Crypto has been an exciting way to invest, and now, it can be a way to borrow, too. When you need funds fast, your cryptocurrency could be the key to getting the money you need. If you are considering taking out a loan, this is how to make your crypto work for you.
Top crypto loans
When choosing a crypto lender, it is important to choose a reputable, reliable provider. These are among the best crypto lenders to consider for your loan.
Coinbase partners with Morpho, an open-source lending protocol on Base, to provide crypto loans up to $100,000. It takes less than a minute to trade your bitcoin (BTC) for an instant loan in USDC — US digital coin, a stablecoin.
You do not have to sell your bitcoin but instead can borrow against its value with variable interest rates. For now, Coinbase only offers bitcoin loans, but it plans to expand beyond that in the future. Its loans have no payment deadlines or fixed monthly payment dates. Instead, you choose when you want to repay your loan. There are also no fees unless your loan-to-value (LTV) ratio exceeds 86 percent, in which case there is an automatic liquidation and accompanying penalty fee.
However, Coinbase bitcoin loans are not available everywhere yet, including in New York. To review your eligibility, check your account. If it is unavailable, be sure to check back, as Coinbase says it is rolling the service out progressively.
Fee
No fees
Supported coins for borrowing or loaning
271
Interest Rate
Variable, set by open lending markets on Morpho
Maximum Loan Amount
Up to $100,000
Coinbase partners with Morpho, an open-source lending protocol on Base, to provide crypto loans up to $100,000. It takes less than a minute to trade your bitcoin (BTC) for an instant loan in USDC — US digital coin, a stablecoin.
You do not have to sell your bitcoin but instead can borrow against its value with variable interest rates. For now, Coinbase only offers bitcoin loans, but it plans to expand beyond that in the future. Its loans have no payment deadlines or fixed monthly payment dates. Instead, you choose when you want to repay your loan. There are also no fees unless your loan-to-value (LTV) ratio exceeds 86 percent, in which case there is an automatic liquidation and accompanying penalty fee.
However, Coinbase bitcoin loans are not available everywhere yet, including in New York. To review your eligibility, check your account. If it is unavailable, be sure to check back, as Coinbase says it is rolling the service out progressively.
CoinRabbit offers crypto-backed loans starting at $100 with a $1 million maximum deposit. Over 296 currencies are accepted, and several different stablecoins are available. Funds are received in minutes, and you can receive loans in crypto like bitcoin, ethereum (ETH), USDC and tether (USDT). These loans carry an ranging from 12% to 17%, depending on how much you borrow and your chosen currency.
A credit check is required, but once approved, you typically receive funds within 15 minutes. It takes an average of one hour for CoinRabbit to return your crypto after you have paid off the loan.
CoinRabbit does not share exact fees, although it does list the ones it charges, such as a withdrawal fee and a fee for repayment from an external wallet.
Fee
No available fee schedule
Supported coins for borrowing or loaning
115
Interest Rate
12% to 17%
Maximum Loan Amount
Up to $1 million in accepted deposits
CoinRabbit offers crypto-backed loans starting at $100 with a $1 million maximum deposit. Over 296 currencies are accepted, and several different stablecoins are available. Funds are received in minutes, and you can receive loans in crypto like bitcoin, ethereum (ETH), USDC and tether (USDT). These loans carry an ranging from 12% to 17%, depending on how much you borrow and your chosen currency.
A credit check is required, but once approved, you typically receive funds within 15 minutes. It takes an average of one hour for CoinRabbit to return your crypto after you have paid off the loan.
CoinRabbit does not share exact fees, although it does list the ones it charges, such as a withdrawal fee and a fee for repayment from an external wallet.
Binance offers its Flexible Loan, a variable rate, crypto-backed loan starting at just a dollar. Loans go up to $15 million, depending on the currency. However, there are a number of different currencies both available and accepted, including favorites like USDT, BTC and ETH. Interest rates are variable and updated regularly, but as of January 2025, interest rates were 1.33% for BTC, 2.48% for ETH and 8.70% for USDT.
There is no set payment schedule, so you can choose when you make payments. Even better, your collateral earns you rewards through your automatic subscription to its Simple Earn Flexible Products.
There are no transaction fees. However, Binance does not disclose the rest of its fee beyond the liquidation fee it assesses.
Fee
No available fee schedule
Supported coins for borrowing or loaning
369
Interest Rate
Variable. 1.33% - 8.70% as of January 2025
Maximum Loan Amount
Up to $15 million
Binance offers its Flexible Loan, a variable rate, crypto-backed loan starting at just a dollar. Loans go up to $15 million, depending on the currency. However, there are a number of different currencies both available and accepted, including favorites like USDT, BTC and ETH. Interest rates are variable and updated regularly, but as of January 2025, interest rates were 1.33% for BTC, 2.48% for ETH and 8.70% for USDT.
There is no set payment schedule, so you can choose when you make payments. Even better, your collateral earns you rewards through your automatic subscription to its Simple Earn Flexible Products.
There are no transaction fees. However, Binance does not disclose the rest of its fee beyond the liquidation fee it assesses.
With Arch, terms are limited to just 12 months, making it ideal as a short-term loan. It only works with three currencies — bitcoin, ethereum and solana — and loan amounts vary based on the currency you use and how much you put up. Still, Arch advertises a 14% interest rate with a 1.5% origination fee.
