Best Crypto Lending Platforms 2023 (Ultimate Guide)
This is the ultimate guide to the best crypto lending platforms of 2023.
You can lend your cryptocurrency to others and earn up to 15 – 20% APR yield — paid daily or weekly.
If you prefer to get FIAT currency (such as USD, GBP, CAD), these crypto lending platforms will make it easier for you, too.
You’ll soon find out why both crypto beginners and experienced investors are talking about Nexo, VAULD, Celcius Network, and Binance as the leading platforms for lending crypto for high yields.
It’s time to discover some trusted cryptocurrency exchange and lending platforms that will suit your needs.
This guide will show you:
- What the best crypto lending platforms are
- How crypto lending work
- What you should do to maximize your interest rate and make more money, plus how to avoid wasting money on a ‘fancy’ crypto platform
- And lots more…
So if you’re just getting started with cryptocurrency lending or you want to switch to a more reliable cryptocurrency lending platform, this guide is for you.
Let’s go ‘all in’ and generate high yields for our crypto assets.
What Are The Best Crypto Lending Platforms?
Here are my top picks for the best crypto lending platforms of 2023:
- Celsius Network
- Compound Finance
- Oasis Borrow
- Helio Lending
Alright, let’s dive right in. Here’s a breakdown of the 15 biggest crypto lending platforms of 2023:
The best crypto lending platform to earn high interest rate (up to 20%)
Nexo is a crypto lending platform that allows cryptocurrency holders to lend and earn up to a 20% interest rate annually. Users can also collateralize their cryptos and borrow money instantly.
To borrow, users deposit their cryptocurrency into their Nexo account and instantly receive fiat currency. The platform supports various stablecoins, such as Litecoin, Bitcoin Cash, Ethereum, and XRP.
The platform provides various benefits for users, including a savings account that pays 8% ROI.
The currency can be stored or transferred between Nexo accounts, and users can also access their funds from their accounts.
- Earn up to 20% of interests on high-yield Savings account
- Borrow cryptos and get approved quickly
- 30+ cryptocurrencies to lend/borrow
- Earn daily interest on Cryptos, EURx, USDx, and GBPx.
- Deposit or withdraw funds anytime
- Withdraw funds to bank account with ease
- Easily borrow cash with low-interest rates (starting at 0%).
- No credit checks before your cash loan is approved
- Get a free virtual card that can be accepted by 40+ million merchants globally
- Trusted insurance on your custodial assets. This means your fund is safe
- It requires a learning curve.
- The speed of the mobile app can be improved.
Nexo Fee Structure
|Up to 1% NEXO Tokens in Portfolio1 Free Crypto Withdrawal each month||1-5% NEXO Tokens in Portfolio2 Free Crypto Withdrawals per month||5% – 10% NEXO Tokens in Portfolio3 Free Crypto Withdrawals per month||At least 10% NEXO Tokens in Portfolio5 Free Crypto Withdrawals each month|
A better cryptocurrency lending platform to lend/borrow crypto assets easily
VAULD is a leading crypto lending platform, which allows users to deposit their cryptocurrencies and earn interest every day.
You can earn up to a 6.70% APY rate for BTC and ETH, 12.68% for USDC & USDT, and 1% for DOGE.
The interest is calculated daily and paid out weekly, with no minimum or maximum deposit amount.
Withdrawals can be made at any time. Withdrawals are free and instant except for Bitcoin which can take up to six hours to be reflected.
- Compounded interests are paid out weekly
- Borrow cryptos and get approved instantly
- Earn, Borrow, and Trade Cryptocurrencies
- Access your Savings account via multiple trading platforms (iOS, Android, Desktop)
- Earn higher interests rates on fixed deposits
- Zero hidden fees
- An easy-to-use mobile app
- No hassles. Easily pay back your loans via installments
- Join a crypto community to discuss upcoming tokens
- It’s not as reputable as Binance Savings, since it’s a new relatively new crypto lending platform
- You may experience network outage while making a deposit/withdrawal
VAULD Deposit and Withdrawal Fees
VAULD Interest Rates
|Token||Savings Rate (APY)||Fixed Deposit Rate (APY)|
3. Celsius Network
The best crypto lending platform with high yield stablecoins (up to 17.7%)
Celsius is a blockchain-based centralized lending platform.
It provides users with the opportunity to earn interest by lending out their crypto in exchange for dollars or other fiat currencies.
