5 Best Platforms to Borrow Crypto and All There is to Know

There are a good number of really reliable crypto lending platforms in the crypto world today.

The number of these platforms has led to competition – these have affected the interest rate, loan terms and loan amount. The market force has made it more favourable to the lender and the borrower.

If you’re familiar with how bank loans work then you’re going to have little or no problem wrapping your head around this concept. On the other hand, If you’re new to how loans work altogether it won’t be long before you understand how crypto loans work. Just keep reading.

In this article, I’ll share with you 5 crypto lending platforms.

But before going down to the list, I’ll explain what a crypto loan is and how it works also, I’ll explain the Loan-to-Value concept which is necessary for having a good understanding.

What is Crypto Loan?

This concept allows crypto holders to borrow cryptocurrencies provided collateral is in place. Similar in some ways to commercial bank loans except a lot fewer processes are required and no paperwork.

Cryptocurrencies allowed as collateral include BTC, XRP, XLM, BNB, and BCH etc.

One key concept in the centre of crypto lending is the Loan-to-Value ratio. This determines the worth of assets kept as collateral should be in a particular ratio to the loan given. I must say that in most instances the collateral value outweighs the loan worth by at least 40 per cent. The reason is to make the lenders assets as safe as possible as we all know cryptocurrencies are highly volatile.

This should also help you see the big picture. If you’re looking at loaning $6,000 worth of digital assets to be converted to fiat currency then you should at least have around $10,000 worth of acceptable digital assets to keep as collateral.

Finally, crypto lending relies solely on peer-to-peer funding to work. Once a person indicates interest to borrow providing collateral the platform holds out for another to agree to lend.

See also  How to Withdraw from Flowextra

5 Best Platforms to Borrow Cryptocurrencies

  1. Nexo. This platform originated through TechCrunch founded by Michael Harrington in 2017, it renders its services through peer-to-peer and collateralized loans is only accepted on this platform. lenders on this platform are allowed to withdraw their money at any time without charges, while loaners are permitted to pay their loans partly or fully at any time with an interest rate of 5.9% per year and there’s no deposition limit on this platform.

There are over 2million users on this platform and its lending range is between $500 to $2M with a collateral deposit of 20% to 50% ratio. This site accepts and supports multiple cryptocurrencies like; BTC, BNB, XRP, EOS, LTC, XLM, ETH, TRX, BCH and Nexo etc.

How to apply for a loan on Nexo

Firstly, download a Nexo wallet, signup for an account by supplying the necessary information, then start the verification process, which is done at the “My Profile” tab. After verification, deposit a stable crypto coin and request for a loan, once the loan is approved, you can get the fund that you requested and also withdraw at any time.


  • Highly secured.
  • High insurance coverage.
  • Offers more fiat currencies than its rivals.


  • Higher interest rate compared to other loaning platforms.
  1. BlockFi. BlockFi is rated highly amongst crypto lending platforms across the globe, it was founded by Zach Prince and Flori Marquez in 2017 and it’s the only platform that’s paying monthly interest to every crypto depositing accounts on their platform.

Lenders are capable of withdrawing anytime with a one-time free withdrawal every month, after that a service fee of 0.0025 BTC or 0.0015 ETH is applied. They also offer a loan duration of 12 months with an interest rate of (0 to 25 BTC) 4%, (0.25 to 5 BTC) 1.5% and (up to 5 ETH) 4%,  and also there’s no minimum or maximum deposition on this platform and it contains over 50million users and equally supports over 45 fiat currencies such as; BTC, USDT, ETH, PAXG, LTC, USDC, and PAX etc.

How to apply for a loan on BlockFi

Open up an easy safe and secured blockchain account with BlockFi, step into the site and locate the “get started” option, provide your email and password in other to create an account. A verification confirmation code will be sent to your email, in which after this you are to initiate a deposit in other to confirm your identity, then lastly upload your valid documental picture (voters card, or drivers license etc) to complete the verification process and apply for a loan.

See also  Can you Search Facebook Marketplace without an Account? - Find Out!


  • No minimum requirements to earn interest
  • Trades between different crypto at a zero
  • percentage rate
  • Offers monthly interest to all depositors on the platform.