No credit check is required, so it is great for new or bad credit, and you can receive instant qualification for loans of $1,000 or more. Loans are available up to $1 million — or more with company approval. Loans are dispersed in either USD (fiat) or USDC (stablecoin).
Arch is great for payment flexibility. There is no set payment schedule, and you can choose between amortized or interest-only payment schedules.
Fee
1.5% origination fee
Supported coins for borrowing or loaning
3
Interest Rate
14%
Maximum Loan Amount
Up to $1 million
With Arch, terms are limited to just 12 months, making it ideal as a short-term loan. It only works with three currencies — bitcoin, ethereum and solana — and loan amounts vary based on the currency you use and how much you put up. Still, Arch advertises a 14% interest rate with a 1.5% origination fee.
No credit check is required, so it is great for new or bad credit, and you can receive instant qualification for loans of $1,000 or more. Loans are available up to $1 million — or more with company approval. Loans are dispersed in either USD (fiat) or USDC (stablecoin).
Arch is great for payment flexibility. There is no set payment schedule, and you can choose between amortized or interest-only payment schedules.
Pros
Instant qualification
Loans for $1+ million
No credit check required
Cons
Short terms
Only three currencies
Fee
1.5% origination fee
Supported coins for borrowing or loaning
3
Interest Rate
14%
Maximum Loan Amount
Up to $1 million
Fee
1.5% origination fee
Supported coins for borrowing or loaning
3
Interest Rate
14%
Maximum Loan Amount
Up to $1 million
How do crypto loans work?
A cryptocurrency loan is a form of secured loan that uses your crypto as collateral for liquidity. Much like a personal loan, a crypto-backed loan is paid back in installments with interest. You receive your crypto back when you fulfill your payment obligations for the loan.
Not all crypto loans are paid in cash. Some crypto lenders may use stablecoin, which has cash value linked to the US dollar. Most borrowers do not put up all their crypto as collateral — instead, they use just a portion. Its value is calculated using its loan-to-value ratio, comparing the loan amount to the total value of your cryptocurrency. The more crypto you pledge, the lower your LTV will be.(1)
These loans can have terms lasting from days to years. Overall, crypto loans vary by lender, especially with which cryptocurrencies are accepted. That’s why it’s important to do your homework and compare lenders to find the best fit for your portfolio.
Types of crypto loans
There are two main types of crypto lending:
Centralized finance (CeFi) loans. These are known as custodial loans that give the lender control over your cryptocurrency during the entirety of the loan term.
Decentralized finance (DeFi) loans. These are based on automated smart contracts that allow you to retain control of your crypto. However, you can be subject to automatic penalties should you fail to make your payments as agreed.
Both are popular with investors but carry different risks. Be sure to consider both carefully before choosing the right loan type for you.
How to compare crypto loans
When comparing crypto-backed loans, there are a few critical factors to consider:
Accepted crypto. Review the lender’s terms to see which cryptocurrencies are accepted for your loan. Bitcoin (BTC) and ethereum (ETH) are two popular cryptos frequently taken by lenders.
APR. Compare interest rates to find the lowest rate for your loan. The lower your rate, the less interest you pay.
Loan terms. Be sure to find a crypto loan that is reasonable for repayment. A longer loan term means smaller payments, but you will also pay more in interest.
Customer service. Check the hours of customer service and what forms of contact are available.
Ratings and reviews. Research each lender to see how it rates. Check reviews from the Better Business Bureau (BBB) and Trustpilot to see past customer experiences.
The benefits of crypto loans
There are several benefits of crypto loans:
Not required to sell. You can put up your crypto as collateral without having to sell it unless you default on the loan.
Great in a pinch. Crypto loans are a way to get access to cash without liquidating other assets. They can be great in emergencies when you need to borrow cash fast.
Lower interest rates. Crypto loans generally have lower interest rates than other types of loans.
The risks of crypto loans
Of course, crypto loans are not perfect, as there are some drawbacks.
Subject to market volatility. Your crypto may be worth a certain amount when you pledge collateral, but market volatility can lower its value, potentially affecting your loan.
No FDIC protection. Should the lender fail, there is no protection from the FDIC as you would get with a traditional lender. Any crypto you put up as collateral for the loan would be lost.(2)
Security concerns. Cybercrime is always a concern when using digital assets and resources, as hackers run rampant. Should your funds be stolen, there is no insurance or coverage to replace them.
Bottom line
Crypto loans allow you to borrow cash using crypto as collateral without needing assets like a home or car. However, before choosing a lender, be sure to consider the best crypto exchanges to help with the process.
Frequently asked questions
What is the best site to borrow crypto?
Coinbase and Binance are among the best lenders for crypto loans, but the best site to borrow crypto ultimately depends on your personal needs and financial goals.
What is the number one crypto exchange in the US?
According to Statista, Binance is the largest crypto exchange in the US. However, other options like CoinRabbit and Arch remain popular choices for crypto loans, as well.(3)
Lena Borrelli is an experienced finance writer with a deep understanding of personal finance, investing and consumer banking. Her work has been featured in top-tier publications such as Forbes, TIME, Bankrate, Moneywise and Annuity.org, where she provides expert insights on financial trends, smart money management and emerging fintech solutions. With a background in personal finance and content strategy, Lena specializes in breaking down complex financial topics into clear, actionable advice for readers. When she is not writing or scanning the news for the latest headlines, she is happiest spending time in the Florida sunshine with her husband and two pups. See full bio
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
