Crypto & Bitcoin Loans: The Ultimate Guide and 5 Best Sites in 2023

Dozens of Bitcoin loan websites exist. 

Each of them offers competitive rates, different loan-to-value ratios, the great benefit of instant Bitcoin loans. 

But these BTC loan sites are not equal. Some stand head and shoulders above the rest. 

And the best crypto loan sites in 2023 are CoinRabbit, YouHodler, Bankera, Coinloan, and Lendabit.

	Cryptos Avail.	Competitive Advantage
	BTC, ETH, DOGE, DGB, and 4+ stablecoins	Reputation & Security	Borrow on CoinRabbit
	BTC, ETH, 12+ stablecoins/altcoins	Turbocharge & MultiHodl features	Borrow on YouHodler
	BNK, USDT, BTC, ETH, XEM, and DASH	Best Loan-to-value offers	Borrow on Bankera
	BTC, ETH, 5+ stablecoins/altcoins	Variety of P2P loan options	Borrow on Coinloan
	BTC, USDT, ETH	Low origination fee	Borrow on Lendabit

Now, comparing Bitcoin loans, let’s see my favorite crypto-backed loan platforms.

You’ll see how to borrow money using your crypto as collateral and stay safe doing it.
 

#1 CoinRabbit

CoinRabbit is a digital finance platform for lending and borrowing cryptocurrency as collateral. The platform has partnered with ChangeNOW and Guarda to provide smooth transaction and storage solutions.

CoinRabbit was founded in 2020 with headquarters in St. Vincent and the Grenadines. When they use the platform, customers will be able to borrow crypto under any conditions and without hassle.

Pros

• High security thanks to the Cold wallet storage
• Accepts more than 137 currencies as a collateral
• You can easily get and manage your loan thanks to the simple-to-use platform
• There is no need to complete KYC & credit check procedures
• Customer support is available 24/7 and provides timely responses
• The platform enjoys a significant reputation in the community and you will find many positive comments about its services
• You can get a crypto loan in 15 minutes and enjoy unlimited loan periods

Cons

• CoinRabbit is accessible only in the web version and you won’t find dedicated apps for iOS and Android devices
• It is not possible to deposit fiat currencies, only cryptos
• You can find only a limited number of loan currencies

Countries available

Customers from all over the world are welcome at CoinRabbit. According to the terms and conditions, you are not allowed to access the site if you are a citizen or resident of a sanctioned country based on the latest lists of the US Office of Foreign Assets Control (OFAC), the European Union, the United Nations and EU Member States, the UK Treasury, or similar.

However, you should be aware that you use the platform and its services at your own risk.
 

Collateral currencies available

CoinRabbit allows you to use 137 coins as collateral. Just choose from crypto loans in BTC, ADA, ETH, SOL, XRP, USDT, or alternative options.

Loan currencies available

If you want to get a loan on CoinRabbit, you can select from several currencies such as USDT, USDC, BUSD, ETH, BTC, DOGE, and DGB.

#2 YouHodler

YouHodler is an EU and Swiss-based company with two main offices: Limassol, Cyprus, and Lausanne, Switzerland.

They began offering instant crypto loans in 2019 and have been a rising star ever since thanks to their customer service and loan products.

Pros

• Trust. YouHodler is an active member of the Blockchain Association of Financial Commission and the Crypto Valley Association. 
• Interest rate. YouHodler offers rates from 5% to 13%, depending on how much collateral you put up. 
• Up to 90% loan-to-value. Many platforms require you to deposit twice the worth of your loan (50% LTV). With YouHolder, you can deposit less if you need to.
• Instant crypto loan. Get instant crypto and cash loans as well in EUR, USD, USDT, or Bitcoin loan instant depending on your collateral.
• $1 million insurance fund. YouHodler created their own insurance fund to make sure their customers feel safe.
• 18+ cryptos for collateral. If you have bags of cryptocurrencies in the top 12, you can use them as collateral for a cash loan.
• Multi-HODL. Their app has a feature to use part of your loan for speculating in crypto.

Cons

• Lacks experience. They are growing rapidly, but their reputation is not as solid as others.
• Risky features. Some functions, like TurboCharge (borrowing crypto to buy more crypto), can be risky for new users.

Countries available

YouHolder is available in the E.U. and U.K., but not to customers in the U.S. 

Collateral currencies available

YouHodler supports 18+ popular cryptocurrencies and tokens, including BTC, BCH, BNB, ETH, LTC, XLM, XRP, DASH, and REP.

Loan currencies available

You can receive payments in Euro, USD, BTC or USDT depending on which crypto you choose as collateral.

#3 Bankera

Bankera is a London-based firm that started off as SpectroCoin in 2013 by a group of Lithuanian developers. 

The team created a blockchain-based cryptocurrency exchange, wallet, and payment card that’s accepted anywhere Bitcoin is accepted.

Now, the team has created Bankera, a very good platform to borrow Bitcoin instantly (as well as altcoins and fiat).

Pros:

• The BNK Banker token. Choose to pay and use their native BNK token and receive up to a 3% reduction in your interest rate.
• High LTV rate. You can choose up to a 75% loan-to-value rate.
• Low minimum loan. You can get a loan that’s as little as 25 Euro.
• Flexible repayment. Pay back your loan in full anytime.

Cons:

• Interest rates. 9.95% to 15.95% interest rate when the interest is paid in non-BNK coins.
• Lacks insurance. No insurance funds to protect customers.

Countries available

Bankera is available worldwide. 

Collateral currencies available

BTC, ETH, XEM, DASH.

Loan currencies available

You can receive payments in Euro and a few cryptocurrencies: USDT, BNK, BTC, ETH, XEM, and Dash.

#4 CoinLoan

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

They have a simple setup process, bank-grade security, and they offer instant BTC loan and lending (including various other cryptocurrencies as well).

Pros:

• Trust. Partnered with Ontology, Bitcoin.com, and Acquiring.
• Variable Rates. Lenders and borrowers choose rates. Check the platform for all currently available rates.
• High-grade security: All crypto assets are stored on cold multi-signature wallets with distributed key storage.
• Flexibility. Borrowers can make early loan repayment with no penalties.
• Frictionless. Bitcoin loan charges (or any other cryptocurrency) are non-existing for depositing and withdrawing funds on the platform and these fund transfers are at the speed of crypto.
• Always open. Licensed financial institution status and worldwide coverage allow them to offer service almost anywhere and anytime, day or night for easy Bitcoin loans.
• Transparency. A unique loan agreement for each loan is generated, and users can get a Bitcoin loan history and export it to CSV for accountability purposes.

Cons: 

• P2P reliant. Since borrowers and lenders need to find each other, there are fewer of them than most platforms and here users can’t have an anonymous Bitcoin loan. Perhaps best to wait for the P2P network to grow so you can lend or borrow BTC instantly or any other crypto more easily. 

Countries available

CoinLoan is available worldwide. 

Collateral currencies available

Borrowers can deposit as collateral Euro, USDT, USDC, PAXOS, BTC, TUSD, ETH, BTC, LTC, XMR, ONT, CLT.

Loan currencies available

Currently, you can take a loan in USD, EUR, GBP, RUB, BTC, ETH, LTC, XMR, TUSD, USDC, PAX, USDT, EURS, DAI. 

#5 Lendabit

Lendabit is a fairly new platform. They don’t have as much experience or customers as other platforms, but they partnered with BitGo for their wallet services and insurance.

Their BitGo partnership increases their credibility and makes it worthwhile to consider for BTC loans. 

Pros:

• Security. Funds are safely protected by multisig technology, BitGo custodial services, and 2FA.
• 0% interest for 45 days. After 45 days the rates go from 5% to 15% 
• Pay interest later. Don’t worry about weekly or monthly payments, just pay the interest at the end of the loan.
• Flexibility. Borrowers can make early loan repayment with no penalties.
• BITGo Wallet services. They are partnered with BitGo, which eliminates risks and increases transparency through their wallet service. 
• Insurance. LendaBit.com guarantees 100% insurance coverage through BitGo for all supported cryptocurrencies. BitGo covers all insurance costs and deductibles.

Cons:

• New platform. Low liquidity, traction, and user reviews.
• No fiat credit line. You can only withdraw your borrowed money in USDT.

Countries available

Lendabit is available worldwide. 

Collateral currencies available

BTC, ETH, USDT

Loan currencies available

BTC, USDT

[Bonus] NEXO

Nexo, which was also profiled by Forbes, was founded in 2017 and is backed by the founder of TechCrunch: Michael Arrington. 

They have nearly 200,000 customers and back payments in 45 Fiat currencies.

Pros:

• High flexibility. Repay your loan anytime. 
• Low interest. Starts at 5.9%, though they do go higher with the various plans Nexo offers.
• Top-notch user experience for easy Bitcoin loan. You won’t find better anywhere else.
• High security/insurance. The platform is SOC 2 Type 2 certified. BitGo Custody carries $100 million USD in insurance protections.

Cons: 

• Crypto available. Although borrowers can withdraw in 45+ fiat currencies, lenders can only deposit stablecoins and fiat currencies. You’ll need to find another site to earn interest on your crypto. 
• Medium Rates. Some platforms offer lower interest rates. Though they require more collateral or shorter repayment terms.
• Punishment for non-NEXO coin users. APR without staking NEXO tokens is 11.9%. 

Countries available

NEXO is available in the U.S. and E.U.

Collateral currencies available

BTC, ETH, NEXO, LTC, BNB, XRP, BCH, EOS, XLM, PAXOS, and 20 more. 

Loan currencies available

You can receive payments in USD, Euro, and 45+ total fiat currencies.

In addition to instant USD and EUR loans, Nexo customers can also borrow instantly using a stablecoin such as USDT, which they can then exchange for a preferred cryptocurrency and/or convert into fiat. 

Choosing the best Bitcoin loan sites with the most affordable rates for borrowers 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-backed loan sites offers.

A great Bitcoin loan website is not necessarily the best for you specifically. 

You might need an instant Bitcoin loan or a BTC loan that can be repaid instantly or with a long repayment period. 

Consider these factors below to determine what BTC loan site you’re looking for, exactly.
 

1. Reputation

In the crypto world, reputation goes a long way. BTC loan sites aren’t an exception.

Check the platform's reputation among customers and read their reviews. 

Be sure to check the reputation of the people running the company too. 

CoinRabbit for example, has a very strong reputation. 

They’re located in St.Vincent and the Grenadines and they’ve secured many partnerships in the market.

Their team has significant experience in crypto.

Their security measures for keeping collateral safe are also top-notch. All this contributes to their strong reputation. 
 

2. Rates

Rates vary a lot between these BTC loan sites. 

They are so different because they depend on how much collateral you dedicate, how long you want the loan to last, and other factors. 

Bankera, for example, has standard rates ranging from 6.95% with a 25% LTV, to 9.95% for 50% LTV, and 12.95% for 75% LTV. 

Keep in mind this is only if you elect to pay interest in BNK coins; BNK coins are Bankera’s own cryptocurrency. 

If you choose to pay interest in any other coin, then the rates jump 3% to 9.95%, 12,95%, and 15.95%.

To sum it up, rates can change drastically within one platform, and even more from one platform to another one. 

So make sure to submit the same loan conditions between platforms and see which one offers you the best rates. 
 

3. Duration

Do you need a short BTC loan or a loan for longer? 

Some of these platforms allow you to pay off your loan whenever you want. Other BTC loans lock you into the loan. 

Each one is different, so be sure to be clear on how long you want to be paying interest.
 

4. Terms

Are there any hidden fees? Are there prepayment penalties? 

Make sure nothing surprises you. Carefully read the terms.

If you need a quick injection of funds that you plan to pay back soon, then Coinloan offers instant BTC loans for a duration of only 7 days. 

On the other hand, if you’re looking to buy something bigger like a car and need to spread your larger loan out for longer, then you can consider a Bankera loan for 12 months. 

5. Security

Remember the old crypto saying: not your keys, not your coin. 

All these platforms require you to give them some of your cryptos; that’s how collateral works. But they won’t be able to pay you back if it’s stolen. 

Make sure they use cold wallets and other security measures. 
 

6. Insurance

Some of these platforms offer insurance. 

They hold insurance in case hackers breach their security measures 

If you’re putting in more collateral than you’re willing to lose, then make sure they have insurance in case something bad happens. 
 

7. Verification

All these platforms need to verify your ID in order to be in business so that means no anonymous Bitcoin loan. 

After all, if someone launders money through them, law enforcement can shut them down. 

But make sure they are storing your ID and other forms of verification in a safe way. 
 

8. Currencies 

The best Bitcoin loan sites need to offer a lot of other currencies for collateral and borrowing as well.

Lendabit concentrates on BTC loans as well as ETH, and USDT exclusively. 

This helps them keep tight security, but you’ll need to look somewhere else if you want to borrow various cryptocurrencies, stablecoins, or fiat currencies. 

Coinloan, on the other hand, lets you borrow over 12 currencies and use 14 currencies as collateral. 
 

