5 Best Crypto & Bitcoin Lending Sites to Earn Interest [2020]

The best bitcoin lending sites can reduce your stress a lot in 2020. 

It’s true. Instead of stressing about trading, you can earn interest on Bitcoin (and other cryptocurrencies) through passive income. 

Studies show that when you have passive income, your stress and anxiety are reduced, you spend more time with friends and family, and you enjoy greater freedom to pursue your hobbies and interests. 

Going forward, you will find:

  • A crypto lending comparison of the 5 best sites.
  • The 9 factors to consider when choosing your BTC lending platform.
  • What is BTC lending -- Explained.
  • 3 reasons why and how to make passive income with bitcoin lending platforms

Let’s dive in!

This resource is when you want to lend your crypto for interest. If you would like to borrow crypto instead, check out our ultimate guide on Crypto Loans.
  • The 5 Best Bitcoin Lending Sites

    Each of us at CryptoManiaks has been in the crypto sphere for a long time. As we’ve made mistakes, we’ve also learned. 

    Here is the sum of our knowledge: a list of the best bitcoin lending sites we use and trust, and which we consider as the best places to earn interest on your crypto. 

    And the winners are Blockfi, YouHodler, Coinloan, BTCPOP and Xcoins.

      Cryptos Avail. Competitive Advantage  
    BlockFi logo BTC, ETH, LTC, 4+ stablecoins Reputation & Security Earn on BlockFi
    YouHodler logo BTC, ETH, 12+ stablecoins/altcoins Highest rates for stablecoins Earn on YouHodler
    CoinLoan logo BTC, ETH, 5+ stablecoins/altcoins Highest rates for BTC, ETH, BCH, LTC, XMR Earn on Coinloan
    BTCPop logo BTC, 180+ altcoins Unlimited choice of crypto Earn on BTCPOP
    XCoins logo BTC only Interest paid to Paypal in Fiat of your choice Earn on Xcoins

    Now, let’s do a crypto lending comparison for my favorite platforms. You’ll also see how to earn interest on bitcoin and stay safe doing it.

    #1 BLOCKFI

    BlockFi was founded by Zac Prince and Flori Marquez. The company has raised over $20 million from firms, including Coinbase Ventures. 

    They are young and growing, and doing so at a fast pace. As far as bitcoin lending platforms -- this is one to watch.

    BlockFi pros and cons

    Pros:

    • High interest rate for BTC and ETH. Up to 6% interest rate on BTC (only for deposits under 5 BTC) and up to 4.5% on Ethereum lending, compounded. These are some of the best crypto interest rates you’ll find for both BTC and ETH. 
    • 4.5% interest rate for borrowers. This is a plus for lenders. Why? Because it encourages people to borrow from the platform with attractive ETH or BTC interest rates. Think of it as liquidity. The more liquidity, the better for everyone.
    • No minimum deposit. BlockFi also opens its doors to all no matter the size of their wallet.
    • High security. Your crypto assets are stored with Gemini. This 3rd party depository trust is a licensed custodian with insurance and has a perfect track record void of hacks or customer fund losses. In fact, Gemini works with many regular lending sites and other best cryptocurrency lending platforms you might use.

    Cons: 

    • Digressive interest rates. The rates decrease to 3.2% for deposits over 5 BTC. But this shouldn’t be a problem for most people who look to lend bitcoin for interest.
    • Limited cryptocurrencies available. Only BTC, ETH, LTC, USDC, GUSD, and PAX are available. 
    • Not FDIC insured. Though Gemini -- their wallet provider -- has a strong track record for security.

    Payout terms: 

    Monthly interest payments in the asset-type that you deposit with BlockFi.

    Example: if you deposit Ethereum, then you earn interest in ETH.

    The interest is paid into your ETH account once a month. 

    #2 YouHodler

    YouHodler is a relative newcomer, but it’s a strong competitor. With YouHodler, you can loan out your bags and earn interest on crypto up to 12% APR.

    If you’re more inclined to borrow funds, you can also get a crypto loan backed by the TOP 12 coins with up to 90% LTV.