  • Higher withdrawal rate
  • Interest-only loans exist to users who deposited BTC, PAX, ETH, GUSD, LTC and USDC.
  1. Binance. Binance is a company that has its own cryptocurrency known as Binance coin (BNB) that’s frequently used today for transactions and payment of bills on Binance. The platform was created and developed by Changpeng Zhao in 2017 in Hong Mong.

In Binance, lenders cannot withdraw at any time and its loan term is from 7 to 90days. The charges rate on this platform only depends on the VIP level.

Binance is one of the advanced Crypto lending platforms that now allows the purchase using credit cards and it supports over 100 fiat currencies like; XRP, BCH, BTC, EOS and LTC etc.

How to apply for a loan on Binance

Binance is one of the best Bitcoin lending exchange sites, it offers two types of lending, platforms,  Fixed Deposits and Flexible Deposits. With the fixed ones you are supposed to lock your funds so as to determine the amount of time and interest rate available for you, while the Flexible ones allow you to withdraw the funds whenever you wish to and the interest rate also changes over time.


  • Interest exists on an annalized interest rate between 14 days interval
  • Greatly used by both experienced and new users


  • Offers short term loan.
  • There’s no instant withdrawal.
  1. Salt. The acronym “SALT” means, Secured Automated Lending Technology, this platform was founded in 2016 by Shaw Owen in Dever Colorado. The platform offers a minimum of $5,000 loan limit and its process involves using the Salt token. lenders on this can withdraw anytime with no originating or repayment fees and its loan duration lasts between the period of 3 to 12 months with an interest rate of 3.95% and 12.95% respectively. Salt bears no deposition limit and the site is enclosed with a high-security level and they equally support multiple cryptocurrencies such as; Dogecoin, XRP, DASH, PAX GOLD, ETH, BCH and LTC.

How to apply for a loan on Salt

Getting a loan on Salt is safe and easy, the first step that’s involved in creating your Salt account,   and secondly,  you need to fund your Salt Wallet with cryptocurrency. This is a multi-functional wallet that functions as a store for collateral and is able to automatically manage your lending terms.

See also  Is Medicine and Surgery a Good Course to Study in Nigeria? Find Out!

Your loan will be processed and approved and the funds will be automatically transferred to your bank account.


  • No conversation of coins to USSD is wanted for use in the server
  • Free from cybercrimes, scammers and secured for clients.
  • They allow the use of different crypto coins to stake for collateral for the loan.


  • Major loans incur higher repayment rates than normal banks
  • Small repayment windows.
  1. Youholder. Youholder is a rebranded platform that was founded by a Swiss-Bused Fintech company in early 2000, its aim is to foster higher quality service that enables users to take proper management of their digitalized assets. The platform allows all its lenders to make a withdrawal at any time, while loaners are attached with the interest rate of 30% to 90% and they accept multiple crypto coins as collateral with a duration of 60 to 180 days. This platform also supports over 20 crypto coins like; XLZ, UNI, XLM, LINK and MKR etc.

How to apply for a loan on Youhodler

Applying for a loan on YouHodler is quick and sade, firstly you will be required to set up your account and provide scans of your ID to verify it. Only then you will be able to make a deposit and request a cash or crypto loan using your preferred collateral. It takes only about a minute to get the result of your request.

N/B: The options for cashing out a loan include bank wire transfer and credit card and those who take out loans in cryptocurrency can use YouHodler’s exchange feature to convert it to Bitcoin, stablecoins, or fiat.


  • The minimum loan amount is $100
  • Loans are only available on stabled crypto coins or fiat


  • Services are not available for US citizens
  • Longer loan terms attract higher interest rates.

That’s it with getting loans with collateral.

People also wonder, can cryptocurrencies be borrowed without collateral?

Well, there’s a chance you’ll see opportunities to get collateral-free crypto loans but that they say it doesn’t mean it’s true. They are likely going to ask you to pay a fee so you get the loans that is where someone might get scammed.

The truth is, there is no legit platform out there that offers collateral-free crypto loans so don’t fall for it.

We’ll like to know your thought on this topic you can use the comment box.

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *