Best Crypto Loan Platforms May 2024

Plus, a complete guide to getting a loan backed by your crypto.
Published: June 14, 2023   |   Last Updated: February 19, 2024
Written By:
Eric Huffman
Eric Huffman
Staff Writer
Edited By:
Shannon Ullman
Shannon Ullman
Managing Editor

CeFi Loan Platforms

Below are centralized loan platforms which allow you to use your crypto holdings as collateral to borrow fiat currencies like US Dollars. The table shows which tokens you can use as collateral and the interest rates you can expect on a fiat-based loan.

DeFi Loan Platforms

Below are decentralized loan platforms which allow you to use one crypto as collateral to borrow another crypto. The table shows the current interest rates to borrow each listed token, regardless of the token you use for collateral.

Key Takeaways

  • You can borrow fiat currency like US Dollars against your crypto holdings, then use the loan to buy more crypto, purchase a car, or Instacart the gallon of milk you forgot at the store.
  • Crypto loans work much like a home or auto loan—your crypto secures the loan, and the provider can sell your crypto to cover the loan if you fail to repay.
  • In some cases, you can borrow without a credit check or stating the loan purpose–and in Decentralized Finance (DeFi), you can borrow without giving anyone your name.

What Does It Mean To Borrow Against Your Crypto, Exactly?

Alright, so you know how a normal loan works, right? You don’t have enough cash for something you want, like that new Range Rover or a Liberal Arts degree (that costs six figures, but you’re positive will be worth it), so you apply for a loan. Once you’re approved, the loan provider (usually a bank or other financial institution) gives you some dough and a repayment schedule. The repayment is typically monthly and covers the principal of the loan as well as interest, or just interest in the case of an interest-only loan.

Borrowing against your crypto allows you to get a lump sum of money in return for putting up your cryptocurrency assets as collateral. In the case of a traditional loan, a physical asset such as a car or a house may be the collateral for the loan (which means the provider will happily snatch them back if you don’t pay up.) With crypto loans, the borrower deposits their cryptocurrency assets as collateral.

The borrower still owns these assets, even while they’re being held as collateral, so if the market price of the assets goes up, the borrower still benefits from that sweet, sweet appreciation.

There are plenty of people out there with deep pockets who would be happy to front you cash for a bit of interest. These people provide the loans through borrowing platforms, which we’ll discuss later.

Want to learn more about how this works from a loan provider’s perspective? Check out our crypto lending guide here.

Borrowing Crypto in 2023: Industry Insights

2023 brings a wiser approach to crypto borrowing following 2022’s crypto mishaps. In 2022, two popular crypto platforms, Celsius and BlockFi, filed for bankruptcy protection following the fallout from the Terra Luna collapse. We learned the industry is deeply intertwined, and if one company implodes, it can create ripple effects or even tidal waves for other companies (Cough, cough, FTX.)

Going forward, expect collateral requirements for borrowers to increase as loan providers reassess their risk strategies. This is because much of the growth in 2023 and beyond is expected to come from decentralized protocols (run by computers and algorithms vs. negligent CEOs,) which typically require over-collateralization (your collateral needs to be worth more than what you’re borrowing.)

In the decentralized finance (DeFi) world, you’ll still be able to borrow against your crypto (and NFTs), but you’ll have to put a bit more on the table – or reduce the loan size – compared to the crypto loans of yesteryear.

Pros And Cons Of Borrowing Against Your Crypto


  • Access cash without selling, as the sale of your crypto could trigger taxes
  • Low interest rates for certain loan types, especially compared to traditional banks
  • Nearly instant access to borrowed money, vs. weeks or months via traditional loans
  • Crypto loan providers don’t typically check personal credit history


  • Risk of margin calls (more collateral required) or liquidation (the provider sells your collateral to repay the loan)
  • The loan provider might become insolvent, making your crypto inaccessible or lost entirely
  • Some providers lend out your collateral to others or use your collateral in trades. Both situations can put your collateral at risk

Who Should Borrow Against Their Crypto?

Borrowing against your crypto isn’t for everyone, but for some people, it could be a good fit.

  • People who want to access the value of their crypto without selling. If you have $20,000 worth of Bitcoin and happen to need $20,000, you could just sell. But then you have to pay capital gains taxes if you have a gain on your Bitcoin investment. And you might miss out on future gains if Bitcoin goes to the moon after you sell. Borrowing with a crypto loan gives you access to cash without selling your crypto.
  • People who value financial privacy. Most times, you can get a crypto loan without a credit check and without nosey bankers asking how you’ll use the funds. It’s your thing, do what you wanna do.
  • People who are crypto-rich but cash poor. If you’re the type of person who buys crypto with every nickel you find in the couch cushions, you probably don’t have any nickels left. A crypto loan lets you access the value in your mile-high crypto stack without having to sell.

How to Borrow Crypto in 6 Steps

Step 1: Choose Your Borrowing Platform.

A borrowing platform is a middleman between you (the borrower) and the loan provider. It’s kind of like Uber—connecting people who’ve had one too many with the drivers they need to get them home. Not sure how to choose a borrowing platform? Don’t worry, we’ll cover a few popular options and how to choose in just a sec.

Step 2: Choose A Crypto Asset As Collateral.

Okay, at this point, you should have chosen a borrowing platform. Sweet! Now it’s time to fork over some crypto to get your loan. As we mentioned earlier, crypto loans require collateral. Which ones can you use?

  • Bitcoin (BTC): It’s a popular option, and certain platforms will let you put up BTC as loan collateral to receive stablecoins (coins that track the value of fiat like USD), like USDC or DAI, in return
  • Ethereum (ETH): Lots of borrowers opt to put up ETH as collateral, as it is supported by virtually every borrowing platform, and the value doesn’t fluctuate as much as it does with many other types of tokens.

Loan providers avoid collateral that’s–shall we say–iffy. This includes most of today’s cryptocurrencies. Makes sense. After all, the collateral is the only value that backs the loan. And what good is the collateral if it can’t be sold quickly or if the loan provider will take a loss selling it? No worries, the big cryptos that make up most of the market can usually be used as collateral with your choice of loan platforms.

Step 3: Choose Between An Interest-Only or Interest & Principal Loan.

When you borrow against crypto, you may have the choice between an interest-only loan or a conventional loan, where you repay both interest and principal over time. There are potential benefits and downsides to both options.

An Interest-Only Loan: You’ll need to pay interest on the loan itself for a defined term without paying down the principal throughout the life of the loan. Once the term is over, you’ll owe any remaining interest plus the principal in either one lump sum or in monthly payments.

  • The Good: This type of loan can help keep your payments low initially.
  • The Bad: You may have a high lump sum payment or high monthly payments over the long run.

An Interest And Principal Loan: This loan requires you to make regular (typically monthly) payments for both the interest and the principal combined. The repayment schedule usually starts shortly after the loan has been issued and continues for a specified term until the loan and interest are fully repaid.

  • The Good: This loan doesn’t start out with low initial payments, but it keeps payments consistent from month to month throughout the life of the loan.
  • The Bad: Interest-only loans are typically more expensive than interest and principal loans, as the risk of default tends to be higher. Part of this default risk stems from the loan-to-value (LTV) ratio, which is the loan balance compared to the value of the crypto you provide as collateral. With an interest-only loan, the loan balance remains untouched. You’re just paying interest. Market downswings that affect the value of the collateral could cause the borrowing platform to sell your crypto to pay off the loan balance.

What is loan-to-value (LTV) and how does it affect loan rates? Check out the dropdown below for the full rundown.

Loan-to-value isn’t just a crypto borrowing term. You’ll find it in auto loans and home loans as well. LTV is just a simple way to compare the loan value to the value of the collateral (the thing you might give up if you don’t repay the loan).

An easy way to calculate the LTV is to divide the loan balance by the value of the crypto you post as collateral and then multiply by 100.

For example, if you put down $10,000 worth of Bitcoin as collateral and borrow $4,000 of USD, your LTV is 40%.

($4,000 / $10,000)*100 = 40 (40% LTV)

But the LTV on a crypto loan changes based on the market price of your collateral. To use the example above, maybe Bitcoin goes wild, and now your collateral is worth $20,000. Nifty. Now, your LTV is only 20%.

($4,000 / $20,000)*100 = 20 (20% LTV)

But the market giveth, and the market can also taketh away. If the price of Bitcoin takes a swan dive ending in a belly flop, your LTV increases. Ouch. What if your Bitcoin is only worth $5,000 instead of $10,000?

($4,000 / $5,000)*100 = 80 (80% LTV)

In this example, your crypto is probably a misty-eyed memory (but you get to keep the loan proceeds). Many crypto platforms will liquidate (sell) your crypto to cover the loan even before the LTV reaches 80%. Loans with higher LTVs are riskier to borrowers who value their crypto.

As you pay down the loan, LTV usually decreases. But if the value of the collateral also falls, the LTV might still go up. If your original $4,000 loan balance drops to $3,000, but your collateral value falls from $10,000 to $5,000, your LTV is now 60%. As you can see, LTV is always a moving target because the numbers in the formula change over time.

($3,000/$5,000)*100 = 60 (60% LTV)

A higher LTV at the time of the loan usually means you’ll pay a higher interest rate because there’s a bigger risk that the loan platform may have to liquidate your collateral. The flip side is that a lower LTV often means lower interest rates.

If you venture into DeFi-land for your crypto loan, you might also see the term collateral ratio–which is like LTV but in reverse. For example, a 200% collateral ratio is the same as a 50% LTV. The collateral is worth twice as much as the loan balance.

Want an example of how each loan type would play out? Check out our example below for the numbers.

An Example

Interest-OnlyInterest And Principal
Loan Amount$5,000$5,000
Loan Term12 months12 months
Interest Rate9.95%9.95%
Monthly Payment$41.46 for 11 months, + a lump sum of $5,041.46 in month 12$439.46 monthly for 12 months
Total Amount Paid$5,497.52$5,273.52

An interest and principal loan is less expensive if the interest rate and loan length (term) are the same. An interest-only loan costs more over the full loan term but has lower monthly payments–until the final payment, which includes a lump sum payment.

Step 4: Choose How Much You Want To Borrow.

We discussed loan-to-value earlier. Here it is in action. LTV determines how much you can borrow. Most crypto loan platforms cap LTV at 80% or less, meaning if you wanted to borrow $4,000, you’d have to post at least $5,000 as collateral. But remember, higher LTVs usually mean more risk of liquidation, and they come with higher interest rates. You’ll save money on interest and reduce your risk by keeping the LTV low. Consider an LTV of 35% or less if possible.

Step 5. Connect Your Wallet To The Exchange or Borrowing Platform.

Alright. Now that you’ve gotten through the first few steps, it’s time to give the loan provider access to your crypto collateral. You’ll do this by connecting your wallet (the place where you store your crypto) to the borrowing platform you chose in Step 1. The platform will give you directions on how.

Step 6: Transfer Your Crypto Collateral To Finalize The Loan.

Depositing your crypto collateral with the crypto loan platform is the last step. Another option on some platforms is to set up a private wallet key with the loan provider. This key gives the provider access to your crypto collateral if they need to sell it to cover the loan. In some cases, your borrowed funds are immediately available, in others, you may have to wait a day or two.

Which Crypto Can You Borrow?

Many crypto loans involve borrowing stablecoins, like Tether (UDST) or Circle (UDSC). These stablecoins track the value of a fiat currency, USD, in these two examples. Stablecoins hold their value while you move your funds to wherever you need to use the money. Not losing money between point A and point B is a good thing.

But you can also borrow other cryptocurrencies. It really just depends on which ones are available on the borrowing platform you’ve chosen. For example, Aave, a decentralized platform (we’ll explain what that means in just a bit), offers dozens of options.

Maybe you want to borrow some Wrapped Bitcoin using Ethereum as collateral. You can do that as long as the platform you choose offers Wrapped Bitcoin for borrowing and allows Ethereum as collateral. Wrapped tokens track the price of a “real” coin or token. Wrapped Bitcoin mirrors the price of Bitcoin but can be used on the Ethereum network.

These are the top 5 borrowed assets on Aave right now.

  • Ethereum (ETH)
  • USD Coin (USDC)
  • Dai (DAI)
  • Wrapped Staked ETH (wstETH)
  • Wrapped Bitcoin (WBTC)

Where To Borrow Crypto?

You can either borrow from a centralized platform or a DeFi protocol:

  • Centralized finance (CeFi) borrowing platforms are run by people. They have management teams and board rooms, and risk management departments. They also make mistakes sometimes, as evidenced by the long list of crypto loan platforms that went under in 2022. Like all businesses, some are run better than others. But CeFi borrowing is often a more people-friendly experience designed to walk borrowers through the process. It’s also the only way to borrow USD with your crypto.
  • Decentralized finance (DeFi) borrowing platforms aren’t run by people. DeFi is governed by computer programs called smart contracts–and lots of math. People have a smaller role in that people can vote on how the platform works and which features it offers. From there, computers take the wheel, using math to determine how much you can borrow with the collateral you offer and what the interest rate will be. On DeFi platforms, you can borrow stablecoins or other types of crypto, but not USD or other fiat currencies.

Note: CeFi loan providers will need you to verify your identity to comply with regulations, whereas DeFi platforms don’t need to know who you are at all.

Best CeFi Crypto Loan Platforms

Think a crypto loan might be right for you? You’ve got plenty of solid options.

1. Nexo

Nexo’s full-service exchange lets you choose more than 40 cryptocurrencies for borrowing using over 60 coins or tokens for collateral. Getting started is easy. Just deposit a supported crypto asset as collateral and borrow with instant approval. Funding can take up to 24 hours.

Why Borrow With Nexo?

  • Rates start at 0% for borrowing and never exceed 13.9% — which means that this platform is often the cheapest way to borrow.
  • You have the choice between fiat, crypto, or a combination of both to repay your loan.
  • Instant approval with no credit checks. Funds are typically available within 24 hours.
PlatformSupported Collateral TypesInterest RatesOrigination FeesLoan TypesLTV RangeMin/Max Loan Size
Nexo60+, including BTC, ETH, BNB, DAI +more0% – 13.9%Custom repayment schedulesCustom repayment schedules15% – 90%$50 to $2,000,000

2. Arch Lending

Arch Lending is a US-based provider of overcollateralized crypto & fiat loans. Borrowers can take out loans in US dollars or USDC stablecoins against a variety of crypto assets and even equity shares in select high-growth startup companies. While it only supports 11 cryptocurrencies as collateral, Arch provides a high-quality experience for US borrowers looking to borrow US-denominated funds.

Supported Collateral TypesSupported Borrow AssetsInterest RatesLTV RangeLoan TermInterest Rate TypesOther Fees
+ Equity shares from one of 33 approved private companies
FIAT USD & USDC12%Up to 65%Up to 12 monthsFixedLiquidation fee of 2%

If you want even more data on the risks and benefits of crypto exchanges, check out our guide on the best crypto analysis tools.

Risks: CeFi Loans

Crypto loans can be powerful tools, but as with all power tools, there are risks to consider and ways to use them more safely. Here are some risks for CeFi loans to weigh before you make any moves.