    YouHodler pros and cons

    Pros:

    • Trust. YouHodler is a member of the Crypto Valley Association in the Western Switzerland Chapter.
    • Low minimum deposit. Starts at just $100. 
    • Flexible payments. Instant credit card and bank withdrawals included.
    • BNB available. YouHodler is the only crypto lending platform on which you can earn interest on BNB.
    • Multi-Hodl. A unique offering letting lenders earn interest on crypto from 80% of their portfolio while using 20% of their portfolio to buy and sell other cryptocurrencies.
    • Bitcoin lending interest rate. Lenders earn 4.8% APR on their deposited BTC, which is above average.
    • Demo funds. Lenders can first experiment with demo funds to find the best crypto lending option for themselves. 

    Cons:

    • Lacks experience. Young cryptocurrency lending platform without a proven track record.
    • Compliance. Strict KYC/AML laws .
    • Modest stablecoin APR. Best crypto lending platforms offer higher interest rates to lenders who deposit stablecoins.
    • Limited choice. Only BTC, BNB, USDT, PAX, PAXG, USDC, and TUSD are available to earn interest on cryptocurrency.

    Payout terms: 

    Lenders get paid interest at the end of the month.

    When you cash out, you have the option of withdrawing in the crypto or fiat of your choice. 

    #3 Coinloan

    Coinloan isn’t a company like the others. It is one of the first P2P crypto lending platforms for crypto-backed loans.

    They began in 2017 in Estonia, which is where they are currently located.

    They have a simple setup process, bank grade security, and they offer crypto lending and borrowing in various cryptocurrencies.

    Coinloan pros and cons

    Pros:

    • Trust. Partnered with Ontology, Bitcoin.com, and Acquiring.
    • Best Crypto APR. 6.6% for BTC, 5.13% for ETH, 5.97% for BCH, 5.34% for LTC, and 5.13% for XMR.
    • High Fiat/Stablecoin APR. 10.5% for Euro, USDT, USDC, TUSDT, and PAXOS. 
    • Frictionless. Coinloan charges no fees for depositing and withdrawing funds on the platform.
    • Wide offering. Coinloan provides plenty of tools to reach your financial goals: crypto-to-crypto or crypto-to-fiat loans, interest account, crypto exchange, and beyond.
    • Terms flexibility. You can choose the interest rate, loan term, loan amount, repayment method, etc.
    • Always open. Licensed financial institution status and worldwide coverage allow them to offer service almost anywhere and anytime, day or night.
    • Transparency. A unique Loan Agreement for each loan is generated, and users can export loan history to CSV for accountability purposes.

    Cons: 

    • P2P reliant. A young company that relies on a P2P network. Perhaps best to wait for the P2P network to grow so you can borrow or lend crypto for interest more easily. 
    • Security. No insurance and not much mention of storing customer funds in cold wallets. 
    • Infrequent Customer Service. No 24/7 chat assistance and wait time might be longer than other competitors. 

    Payout terms: 

    Lenders get paid interest at the end of the loan. 

    The amount is paid via bank transfer (SWIFT, SEPA) or AdvCash. 

    The interest rate depends on the lender since the lender's “select interest rate, loan currency, term and desired loan amount.”

    #4 BTCPOP

    BTCPOP was founded in 2014 in the UK by Lee Bartholomew and is currently based in the Marshall Islands.

    They offer lender and borrower matching; this means you could possibly find a large range of crypto lending and borrowing options for entrepreneurs, individuals, and new companies spanning the globe.

    According to BTCPOP, you can “quickly get loans from other members or make some money by loaning money you have. You set the terms. You set the amount.”

    BTCPop pros and cons

    Pros:

    • Chat system. Users can discuss terms, details, risks, etc.
    • Direct loan servicing. BTCPOP will help you get the loan.
    • Currencies available. BTCPOP does not regulate which currencies can be deposited, borrowed, or staked. Since they are a P2P platform, they leave all of this up to their users. 
    • Terms flexibility. BTCPOP does not regulate terms, limits, prepayment penalties, deadlines, payout dates, or other items. Since BTCPOP is a P2P platform, they leave all of this up to their users.
    • Reputation tracking. BTCPOP tracks the reputations of borrowers and creditors, so everyone’s money stays safer.
    • Security. BTCPOP stores its clients’ coins offline (in cold wallets).

