How do crypto loans work?

Crypto loans work by allowing borrowers to use their cryptocurrency as collateral to secure a loan. This means that instead of selling their crypto holdings when they need cash, individuals can borrow against the value of their crypto assets. Typically, a borrower deposits their cryptocurrency into a digital wallet on a lending platform, where it is locked until the loan is repaid. The loan amount is usually a percentage of the crypto's current market value, often ranging from 50% to 70%. This approach enables crypto holders to retain their investments while accessing the liquidity they need, potentially benefiting from any price increases over the loan period. For example, let's say you have $1,000 worth of Ethereum on a crypto exchange that supports loans. You can use your ETH to take out a $500 - $700 loan. This amount can be in Ethereum, but also in other cryptocurrencies, including USDT. You can use the borrowed funds for trading, staking or airdrops. Once you are ready to repay the loan, you get to keep your original Ethereum, and any potential earnings you made by using the loaned funds.

Why would anyone take out a crypto loan?

Crypto loans offer a unique way to unlock quick liquidity from digital assets without having to sell them, providing immediate access to funds for urgent financial needs or new investment opportunities. By leveraging crypto exchanges with loans, the process becomes remarkably simple and user-friendly, allowing borrowers to access funds with just a few clicks. This instant availability is especially beneficial for crypto investors who anticipate potential profits from rising market values and wish to retain their investments to benefit from future appreciation and any associated passive income opportunities like staking rewards. Crypto loans also streamline the borrowing process by eliminating traditional barriers such as credit checks and lengthy approval procedures. This not only speeds up the access to funds but also maintains the privacy of the borrower’s financial history, focusing solely on the value of the crypto assets as collateral. The approach is discreet, efficient, and opens up financial possibilities to individuals who might face challenges securing traditional financing. Furthermore, opting for a crypto loan can be a savvy financial strategy for managing potential tax liabilities. In many jurisdictions, liquidating cryptocurrencies triggers capital gains taxes; however, by taking out a loan against them, borrowers can defer these taxes and possibly enhance their overall tax positioning. Crypto loans also allow investors to stay invested in their digital assets over the long term, offering the flexibility to repay the loan and reclaim their collateral, which is ideal for those bullish on the future of cryptocurrencies. This combination of tax efficiency, asset retention, and easy access to capital makes crypto loans an attractive option for managing and growing digital wealth.

Are there any risks to crypto loans?

Crypto loans, while offering numerous advantages, come with their own set of risks that borrowers must consider. One of the most significant risks is the inherent volatility of cryptocurrencies. The value of digital assets can fluctuate wildly within very short periods, affecting the loan-to-value (LTV) ratio agreed upon at the initiation of the loan. If the value of the collateral decreases significantly, it may trigger a margin call where the borrower must add more collateral to maintain the required LTV ratio. Failure to meet margin calls can lead to the liquidation of the borrower's assets to cover the loan, resulting in substantial financial loss. Another risk factor in crypto loans is the interest rate, which can be considerably higher than that of traditional loans. Because cryptocurrencies are perceived as riskier assets, lenders often charge higher interest rates to offset the increased risk of default or sudden market downturns. These rates can vary widely depending on the platform and market conditions, potentially increasing the cost of borrowing significantly. This can be especially burdensome for borrowers if the crypto market enters a bear phase, where the value of collateral might decrease while repayment costs rise due to high-interest rates. Regulatory uncertainty also adds a layer of risk to taking out crypto loans. The legal framework for cryptocurrency is still under development in many regions, and sudden changes in regulations can have unforeseen effects on the terms and viability of crypto loans. New regulations could impose stricter requirements on lending platforms, change the legal status of crypto assets, or even restrict the use of cryptocurrencies altogether. These risks highlight the need for potential borrowers to conduct thorough research and consider their financial stability and risk tolerance before committing to a crypto loan. While crypto loans can provide fast and flexible financial solutions, they also require a clear understanding of the market dynamics and regulatory environment that could impact the borrower's financial commitments and outcomes.

Can I get a crypto loan without collateral?

On centralized exchanges, no you will not be able to get a crypto loan without providing collateral. Most platforms claiming to offer crypto loans without collateral are scams. Nobody will let you borrow money from them without ensuring they will get their funds back.

Crypto Exchanges with Loans

Read Review

Link bonus:

: 20%

: $10,000

#1 OKX

4.7/5

One of the largest exchanges – Reliable and safe – Top tier Web3 wallet – Inscriptions & NFT marketplace – Good APY for flexible staking – Low fees – Up to $10,000 welcome rewards

: 300+

: 2017

: ₿ 31,333

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

Demo trading

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.08%
Spot Taker Fee: 0.1%
Futures Maker Fee: 0.01%
Futures Taker Fee: 0.05%

Additional 20% fee discount when using our referral signup link.