Unlike other lending platforms, there is no credit check or transaction fee and there are no termination fees.
You can borrow up to 25% of the value of your collateral and repay it over the term of the loan.
Interest rates are competitive with other lending platforms, and you can get an interest rate of up to 10% per year.
- Use Celsius on Web, iOS, and Android channels
- Transfer your cryptos, earn decent interest rates
- Get paid weekly (every monday)
- Borrow funds at 1% APR
- No credit check
- No original fees
- Earn up to 17.7% APR on stable coins
- Earn up to 6.35% APR on cryptos
- 40+ lendable coins to pick from (incl. BTC, ETH, USDT)
- It’s available in 125 countries
- Get 25% more rewards when you earn in CEL token
- It offers limited trading capabilities
- More lendable coins would be appreciated
Celsius Network Fees: A Breakdown
|Loan rate||Starting at 1% APR|
The perfect crypto platform to earn interest on your BTC, ETH, DAI
Hodlnaut is a centralized crypto lending platform, with a secure service that allows users to lend crypto assets. It works by earning interest on deposits and getting paid every week.
Interest rates are determined based on how much interest was earned in the past month.
The platform accepts a wide variety of cryptocurrencies, including ETH, DAI, WBTC, and USDT.
Once you’ve signed up, you can trade between the supported crypto assets, including Bitcoin, Ethereum, and Litecoin.
- Weekly payouts to your wallet
- No lock-in periods or minimum deposits
- Deposit and withdraw funds anytime
- Nexus Mutual’s Custody Cover
- Earn compound interest on your assets
- Easy Token Swap
- A clean and user-friendly lending dashboard
- Easily accumulate interests and get paid every week
- Earn up to 12.73% APY with a crypto interest account
- No minimum deposit, so start with what you have
- Only 6 crypto assets are supported
- The iOS app is a bit laggy
|Interest Rate||Up to 12.75% APR|
|Minimum deposit||Any amount (start with $1)|
Best regulated crypto lending platform for US citizens / residents
BlockFi is a New York-based startup that provides fiat loans to cryptocurrency holders.
With 13 cryptocurrencies to choose from, BlockFi is one of the most diverse lending platforms in the industry.
Its unique account structure lets you tap into the power of decentralized finances and cryptocurrency while maintaining access to your crypto.
There are no hidden fees or minimum balances, and you can withdraw funds instantly from your account without any hassle.
You can also transfer funds from your BlockFi account to another one within a matter of seconds.
- Borrow funds against your crypto assets
- Low-cost crypto trading
- Top-Tier compliance program to safeguard your funds
- Personalized credit cards for traders
- Easy to use Digital wallets
- No commission fee
- Available worldwide, except watch-listed countries
- Benefit from Instant Trades
- It’s U.S-based and regulated
- No custodial or joint accounts
- APY and loan rate volatility
BlockFi Fees at a Glance
|Fees||Up to 1% spread per trade|
|Interest Rates on Deposits||Up to 9.25%|
What Are The Benefits Of Crypto Lending Platforms
Here are some of the top benefits of crypto lending platforms.
1. Attractive interest rates
Crypto lending platforms offer attractive interest rates compared to traditional lending institutions. That’s why the industry is growing.
According to Credmark, the crypto lending market reached $8 billion in total lifetime loan originations as of Q4 2019.
Most of these platforms charge minimal fees and don’t charge any application fees.
They will also give you daily interest on your crypto assets, and their apps are designed to be mobile-friendly. So you can quickly log into your account via mobile to access your funds.
The best crypto lending platforms will clearly explain the costs involved and how much value the borrower creates.
2. Low transaction fees
A good way to get started in crypto lending is by signing up for an account at one of the many different platforms with low transaction fees such as BlockFi.
While many of these platforms offer competitive rates, you’ll want to avoid those that have high transaction fees or have been known to commit fraud.
This way, you can be sure your loan will be secured and that you’ll end up getting the best rate possible.
3. Benefit from using digital bank accounts
Crypto lending platforms that uses digital bank accounts have become popular in recent years. More than 200 million people preferred a digital bank account in 2020.
Its technology has made it possible for institutional investors to exploit flaws in the cryptocurrency markets and make fast money without holding any risky assets.
In the case of a blockchain-based crypto lending platform, institutions can use their digital bank accounts to place bets on the differences between futures and prices of the crypto.