    Cons: 

    • High rates for borrowers. Which might mean less traffic for lenders.
    • Trust. Not as many institutional backings or pedigrees as other sites.
    • Fees. Since BTCPOP does not regulate or determine rates on loans, BTCPOP instead charges fees. They charge a listing fee of 1% and 2% for any late payments. They also charge staking fees, verification fees and more, which can all be found on their fee list (click “view our fees”).

    Payout terms: 

    Lenders get paid interest when and how they choose.

    Each lender sets up their own terms, conditions, interest rate, and coins. 

    #5 Xcoins

    Xcoins was started in August 2018 by a fellow named Sergey Nikitin. He decided to leverage PayPal to make the operation work. 

    Lenders allow people to borrow their BTC, and in return, the lenders get monthly PayPal payments at various interest levels. 

    Xcoins is a P2P bitcoin lending platform, so lenders set their own rates and borrowers choose to take them or not.

    XCoins pros and cons

    Pros:

    • Low minimum deposit. Lenders can deposit as little as $20 in BTC and start to earn interest on BTC. 
    • Fixed terms. Lenders who loan bitcoin for interest can deposit and withdraw anytime, but borrowers must pay off their loan in one lump sum. 
    • Rate flexibility. Lenders set their own rates. When borrowers require a loan, Xcoins fetches the best offers matching the request.
    • Geo-Availability. 167+ countries serviced -- including the U.S. and U.K.
    • Trusted. Over 250,000 satisfied customers globally.
    • Instant. You’ll receive crypto as soon as you take out a loan. 
    • 50% guarantee. Xcoins offers a 50% profit margin guarantee to protect its lenders from fraudulent chargebacks. 

    Cons: 

    • BTC only. This P2P bitcoin lending site uses only bitcoins. But the crypto space is quite vast and a wider choice of cryptocurrencies would be better. 
    • User experience. Not as modern and pleasant as other alternatives.
    • No insurance. Customer funds, for lenders and borrowers, are not insured against hacks, scams, or theft. 

    Payout terms: 

    Lenders get paid interest at the end of the loan. 

    The amount is paid to their Paypal or Visa/Mastercard in the fiat of their choice. 

  • Best Crypto Interest Rates -- Compared

    Let’s focus, shall we? 

    Choosing BTC lending sites with the best crypto lending rates for lenders will allow you to get the most bang for your buck. 

    So let’s take a look at just the rates each of these five crypto lending programs.

      Available​ Interest Rate​ Terms Interest payout
    Blockfi BTC, ETH, LTC, and stablecoins 3.2% to 8.6% Flexible Once a month
    YouHodler BTC, BNB, and stablecoins 3% to 12% Flexible At loan end
    Coinloan Euro, BTC, 4+ altcoins, and 4+ stablecoins 5.13% to 10.5% Set by P2P Set by Lender
    BTCPOP BTC, and 50+ altcoins Set by P2P Set by P2P Set by Lender
    Xcoins BTC only 10% to 15% Set by P2P At loan end
  • Choosing The Best Bitcoin Lending Platform - 9 Factors to Consider

    What turns regular BTC lending sites into the BEST bitcoin lending platforms? 

    It’s a combination of several important factors.

    You should consider at least the following factors.
     

    1. Best crypto lending interest rate

    Pay attention to both the interest rate offered to borrowers and the interest rate offered to lenders.

    Source: Wall Street Survivor YouTube Channel
     

    The interest rate offered to borrowers should be low enough to get them borrowing while high enough to earn money for the cryptocurrency lending platform and lenders. 

    The crypto lending rate should also be balanced enough to give lenders a good return. 
     

    2. Security

    It won’t matter if lenders earn high amounts of interest on bitcoin or other cryptocurrencies if it ends up being stolen through hacks or exit scams. 

    Make sure to use cryptocurrency lending platforms with a level of security you feel safe with, as well as lending out only the amount you’re okay with losing.
     

    3. Cryptocurrencies available

    How many cryptocurrencies does a platform offer for lenders to deposit?

    Some platforms like Xcoins only let lenders lend BTC. 