Additional $10,000 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 1.50% to 2.49%
EUR: No fee
SWIFT: No fee

View all deposit & withdraw fees

Safety

Exchange launched in 2017

Number of users: 18 million

Licenses & registrations: 5

Proof of Reserves

Highly regulated

Considered very safe

Volume & Altcoins

Number of altcoin pairs: 300

Last 24h trade volume (in BTC): 31,333

Read Review

Link bonus:

: 20%

: $6,666

#2 Gate

4.7/5

Variety of wire and card deposits – Fiat withdrawals – Over $6,500 in welcome rewards – Crypto ATM card – 500+ altcoins for staking – Over 2,000 altcoins listed for trading – Excellent Web3 wallet – Safe and reliable – Very low trading fees

: 2,300+

: 2013

: ₿ 35,877

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

Demo trading

Crypto ATM cards

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Stocks, Commodities & Forex

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.1%
Spot Taker Fee: 0.1%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.05%

Additional 20% fee discount when using our referral signup link.

Additional $6,666 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 2.8%
EUR: 3%

View all deposit & withdraw fees

Safety

Exchange launched in 2013

Number of users: 30 million

Licenses & registrations: 11

Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 2300

Last 24h trade volume (in BTC): 35,877

High trading volume

High liquidity

Read Review

Link bonus:

: 10%

: $30,000

#3 Bybit

4.7/5

Cheap fiat deposits and withdrawals – Beginner friendly with quick purchase and convert – Solid amount of quality mid-cap altcoins – $30,000 in signup bonuses – Reliable and trusted since 2018

: 700+

: 2018

: ₿ 36,431

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

Demo trading

Crypto ATM cards

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Stocks, Commodities & Forex

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.1%
Spot Taker Fee: 0.1%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.055%

Additional 10% fee discount when using our referral signup link.

Additional $30,000 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 1.10% EU, 2.70%-3.05% Non-EU
EUR: 0.19% (€1 min.)
SWIFT: 0.51% (min. €15)

View all deposit & withdraw fees

Safety

Exchange launched in 2018

Number of users: 70 million

Licenses & registrations: 7

Proof of Reserves

Highly regulated

Considered very safe

Volume & Altcoins

Number of altcoin pairs: 700

Last 24h trade volume (in BTC): 36,431

High trading volume

High liquidity

Read Review

Link bonus:

: 10%

: $100

#4 Binance

4.8/5

World’s biggest exchange by volume – High liquidity on all trading pairs – Trading fee discounts with native token – Cheap fiat deposits – Reliable and trusted

: 400+

: 2017

: ₿ 202,056

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

Demo trading

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.1%
Spot Taker Fee: 0.1%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.05%

Additional 10% fee discount when using our referral signup link.

Additional $100 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 2%
USD: $1 (US only)
EUR: €0.3 to max. €1
SWIFT: Min. €0.5, max. 1.2%

View all deposit & withdraw fees

Safety

Exchange launched in 2017

Number of users: 271 million

Insurance fund: 1.0 billion USD

Licenses & registrations: 21

Proof of Reserves

Highly regulated

Considered very safe

Volume & Altcoins

Number of altcoin pairs: 400

Last 24h trade volume (in BTC): 202,056

High trading volume

High liquidity

Read Review

Link bonus:

: 10%

: $8,201

#5 KuCoin

4.4/5

Easy fiat deposits and withdrawals – Fee discounts for native token holders – Large selection of low-cap altcoins – Beginner friendly interface – Savings & staking platform for earning interest on idle spot holdings

: 800+

: 2017

: ₿ 14,184

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

Demo trading

Crypto ATM cards

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.1%
Spot Taker Fee: 0.1%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.06%

Additional 10% fee discount when using our referral signup link.