As a result, successful speculation fuels consumer yields.
4. Global accessibility
The best crypto lending platforms are accessible around the globe. You can choose from a wide range of cryptocurrencies, and the interest rates are usually reasonable.
So, no matter where you live, there’s a crypto exchange and lending solution for you.
Keep in mind, though, that some are limited to particular regions, while others may only be available in the United States or Europe.
5. Access to a diversified loan portfolio
DeFi Lending, for example, allows users to earn interest on their loans with cryptocurrency and can also offer margin trading options.
This type of platform allows long-term investors to borrow assets and earn higher interest rates than centralized exchanges.
CoinRabbit, for example, allows users to borrow as many stablecoins as they wish and charges a 10% interest rate.
Unlike DEX, CoinRabbit keeps track of the collateral and will alert you when it is about to liquidate.
How Does Crypto Lending Work?
Crypto lending works like any other type of lending, except it uses a blockchain.
A platform handles the lending and borrowing transactions, and the borrower can use cryptocurrency or FIAT assets as collateral.
The illustration below shows exactly how crypto lending works:
The lender might want to use an escrow account to be able to deposit funds into the platform.
To avoid losing your money, you should perform a thorough background check on the company or founder.
While there are some pros and cons to crypto lending, it’s worth considering these factors before investing in any new ventures.
These loans are backed by specialized providers and are similar to traditional bank loans.
They are not secured by assets and are not based on credit scores or income, so there is no risk of you defaulting on the loan.
Difference Between Crypto Lending and Traditional Lending
A major difference between traditional lending and crypto lending is the speed of processing.
The traditional banking system requires paper-based documentation, and the process for loan approval can take weeks. Crypto loans can be completed in minutes or hours.
And unlike conventional banking, it’s 100% digital. There are no multiple check-points.
While traditional bank loans are a more secure way to borrow money, they come with rigid conditions.
The loan amount and interest rate are fixed, and repayment terms are not always clear.
Cryptocurrency loans are not unsecured financial products, meaning that they may fluctuate in value.
In addition, crypto loans carry risks, as the value of cryptocurrencies may fall.
This can affect your ability to pay back your loan. You should consider this before making the decision.
The Difference Between P2P and Crypto Lending
The major difference between traditional P2P and crypto lending is the way the funds are distributed.
In Peer-to-Peer lending model, the user scans for matches and agrees to fund the transaction.
In a crypto-based lending model, the loan is issued directly to the borrower.
The transaction is then completely transparent, automated, and censorship-resistant, allowing the borrower to avoid any middlemen.
Additionally, P2P lending sites have buyback features to reduce the risk of credit defaults.
What To Consider Before Taking Out A Crypto Loan
If you’re planning to take out a cryptocurrency loan, there are some important things you should know before committing to the deal.
There are a number of risks to consider before taking out a crypto loan.
Unlike traditional bank loans, crypto companies aren’t required to maintain liquidity, so they’re much more likely to default on a loan.
The risk of margin calls is especially high, and you’ll want to make sure your crypto lender offers insurance before depositing your money.
This can help protect your investment and ensure you’re protected in the case of a cryptocurrency crash.
You’ll also have a shorter repayment term for a crypto loan, which makes it less risky than a traditional bank loan.
Besides that, your account may be liquidated by the lending platform if you fail to repay your debt.
You might be left with a large tax bill. Fortunately, you can avoid this hassle by finding a crypto-lending platform with insurance.
How To Choose The Best Crypto Lending Platform
How do you choose the best crypto lending platform that will serve your specific needs? It’s tough, but I have simplified it for you.
Here are some factors to keep in mind when searching for the perfect crytocurrency lending websites:
1. Interest Rate
A key factor when choosing a crypto lending platform is the interest rate offered by the platform. Your goal is to earn the best interest rate daily, weekly, or monthly.
What is the cost associated with lending different crypto assets? Is the cost the same for BTC, ETH, and stablecoins? It’s important to keep this consideration in mind when making your decisons.
3. Collateral Amount
The collateral you need to put down when borrowing FIAT currency (USD, EUR, GBP) is important? Also, the amount is important. Look for a crypto lending platform with a straightforward and fair collateral amount.
4. Minimum Deposit Limit
Deposit limits are equally important. Does the cryptocurrency lending site have a specific requirement for funds you should deposit?