    This is great if lending bitcoin for interest is the only cryptocurrency you have or want to use. But many people in the crypto space also have altcoins sitting around.

    If you have other altcoins or stablecoins you want to put to work earning interest for you, then consider going with a platform like YouHodler or Coinloan

    If you prefer P2P lending, BTCPOP offers 50+ altcoins to earn interest on crypto. 
     

    4. Reputation

    Some lending platforms, like YouHodler for example, are fairly new. They haven’t had time to build up a solid reputation yet.

    Warren Buffett quote about reputation

    That doesn’t mean you should stay away, only that you should be a little more cautious with how much money you put in. 
     

    5. Term flexibility

    Some platforms, like Blockfi, have very flexible loan terms. 

    Borrowers can pay off their loan anytime with no penalty; lenders can withdraw their funds anytime without penalty too. 

    Other sites like Coinloan, however, are P2P platforms; they let users borrow and lend crypto with each other and set up their own terms. 

    Take time to think about how flexible you want to be with your funds.
     

    6. Payment Frequency

    Blockfi pays and charges interest on your loans once a month. It’s like a standard bank loan contract in that sense. 

    Other platforms, like Xcoins, have variable payment frequencies. Make sure to investigate this and ask yourself how and when you prefer to be paid.
     

    7. P2P vs. non-P2P

    Coinloan is a P2P crypto lending platform. This means that lenders and borrowers make contracts directly with each other. 

    These platforms often have less liquidity (chance of finding the right terms for you).

    There are fewer people who want to go through the hassle of finding and setting up a loan versus simply depositing and withdrawing their crypto on a platform like Blockfi.
     

    8. Geo-restrictions

    Since all these DeFi platforms are centered around finance, they all need to comply with KYC and AML laws. 

    As a result, some platforms may not be available to users in certain regions. 

    When considering a platform, be sure to check which regions it operates in. Even the top crypto lending platform is of no use to you if they don't operate in your country.

    9. Limits

    Each platform has its own limits on deposits, withdrawals, and terms. 

    Not only that, but each platform has different limits on each cryptocurrency they offer. 

    Each platform will have different deposit and withdrawal limits for BTC, ETH, Fiat, and stablecoins. 

    You might want to check these before deciding which cryptocurrency to use on which site.

  • Lending Bitcoin vs. Bitcoin HODLing -- which is better?

    So, is it worth the hassle to sign up for one of these 5 top crypto lending platforms? Why not just HODL your crypto? 

    Well, there are a few reasons.
     

    1. Math

    The first reason comes down to simple math. 

    Let’s say you bought 1 BTC at $10,000, and you hold it for 1 year until the price of BTC goes up to $20,000. You sell it and you’ve realized a $10,000 proft.

    But what if you did HODL your crypto on one of these top crypto lending platforms, say Blockfi

    In 1 year, you would have earned an additional 8%, which would be $800, for a total profit of $10,800 Boom. 

    hodling vs lending

    Some BTC lending sites even pay interest in BTC. So you’d have made a profit from the BTC price increase too. 
     

    2. Security

    If you HODL your crypto, then you are fully responsible for it. You need to make sure you have it very safe. 

    While this is good for experienced investors, this isn’t the case for those who aren’t technology savvy. 

    If you use a crypto lending site like BlockFi -- which emphasizes its security level, then you’ll rely on their banking-grade technology to keep your crypto safe.

    Of course, not every crypto lending site has the best security. 

    Sites like Xcoins or Coinloan may not have the revenue or the experience to keep your funds as safe as Blockfi would.

    My advice: never lend more than you’re afraid to lose. 

    Keep in mind that DeFi is a new technology with plenty of hiccups left along the road.  
     

    3. Peace of mind

    This might be the best reason. 

    If you use a crypto lending site, you won’t have to deal with the stress of trading, securing, or anything else. 

    Just loan out your crypto and watch your passive income grow.

  • What is Bitcoin Lending, Exactly?

    Bitcoin loan sites are becoming a hot topic. 

    Cryptocurrency backed loans are fast becoming a new way for the investors, miners, hedge funds, and even the unbanked to leverage their finances and support their business ideas. 