Additional $8,201 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 5%
EUR: €1

View all deposit & withdraw fees

Safety

Exchange launched in 2017

Number of users: 38 million

Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 800

Last 24h trade volume (in BTC): 14,184

High trading volume

Read Review

Link bonus:

: 20%

#6 HTX

4.5/5

One of the oldest exchanges considered reliable and safe – Varied fiat deposits and withdrawals on P2P market – Flexible and fixed staking with 30+ assets and good APY – Easy to use – Very low fees

: 700+

: 2013

: ₿ 33,649

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

Demo trading

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpools

Fees

Trading fees:

Spot Maker Fee: 0.2%
Spot Taker Fee: 0.2%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.06%

Additional 20% fee discount when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 1.40% + $0.75
USD: 0% - 1.5%
EUR: 0.15% + 1 EUR

View all deposit & withdraw fees

Safety

Exchange launched in 2013

Number of users: 47 million

Licenses & registrations: 5

Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 700

Last 24h trade volume (in BTC): 33,649

Read Review

#7 WhiteBIT

3.9/5

Fiat deposit options including bank transfers, cards, Apple Pay – Easy fiat withdrawals in multiple currencies – Quick convert – Full TradingView integration – Gift cards – CS:GO skins marketplace – Lowest futures trading fees

: 325+

: 2018

: ₿ 11,229

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P trading

Mobile App

Demo trading

Crypto ATM cards

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Trading bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.1%
Spot Taker Fee: 0.1%
Futures Maker Fee: 0.01%
Futures Taker Fee: 0.035%

Fiat deposit fees:

Visa/Mastercard: 1.5% to 3.5%
EUR: 0.1% – 0.2%

View all deposit & withdraw fees

Safety

Exchange launched in 2018

Number of users: 8 million

Insurance fund: 30 million USD

Licenses & registrations: 8

No Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 325

Last 24h trade volume (in BTC): 11,229

Read Review

Link bonus:

: 10%

: $31

#8 XT.com

3.7/5

Medium volume but good liquidity – Many fiat deposit gateways including cards, Google Pay, Apple Pay – Lots of good small market cap altcoins – Optional KYC – High staking yields

: 1,050+

: 2018

: ₿ 16,266

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

No KYC

Demo trading

Crypto ATM cards

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Stocks, Commodities & Forex

Trading bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.2%
Spot Taker Fee: 0.2%
Futures Maker Fee: 0.04%
Futures Taker Fee: 0.06%

Additional 10% fee discount when using our referral signup link.

Additional $31 signup bonus when using our referral signup link.

Fiat deposit fees:

View all deposit & withdraw fees

Safety

Exchange launched in 2018

Number of users: 8 million

Licenses & registrations: 2

Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 1050

Last 24h trade volume (in BTC): 16,266

Read Review

Link bonus:

: 6%

#9 Bitfinex

3.4/5

Old and reliable – Aimed for professional traders more than beginner investors – Credit/debit card deposits – Bank transfer deposits and withdrawals – Basic staking

: 150+

: 2012

: ₿ 3,892

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P trading

Mobile App

Demo trading

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Trading bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpools

Fees

Trading fees:

Spot Maker Fee: 0.1%
Spot Taker Fee: 0.2%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.065%

Additional 6% fee discount when using our referral signup link.

Fiat deposit fees:

USD: 0.1% (min. $60)
EUR: €5
GBP: £5

View all deposit & withdraw fees

Safety

Exchange launched in 2012

Proof of Reserves

Highly regulated

Considered very safe

Volume & Altcoins

Number of altcoin pairs: 150

Last 24h trade volume (in BTC): 3,892

Read Review

Link bonus:

: $8,000

#10 MEXC

3.7/5

Easy buys with cards or bank transfers – Up to $8,000 in signup bonuses – Frequent large trading competitions – Very low trading fees – No mandatory KYC – Massive selection of low-cap altcoins

: 2,900+

: 2018

: ₿ 44,714

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

No KYC

Demo trading

Crypto ATM cards

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Stocks, Commodities & Forex

Trading bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.05%
Spot Taker Fee: 0.05%
Futures Maker Fee: 0.01%
Futures Taker Fee: 0.04%

Additional $8,000 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 2%
EUR: €1.25

View all deposit & withdraw fees

Safety

Exchange launched in 2018

Number of users: 30 million

Insurance fund: 470 million USD

Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 2900

Last 24h trade volume (in BTC): 44,714

Read Review

Link bonus:

: $6,200

#11 Bitget

4.2/5

Lots of interest-earning assets available for staking and savings – Up to $6,200 bonus for new users – Quick convert for beginner traders – Large amount of cheap altcoins not listed on other exchanges

: 800+

: 2018

: ₿ 41,566

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

Demo trading

Crypto ATM cards

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Stocks, Commodities & Forex

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.1%
Spot Taker Fee: 0.1%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.06%

Additional $6,200 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 1.8%
EUR: 0% or 0.5%

View all deposit & withdraw fees

Safety

Exchange launched in 2018

Number of users: 45 million

Insurance fund: 560 million USD

Licenses & registrations: 10

Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 800

Last 24h trade volume (in BTC): 41,566

Read Review

Link bonus:

: 5%

: $5,125

#12 BingX

4.0/5

Over $5,000 bonuses for new users – Trade SPX, NASDAQ, and other indices – Trade commodities like gold or silver – Forex trading – Great selection of altcoins – No mandatory KYC

: 950+

: 2018

: ₿ 4,198

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

No KYC

Demo trading

Crypto ATM cards

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Stocks, Commodities & Forex

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpools

Fees

Trading fees:

Spot Maker Fee: 0.1%
Spot Taker Fee: 0.1%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.05%

Additional 5% fee discount when using our referral signup link.