A $100 min. deposit amount means you can start earning interest today, but a $10,000 min. Deposit amount only leaves room for successful crypto traders and investors.
5. Platform Risks
How secure is your crypto lending platform? Browse through their website and you’ll see the level of security you’re offered for your crypto funds. It doesn’t matter how high their interest rate is, it’s risky if the platform
6. Loan Duration
Don’t forget to consider the lending duration of the platform. Depending on your specific requirements, check if it’s a fixed or flexible duration.
Crypto Lending Platforms – FAQs
Crypto lending and investing is relatively new compared to Stocks, Bonds, Futures, and Real Estate.
As a result, a lot of people are asking questions that need some answers.
Let’s answer some of the frequently asked questions about crypto lending platforms.
Crypto lending is a type of lending whereby an investor (it could be anyone) opens an account, deposits cryptocurrency assets (such as BTC and ETH) and earns interest when other people borrow the money.
Secured loads require a collateral. In the world of cryptocurrency, your Bitcoin or Ethereum can be used as a collateral since it holds monetary value.
Celsius Network pays out a high interest rate on your crypto deposits — up to 6.35% APR on cryptos (BTC, ETH) and up to 17.7% on Stablecoins (USDT, BUSD, Dai)
Crypto lending platforms are considered safe because of the security measures put in place to prevent cybersecurity attacks and hacks. The best crypto lending platforms are also FDIC-insured, which means your funds are safe.
Crypto lending has its rewards and risk, just like traditional investments in stocks and real estate. You need to understand how each crypto lending platform works, so that you can protect yourself.
Blockchain technology facilitates Peer-to-Peer loans and exchanges. The future looks promising, but blockchain isn’t 100% yet.
Crypto lending can yield a 3% to 8% APY on average. Some crypto lending platforms like NEXO and VAULD pays 10 – 20% APR on your crypto deposits.
The average interest rate on crypto loans range from 0% to 20%.
What is the biggest crypto lending platform?
NEXO has 3.5 million+ users worldwide, 200+ available jurisdiction, and a $12 billion+ assets under management. This makes it the biggest crypto lending platform yet.
NEXO is a safe crypto lending platform. Besides, it has an insurance cover of up to $375 million. So your crypto assets are in safe hands.
The top 5 crypto lending platforms are Celsius Network, NEXO, VAULD, Bitcoin, and BlockFi.
CoinLoan, Oasis Borrow, Ledn, CoinRabbit, and YouHodler are some newer crypto lending platforms to check out.
DeFi platforms make it easy for users to lend or borrow funds from others, speculate on price movements on assets using derivatives, trade cryptocurrencies, insure against risks, and earn good yield in the form of an interest in savings-like accounts.
Blockchain is useful for curbing data breaking and other comparable fraudulent operations that are prevalent in the Fintech industry.
Fintech businesses are using Blockchain to conveniently share or transfer safe and unaltered information through a decentralized network.
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar. Tether (USDT) is a stablecoin, which is primarily used to keep the valuations of cryptocurrency stable.
Binance, CoinBase, Crypto.com, Binance.US, Kraken, KuCoin, and BlockFi are the best platforms for buy cryptocurrency.
Best Crypto Lending Platforms – Summary
Did you find this ultimate comparison review of the best crypto lending platforms valuable?
Crypto lending sites have provided a new way to lend out your money for profit or borrow money and pay it back with a flexible repayment plan.
That’s why it’s important to choose the right lending platform with great interest rates and easy-to-use features.
Here are my final recommendations:
- Nexo – Best for high interest rates (up to 20%)
- VAULD – Best for beginners
- Celsius Network – Best for high-yield stablecoins
- Binance Savings –
- Hodlnaut – A perfect option to earn decent interest for your BTC, ETH
- BlockFi – Best for business owners
Thank you for going through this in-depth guide. Now it’s your turn.
What crypto lending platform are you going to use?
Did I mention your favorite crypto exchange and lending platform here?
Either way, I’d love to hear what you have to say. So go ahead and comment right below.
Further reading on Abdalslam.com: To dive deeper into the world of cryptocurrency, you can check out my in-depth guides to the best cryptocurrency exchanges, the best best crypto interest accounts, as well as the best crypto tax software.
If you are interested in NFTs, be sure to check out my complete guides to the best NFT marketplaces and best NFT wallets.
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