital, a large digital asset lender that requires no minimum deposit amount to start earning crypto interests.
For crypto loans, the application process will take less than 2 minutes. In addition, Ledn is the first digital asset lending company in the crypto industry to complete a Proof-of-Reserves by Armanino LLP.
APR – Loan Interest Rates
7.90% Annual Interest and 9.90% APR.
Loan Details
- Loans are funded within 24 hours of approval.
- The minimum loan amount is 100 USD.
- Pay off your loans at any time without penalties.
- No monthly payments are required.
- Loan payouts will be in either cash, USDT or BTC
Is It Worth the TRY
All crypto operations are in accordance with Cryptocurrency Security Standard (CCSS). In addition, the company uses SSL for encrypting data and OAuth 2.0 tokens invalidation algorithm for authentication. On top of these, the company regularly runs external security audits on its platform.
To start borrowing, register with Ledn, and start depositing and leveraging your crypto collateral to obtain low-cost USD loans directly to your bank account.
5. Vauld
Launched in 2018, Vauld is a lending platform with its headquarters in Singapore and a product & tech office in India. The company run a lean, agile team of business managers, engineers, designers and product managers.
The company enables customers to buy, lend, borrow and trade crypto assets from their platform. Besides offering their crypto savings account (fixed deposit feature), they also provide crypto swapping and trading features.
APR – Loan Interest Rates
Different crypto collaterals vary in terms of interest rates. For example, it is a 7.50% APR for using Bitcoin (BTC) or Ethereum (ETH) as collateral to get a loan.
Loan Details
- The minimum loan amount is $1000.
- Pay only the interest accumulated during the loan duration.
- No additional charges and no hidden fees.
Is It Worth the TRY
Vauld has its own seed investors from the crypto and finance community. One of which is Pantera, a Singapore-based crypto venture capitalist.
To start borrowing, register with Vauld to start depositing and using your crypto collateral to obtain up to 66.67% LTV of the loan directly to your bank account.
Summary
Depending on your needs and crypto collateral, you can refer to the table below to determine which lending platform you prefer, such as LTV values and APR rates.
| S/no | Platform | APR Interest | Loan-to-Value (LTV) | Collateral | Loan Term | Loan Types |
|---|---|---|---|---|---|---|
| 1 | MyConstant | 6% to 7% | 66% | 80+ crypto | Unlimited | USD, stablecoins or crypto |
| 2 | BlockFi | 4.5% | 50% | 4 crypto | 12 months | USD |
| 3 | Youhodler | 1% to 13% | 90% | 30+ crypto | Unlimited | USD, EUR, CHF, GBP, BTC or Stablecoins |
| 4 | Ledn | 9.90% | 50% | Bitcoin only | 12 months | USD and USDC |
| 5 | Vauld | 7.50% | 66.7% | 11+ | Anytime | USD |