Additional $5,125 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 3.8%
EUR: No fee
SWIFT: No fee

View all deposit & withdraw fees

Safety

Exchange launched in 2018

Number of users: 20 million

Insurance fund: 150 million USD

Licenses & registrations: 2

Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 950

Last 24h trade volume (in BTC): 4,198

Read Review

Link bonus:

: 10%

: $100

#13 CoinEx

3.5/5

Quick swap and recurring buys – Many fiat deposit & withdrawal gateways – Large amount of altcoins – Optional identity checks – Very low trading fees

: 1,200+

: 2017

: ₿ 2,391

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

No KYC

Demo trading

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.2%
Spot Taker Fee: 0.2%
Futures Maker Fee: 0.03%
Futures Taker Fee: 0.05%

Additional 10% fee discount when using our referral signup link.

Additional $100 signup bonus when using our referral signup link.

Fiat deposit fees:

View all deposit & withdraw fees

Safety

Exchange launched in 2017

Number of users: 10 million

Insurance fund: 33 million USD

Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 1200

Last 24h trade volume (in BTC): 2,391

Read Review

Link bonus:

: $1,012

#14 Bitrue

3.3/5

Fiat deposits through cards and bank transfers – Very high yields for many coins on flexible staking – High volume & operating since 2018 – Up to $1,000 in welcome bonuses – Cheap trade fees

: 800+

: 2018

: ₿ 7,034

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P trading

Mobile App

No KYC

Demo trading

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Trading bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpool

Fees

Trading fees:

Spot Maker Fee: 0.098%
Spot Taker Fee: 0.098%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.06%

Additional $1,012 signup bonus when using our referral signup link.

Fiat deposit fees:

View all deposit & withdraw fees

Safety

Exchange launched in 2018

Insurance fund: 25 million USD

Licenses & registrations: 2

No Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 800

Last 24h trade volume (in BTC): 7,034

Read Review

Link bonus:

: $50

#15 Crypto.com

4.0/5

Great for beginners – Easy deposits with cards or bank transfers – Debit Visa with cashback rewards – Highly regulated and reliable – Staking – Gift cards

: 350+

: 2019

: ₿ 27,911

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P trading

Mobile App

Demo trading

Crypto ATM cards

Recurring & scheduled buy

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Stocks, Commodities & Forex

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpools

Fees

Trading fees:

Spot Maker Fee: 0.25%
Spot Taker Fee: 0.50%
Futures Maker Fee: 0.02%
Futures Taker Fee: 0.04%

Additional $50 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 1.49%
USD: No fee
EUR: No fee
GBP: No fee
SWIFT: No fee

View all deposit & withdraw fees

Safety

Exchange launched in 2019

Number of users: 140 million

Insurance fund: 120 million USD

Licenses & registrations: 33

Proof of Reserves

Highly regulated

Considered very safe

Volume & Altcoins

Number of altcoin pairs: 350

Last 24h trade volume (in BTC): 27,911

Read Review

Link bonus:

: $8,800

#16 Phemex

3.3/5

Up to $8,800 welcome rewards for new users – Cheap fiat deposits and withdrawals – Excellent UI – Demo trading and quick convert suitable for beginner traders – Optional KYC

: 500+

: 2019

: ₿ 1,821

User Friendly

Bank transfer deposits

VISA/Mastercard deposits

Fiat withdraw

P2P market

Mobile App

No KYC

Demo trading

Decentralized wallet

Features

Spot trading

Futures trading

Margin trading

Options trading

Trading Bots

Copytrading

Staking & savings

Crypto loans

Airdrops & Launchpools

Fees

Trading fees:

Spot Maker Fee: 0.1%
Spot Taker Fee: 0.1%
Futures Maker Fee: 0.01%
Futures Taker Fee: 0.06%

Additional $8,800 signup bonus when using our referral signup link.