    All the while, the HODLers with crypto bags can earn interest on Bitcoin holdings and thus gain more financial freedom through passive income. 

    All they need to do is learn how to lend bitcoin for interest.

    what is crypto lending

    Overall, the concept is simple: 

    • For borrowers. You put up a small bag of crypto as collateral. You then get a credit line in fiat or stablecoin to spend as you see fit. You pay back the loan according to the terms.
    • For lenders. You put up an amount of crypto and earn interest from it. Bing, bam, book. It’s quite simple to earn interest on BTC nowadays.
    My advice: Lending cryptocurrency is the best way to HODL.
  • The Best Bitcoin Lending Sites --- To Stay Away From

    Not all cryptocurrency lending platforms are created equal. 

    It may be nice to earn interest on bitcoin, but not if your bitcoins get stolen or misappropriated somehow. 

    While we all want to earn interest on BTC, we should pay attention to the security of our assets.

    When learning how to earn interest on cryptocurrency, it’s necessary to learn to be safe too.
     

    SALT

    In my opinion, Salt is not the best crypto lending platform out there. 

    Salt made the news for being the first crypto lending site. The company was formed in March 2016 by Shawn Owen and quickly rose in-game through their ICO. 

    However, their ICO promised many things that never happened -- such as loans in various U.S. states where Salt had no legal ability to provide loans.

    salt crypto lending platform

    Since then, they've had many speed bumps. 

    For one, they have been under investigation by the SEC for not listing their ICO as a security

    This can lead to the freezing of their assets and the assets of all their users. 

    Though they are working on this, their ICO and the SEC investigation raise too many red flags. 

    Additionally, Shawn Owens has stepped down as CEO. 

    All this compounded knocks SALT off of our list of the best bitcoin lending sites. 

    They don’t even have the best crypto lending interest rates, so why go with them?

  • Caution is the Watchword. Beware of Scams.

    The old saying rings true: if you don’t own your private keys, you don’t own your crypto. This holds for crypto lending platforms. 

    The concept of lending BTC for interest (and other cryptocurrencies) is outstanding and will flourish. But as we ramp up, there will be growing pains. 

    A site might have the highest crypto interest rates -- but don’t let greed fool you. Always do your own research!

    In January 2018, the cryptocurrency lending platform Davor Coin announced: “Lend us your money and you’ll have the chance to win $1,000,000.” 

    People around the globe registered and lent their money to Davor Coin. A week later, the company received cease-and-desist letters from the state of Texas. 

    People wanted to earn interest on Bitcoin, but they didn’t know what was going to happen.

    Davor Coin’s lending scheme worked as long as values kept rising. But when cryptocurrency values went crashing -- BTC lending platforms ran with the cash. 

    Some of them were fined by the SEC and given cease-and-desist letters from the same SEC regulators alleging securities fraud.

    Bitconnect is another great example, as is Lendconnect. 

    Both companies offered 'too good to be true’ returns on investment -- and they were too good to be true. 

    seems to good to be true quote

    Source: memegenerator.net
     

    These ‘opportunities’ are also called Ponzi schemes

    Bitconnect offered 1% per day compounded. It's shocking. This cannot go on forever. 

    This example raises awareness of the worst of crypto lending sites. 

    Be cautious, do research, and don't expect the moon -- and you'll be safer by far. 

    There are plenty of legit bitcoin lending sites offering better interest than a bank, without you needing to go to scam bitcoin lending sites.

  • Lending Crypto -- The Future of Passive Income

    Money makes the world go round, they say. And crypto is no different. 

    The in’s and out’s of how to earn interest on bitcoin are getting simpler and easier by the day. 

    Once these lending platforms find their footing and their audience, we will see fantastic financial tools working to open the world of finance to the unbanked.

    Most importantly, it will become incredibly easy to make passive income with bitcoin lending. 

    Lending your crypto is becoming safe, easy, and a great way to earn passive income. 

    I hope you enjoyed my crypto lending comparison. And remember: better to start early, so that compounding interest can work for you.

    More Awesome Resources

  • FAQ

    How does bitcoin lending work?