  • Margin Calls: If the value of your collateral assets falls, your loan may reach an LTV threshold that triggers a margin call. Basically, a margin call is a request that you pay down part of the balance to bring the LTV back in check. Here’s the risk: If you don’t respond to the margin call or the market sells off quickly, the loan provider might sell your collateral to cover the loan or sell enough to bring the LTV back down. Keep an emergency fund ready, just in case.
  • Platform Insolvency: With most crypto loans, you’re transferring your crypto collateral to the provider for safekeeping. Sometimes, crypto loan providers get themselves into trouble, though. If they hit hard times, they might pause withdrawals or even file for bankruptcy–putting all or part of your crypto at risk.
  • Cyber Attacks: Paraphrasing the famous movie line, bank robbers rob banks because that’s where the money is. Hackers target crypto platforms for the same reason. Many crypto loan providers carry insurance against hacks and breaches, but there’s still a risk because crypto-laden lenders make such a tempting target (and might not have enough insurance).
  • Rehypothecation: Rehypothewhat? Okay, last big word for today. When a loan provider uses your collateral for another purpose, it’s called rehypothecation. Maybe they lend it out to someone else, or maybe they gamble it away on bad bets in the big crypto casino. Who knows? But it can happen, and it’s a risk. Research the platform first to see if they reuse your collateral in any way.

In short, try to reduce your risk by choosing low LTV loans and choose carefully when selecting a borrowing platform. And read the fine print, so you know what they’re doing with your crypto.

Best DeFi Crypto Loan Platforms

CeFi isn’t the only way to get a crypto loan. DeFi is the new kid in town, and it’s getting easier to use every day. With DeFi loans, you’re borrowing from other crypto people via smart contracts on the blockchain instead of going through a centralized company.

1. Aave

Aave is both fun to say (Ahvay) and intuitive to use. The DeFi borrowing platform lets you borrow on your choice of seven blockchains, each with up to 15 cryptocurrencies available for borrowing. If there’s a gotcha with Aave, it’s that you’ll get a variable rate when borrowing in many cases. Variable rates are based on supply and demand, so rates for low-supply tokens can spike. People often use Aave for short-term borrowing or even flash loans (fixed-fee loans that are repaid within seconds) to reduce risk from variable rates.

Why Borrow With Aave?

  • More supported blockchains reduces the need to move crypto across chains
  • Large lending pools for popular tokens help keep interest rates low
  • Advanced traders can use flash loans to take advantage of arbitrage opportunities.
PlatformSupported Collateral AssetsSupported Borrow AssetsInterest Rate RangeFlash Loans Offered?LTV RangeInterest Rate TypesOther Fees
AaveWBTC, ETH, MKR, USDC, & moreWBTC, DAI, MKR USDC, & moreSubject to supplyYes35% – 80%Fixed or variableGas fees

2. MakerDAO

Maker’s loans are what make the popular DAI stablecoin possible. DAI tracks the value of the dollar, and it’s backed by collateral assets from the community. Deposit a supported asset, like ETH or WBTC, and take out DAI as a loan using the Oasis app. MakerDAO isn’t as easy to use as Aave, but offers lower interest rates in some cases, possibly as low as 0.25%.

Why Borrow From Maker?

  • Maker offers low interest rates, depending on the collateral asset.
  • Borrow in DAI, which is widely supported on exchanges and pegged to the US dollar.
  • Users can easily re-collateralize or draw additional DAI directly from the Oasis dashboard.
PlatformSupported Collateral AssetsSupported Borrow AssetsInterest Rate RangeFlash Loans Offered?LTV RangeInterest Rate TypesOther Fees
MakerDAOWBTC ETH MATIC + moreDAI0% – 6%Yes54% – 99%VariableGas fees

3. Compound

Although not as easy to easy as Aave, Compound offers similar options: crypto loans and borrowing. In practice, Compound Finance also works similarly to Aave. Loan providers fund pools from which borrowers can borrow–if they have collateral to secure the loan. You’ll find fewer selections of cryptos to borrow compared to Aave, but because both platforms use variable rates, you might score a lower rate by keeping Compound Finance on your list of options. Compound only supports the Ethereum network.