Fiat deposit fees:

Visa/Mastercard: 0.8% - 3.5%
USD: 0.08% to 2%
EUR: 0.08% to 2%
GBP: 0.08% to 2%
SWIFT: 0.08% to 2%

View all deposit & withdraw fees

Safety

Exchange launched in 2019

Number of users: 5 million

Licenses & registrations: 4

Proof of Reserves

Volume & Altcoins

Number of altcoin pairs: 500

Last 24h trade volume (in BTC): 1,821

FAQs

How do crypto loans work?

Crypto loans work by allowing borrowers to use their cryptocurrency as collateral to secure a loan. This means that instead of selling their crypto holdings when they need cash, individuals can borrow against the value of their crypto assets. Typically, a borrower deposits their cryptocurrency into a digital wallet on a lending platform, where it is locked until the loan is repaid.

The loan amount is usually a percentage of the crypto's current market value, often ranging from 50% to 70%. This approach enables crypto holders to retain their investments while accessing the liquidity they need, potentially benefiting from any price increases over the loan period.

For example, let's say you have $1,000 worth of Ethereum on a crypto exchange that supports loans. You can use your ETH to take out a $500 - $700 loan. This amount can be in Ethereum, but also in other cryptocurrencies, including USDT. You can use the borrowed funds for trading, staking or airdrops. Once you are ready to repay the loan, you get to keep your original Ethereum, and any potential earnings you made by using the loaned funds.
Why would anyone take out a crypto loan?

Crypto loans offer a unique way to unlock quick liquidity from digital assets without having to sell them, providing immediate access to funds for urgent financial needs or new investment opportunities. By leveraging crypto exchanges with loans, the process becomes remarkably simple and user-friendly, allowing borrowers to access funds with just a few clicks. This instant availability is especially beneficial for crypto investors who anticipate potential profits from rising market values and wish to retain their investments to benefit from future appreciation and any associated passive income opportunities like staking rewards.

Crypto loans also streamline the borrowing process by eliminating traditional barriers such as credit checks and lengthy approval procedures. This not only speeds up the access to funds but also maintains the privacy of the borrower’s financial history, focusing solely on the value of the crypto assets as collateral. The approach is discreet, efficient, and opens up financial possibilities to individuals who might face challenges securing traditional financing.

Furthermore, opting for a crypto loan can be a savvy financial strategy for managing potential tax liabilities. In many jurisdictions, liquidating cryptocurrencies triggers capital gains taxes; however, by taking out a loan against them, borrowers can defer these taxes and possibly enhance their overall tax positioning. Crypto loans also allow investors to stay invested in their digital assets over the long term, offering the flexibility to repay the loan and reclaim their collateral, which is ideal for those bullish on the future of cryptocurrencies. This combination of tax efficiency, asset retention, and easy access to capital makes crypto loans an attractive option for managing and growing digital wealth.
Are there any risks to crypto loans?

Crypto loans, while offering numerous advantages, come with their own set of risks that borrowers must consider. One of the most significant risks is the inherent volatility of cryptocurrencies. The value of digital assets can fluctuate wildly within very short periods, affecting the loan-to-value (LTV) ratio agreed upon at the initiation of the loan. If the value of the collateral decreases significantly, it may trigger a margin call where the borrower must add more collateral to maintain the required LTV ratio. Failure to meet margin calls can lead to the liquidation of the borrower's assets to cover the loan, resulting in substantial financial loss.

Another risk factor in crypto loans is the interest rate, which can be considerably higher than that of traditional loans. Because cryptocurrencies are perceived as riskier assets, lenders often charge higher interest rates to offset the increased risk of default or sudden market downturns. These rates can vary widely depending on the platform and market conditions, potentially increasing the cost of borrowing significantly. This can be especially burdensome for borrowers if the crypto market enters a bear phase, where the value of collateral might decrease while repayment costs rise due to high-interest rates.

Regulatory uncertainty also adds a layer of risk to taking out crypto loans. The legal framework for cryptocurrency is still under development in many regions, and sudden changes in regulations can have unforeseen effects on the terms and viability of crypto loans. New regulations could impose stricter requirements on lending platforms, change the legal status of crypto assets, or even restrict the use of cryptocurrencies altogether.

These risks highlight the need for potential borrowers to conduct thorough research and consider their financial stability and risk tolerance before committing to a crypto loan. While crypto loans can provide fast and flexible financial solutions, they also require a clear understanding of the market dynamics and regulatory environment that could impact the borrower's financial commitments and outcomes.
Can I get a crypto loan without collateral?

On centralized exchanges, no you will not be able to get a crypto loan without providing collateral. Most platforms claiming to offer crypto loans without collateral are scams. Nobody will let you borrow money from them without ensuring they will get their funds back.

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