    If you’re trying to earn from your bags of crypto -- it works by letting a bitcoin lending site use your crypto to lend it out to borrowers. The site will then pay you a part of the money they earn -- this is usually resolved as a fixed interest amount. 

    Is bitcoin lending safe?

    It is as long as you pick a site with a good reputation and strong security measures. It helps if they have insurance. If you find a site with strong security and insurance, then your funds should be safe in the event of a hack. 

    Is bitcoin lending a complicated process?

    No. The process is often easier than a standard loan application. The whole process should take between 30 minutes to an hour. Most of that time is waiting for your collateral or lending amount to arrive -- which, depending on the crypto you selected, could be almost instantaneous. 

    What interest can I earn on bitcoin lending sites? 

    If you deposit $1000 of Bitcoin on a term of 4.5% per year -- then you can $45 during the year, or more if the bitcoin lending site compounds your interest. If you deposit $1000 worth of USDT then you can find terms of 11.5% or more -- which means a yearly income of $115 -- or more if the interest is compounded.

Posted by R.R. Hauxley

R.R. Hauxley traveled around the world ... 1 year on 1 Bitcoin. 20 countries, 12 months, 1 Bitcoin. He wrote a book about it: Stolen Wallets and Where to Buy Them. Along the way he met and interviewed the sharpest, brightest minds in crypto today: Vitalik Buterin, Charlie Lee, and more. Today Rafael educates the crypto curious and delves further into the incredible world of blockchain.

Comments

Ryan
I'm looking for a P2P where I can lend my crypto but I only have a small amount. I'm looking for a site that accepts funding around 0.015 BTC and could earn weekly with 10 to 15% gain. Please provide me a list where I could check. Thanks and more power
Danny
What's your take on Crypto[dot]com?
Raps
Same question here Smile
Bitcoin Traveler
I'll see if we can write an article about this site, Thanks.
Alan
Nice article but for clarification Celsius has the same insurance status as NEXO. It’s the BitGo insurance on cold Wallets .. but as Celsius doesn’t see this as completely insured so they call it "no insurance, where NEXO tells you "yes we are insured“. Also the rate on ETH for BlockFi is now 3.25% and not 6% that the article states.
Mendel
It's all updated. Thanks Alan!
NotaMesa
Great article! I do have a question for you... What are your thoughts on LEDN? I have scoured the Googles and haven't found much on it compared to, say, Nexo. It seems like a good place, but being new to this, I seek the thoughts of a pro.
Jamie
i watched a interview with the founders. its competitive but they are really only differentiating themselves by being able to serve the latin america markets. IMO better off with the 3 mentioned here. i would add coinlist but there still is a waiting list
Bitcoin loans
Thanks for informative post. I am pleased sure this post has helped me save many hours of browsing other similar posts just to find what I was looking for. Just I want to say: Thank you!
Milos
It's our pleasure! Smile Many thanks for the feedback. Don't forget to stop by again when something else bothers you with crypto in the future, I am sure we already covered it - if not, please suggest it! Smile
John
What do you mean by. "For lenders: you put up X amount of crypto and earn Y amount of interest from it. Bing, bam, book. Earning interest on crypto is that simple." Put it up where - do you send it to one of the lending site's crypto wallets. What happens when you want it back, do you just make a request for it?
Bitcoin Traveler
Yup. You sign up on one of the sites, follow their instructions (usually sending to their smart contract) and their smart contract will begin calculating how much interest you'll be earning. When you want it back then you follow their withdrawal instructions and put in your withdrawal address.
Britokany
Please I need some one that can help me, am a new person into the system, how can I buy the btc and eth and how much are they selling, thanks
Milos
Hey Britokany! First of all, check these articles https://cryptomaniaks.com/should-i-buy-bitcoin-good-investment and https://cryptomaniaks.com/should-i-buy-ethereum-good-investment to decide which cryptocurrency to invest in. Then, you can proceed with this one https://cryptomaniaks.com/how-to-invest-in-bitcoin to better understand our 5-step starting process. Hope it helps!

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About CryptoManiaks

We are CryptoManiaks.  Collectively, we have over 25 years of experience in the crypto world and are all passionate about guiding people through the complex world of crypto investing.

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