Why Borrow From Compound?

  • Earn COMP governance tokens for both crypto loans and borrowing.
  • Compound’s open-source code is regularly audited.
  • Pay back the loan on your schedule (interest accrues).
PlatformSupported Collateral AssetsSupported Borrow AssetsInterest Rate RangeFlash Loans Offered?LTV RangeInterest Rate TypesOther Fees
CompoundWBTC ETH YFI DAI + moreWBTC ETH YFI DAI + moreSubject to supplyNo65% – 85%VariableGas fees

4. Alchemix

Alchemix puts a magical spin on crypto borrowing with its “self-repaying loans.” The steps to set up your loan are similar to other DeFi platforms–you deposit collateral, and then you can borrow against it. Same stuff. But Alchemix loans pay themselves off over time. Huh? What kind of sorcery is this?

The alchemy behind Alchemix is based on yield and over-collateralization. When you deposit collateral, your deposited crypto earns interest through Yearn Finance, which can then pay down your loan and its interest. Alchemix also limits LTV to 50%, and sometimes only 25%, which gives you more breathing room and helps prevent liquidations.

Why Borrow From Alchemix?

  • Your loan can pay itself off.
  • Borrow up to 50% of your deposited collateral.
  • Close out your loan at any time.
  • The platform doesn’t lock your deposit or charge you fees.
PlatformSupported Collateral AssetsSupported Borrow AssetsInterest Rate RangeFlash Loans Offered?LTV RangeInterest Rate TypesOther Fees
AlchemixWETH, DAI ,USDC, USDTYearn and Aave versions of your deposited asset0.17% – 3.85%No25% – 50%VariableGas fees

Risks: DeFi Borrowing

Similar to CeFi loans, DeFi loans come with some risks. But, unlike CeFi these risks don’t center on the people running the platform doing something silly with your money. DeFi is all about the math.

  • Market dips can cause liquidations. Just like CeFi loans, DeFi loans set a max LTV. If you use ETH as collateral and the price falls, your LTV rises. What happens, then? Your collateral can become eligible for liquidation, meaning you may lose some of the ETH you posted as collateral. Some platforms also impose a liquidation penalty (fee) that can cost even more ETH. It’s safer to leave a wide margin for price moves when choosing a loan amount.
  • Computer programs have bugs. Well-known platforms like Aave and Compound have armies of techie types swarming the open-source code like ants on a dropped ice cream cone. But an undiscovered bug or a bug newly introduced with a software update could wreak havoc on borrowers and loan providers alike. The now-defunct bZx lending protocol suffered an $8 million loss due to a coding bug. Reportedly, the funds were returned, but that’s not how these stories usually end.
  • Hackers love smart contracts. Smart contracts run the show in DeFi-land. These computer programs work like a series of switches that go on or off when certain conditions are met. DeFi exploits can and do happen. If someone finds a way to push a switch in the wrong direction, the possibilities are endless, and probably not in a good way. Aave recently disabled transactions on the Harmony network following a $100 million exploit that affected the value of assets on the network.

Are There Any Other Fees For Crypto Loans?

Fees, fees, buzzing all around, taking all the fun out of your summer picnic. Network fees and origination fees are among the peskier fees you’ll find for crypto loans.

  • Network fees are a part of life in the crypto world. If you want to move funds from point A to Point B or sign a smart contract, you’ll pay a network fee. And on Ethereum, things can get spendy. Alternative networks like Polygon make network fees a smaller nuisance.
  • Origination fees are unique to loans. An origination fee can be a flat amount or a percentage of the loan. Not all loan providers charge origination fees, but it can be costly if they do. For example, some platforms charge a 2% origination fee on crypto loans. Ouch. Be sure to plug the fees into your calculations before you click the borrow button.

Some platforms may also charge deposit or withdrawal fees or a prepayment fee, but these are less common.

To Sum It Up

When you’re short on cash but long on crypto, a crypto loan lets you access the value of your cryptocurrency without selling your stack. There’s usually no credit check, and you can use the loan proceeds for nearly any purpose. But just like traditional loans, crypto loans bring some risks, with forced liquidations leading the list. With some careful planning, though, you can borrow with lower costs compared to personal loans–and without all the pesky questions.

Frequently Asked Questions

You can use a crypto loan for just about anything, but some common crypto-world uses include using the loan to trade or earn yield in DeFi apps. Outside of the crypto world, maybe you want to buy a house. A crypto loan can help. Buy a car? Start a business? Sure. A crypto loan lets you access the value of your crypto holdings without selling.

Crypto loans come with risks, just like any other loan. Nobody will come to your house and break your kneecaps if you don’t pay, though. Nobody will ding your credit report, either. Instead, you’re putting your collateral at risk. If you don’t pay or if the collateral value falls in value, the loan platform can sell your crypto to pay the loan.

For starters, you’ll need some crypto to use as collateral. In the DeFi world, you’ll be using a web wallet, like MetaMask, to connect to crypto loan platforms. In the CeFi world, you might be working with Bitcoin wallets or whichever wallet you need for the collateral type you want to use. But you’ll also need some time to research so you can choose the right loan platform for your needs. We discuss some popular options in the Where To Borrow Crypto section above.

For most crypto loans, there is no credit check. With traditional loans, providers check credit to gauge the risk of a borrower defaulting on their loan. Crypto loans are fully secured by collateral. So, loan providers usually don’t check credit–and they don’t even care how much you earn. If the borrower defaults on a loan, the provider sells the collateral to pay the loan.

Interest rates can change minute-to-minute on DeFi platforms because DeFI borrowing is based on supply and demand for the crypto you want to borrow. DeFi loan and borrowing platforms call this the utilization ratio. Loan providers deposit crypto into a lending pool. Borrowers then borrow from the pool. As the amount of crypto available and the amount of crypto borrowed changes, interest rates also change.

Yes. If you or your business has crypto you can use as collateral, you can get a crypto loan for your business. Discuss the situation with your accountant first to be sure you’re compliant with IRS rules and not commingling funds. They’re sticklers.

Yes. Each platform sets its own minimum or maximum loan sizes. On centralized platforms, minimums are often about $1,000, and maximums can go well into the millions. DeFi crypto loans are more flexible compared to centralized crypto loan providers. With DeFi, you can borrow just a few bucks to buy a taco off the lunch truck.

Most crypto loan platforms don’t require you to personally guarantee your loan. Your cryptocurrency is collateral to secure the loan. If you don’t pay your loan or the value of your collateral falls, the provider can sell your crypto to pay the loan.

Yes, it is possible to get a crypto loan without posting collateral. This is a more difficult path and is usually only available for institutional borrowers with good credit. One provider to consider for crypto loans without collateral is Atlendis.

In most countries, crypto loan proceeds are treated like normal loan proceeds and aren’t taxed. Buuuut—if the provider or platform liquidates your collateral, you might have to pay capital gains tax (assuming you had a gain at the time of the sale).

Borrowers should speak with a qualified CPA to discuss the tax treatment of interest payments and any other tax events that might result from the loan itself.

Eric Huffman
Eric Huffman
Staff Writer
Eric Huffman is a staff writer for In addition to crypto and blockchain topics, Eric also writes extensively on insurance and personal finance matters that affect everyday households.
Shannon Ullman
Shannon Ullman
Managing Editor
Managing editor working to make crypto easier to understand. Pairing editorial integrity with crypto curiosity for content that makes readers feel like they finally “get it.”

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