9. Speed

Traditional loans from banks take several days to process. 

After you apply, you need to wait for them to check your credit, get loan officers to sign off, and then deposit your loan amount.

Get easy Bitcoin loans as fast as possible! DeFi loans are much faster. 

CoinRabbit, for example, allows clients to get loan in 15 minutes, depending on how fast they get loan collateral.

10. Limits

Another difference between DeFi platforms and traditional loans which you should consider are loan limits. 

Traditional banking won’t lend small amounts at low interest rates. It’s simply not worth their time or cost. 

Credit cards let you “take out cash” but it comes with steep fees.

YouHolder, by contrast, let’s you take out a loan as low as $100 (in case you need to pay a quick bill).

What about if you want to buy a home? 

Lendabit lets you borrow a maximum of 535 BTC. You can buy a very comfortable home for that amount. 
 

11. Geo-restrictions

As a result of KYC and AML laws, some platforms may not be available to users in certain regions. 

When comparing Bitcoin loans, be sure to check which regions the website operates in.

HODL -- it stands for Hold On For Dear Life. It’s an effective strategy. 

You don’t lose money by selling at the wrong time. Instead, you wait until the height of the next Bitcoin bull run. 

In the meantime, however, you need cash. 

Here’s a few great reasons to put your Bitcoin up as collateral instead of selling it. 
 

1. You need funds to trade

Do you see a killer trade? 

You want to make it but all your crypto is tied up. 

If you instead take out a BTC loan from one of the best Bitcoin loan sites, you can use your existing crypto for collateral and get another crypto to trade with.

After you make your trade, you can pay back your BTC loan and get your collateralized crypto back. 

YouHodler, for example, has a Turbocharge service that allows you to get a chain of Bitcoin loans.

You set YouHolder to use your borrowed fiat to purchase additional cryptocurrency without commission. 

Then, those additionally purchased cryptocurrencies are used as more collateral for additional loans. 

It’s like a chain of loans. 
 

2. You need funds to spend

Perhaps you want to buy things and prefer to borrow BTC instantly -- like something from one of these companies on our ultimate list of places to spend Bitcoin. 

Or maybe you need fiat to buy a car, computer, or other large expense. 

Instead of cashing out your crypto and regretting it when the price skyrockets, why not put it up for collateral and get cash instead?

Lendabit lets you borrow a maximum of 535 BTC.

That will cover a car, a house, a remodel of your kitchen, your kid’s college tuition, a hot tub in the backyard, anything and everything you can think of. 

And at the end of the BTC loan, you can withdraw your crypto collateral and, if prices went up, sell it for a profit. 
 

3. Tax payments

Did you know that cryptocurrency is treated as property by the IRS -- and by most developed countries? 

Owning crypto is similar to owning stocks, bonds, and other forms of personal property. 

If you sell your crypto and sell it for more than you bought it, this is considered a “capital gain” by the IRS, and you must pay taxes on it.  

Exchanging crypto-for-crypto is also a taxable event that must be reported.

But borrowing money against your crypto is NOT a taxable event. 

This makes crypto lending sites a great way to gain access to the money you need without having to sell your crypto investments and then pay taxes on top of them.
 

4. If you need funds right now

Life can throw some unexpected problems our way.

Sudden car repair, medical bill from an accident, unexpected home repair from storm damage, etc. 

Sometimes we might not have the cash to cover it right away.

Coinloan has a pretty cool feature: instant Bitcoin loans. 

There’s no way you’d be able to get instant loans with traditional loan platforms and institutions. 

Cool, right? 

If all these BTC loan sites are relatively new and still somewhat risky, why shouldn’t you just get a regular loan? 

After all, regular loans from traditional banks are a well established, secure method of paying your expenses. 

Or are they?

This table highlights the top differences between BTC loan sites and banks. 

.

A traditional loan takes a while. 

This is due to the credit check they are required to perform. 

If you have low or medium credit, they’ll charge a high APR. 

Even with a high APR, unless you’re applying for a credit card, they will ask for some form of collateral (your home for a mortgage loan, your car title for a car loan, etc). 

Using crypto-backed loans helps you speed up the process while avoiding high APR and credit checks because Bitcoin loans are better. 

Bitcoin loans are most similar to refinance loans on mortgages. 

When you take out a refinance loan on a mortgage, you are giving the lender collateral (the legal title to your home) in exchange for a loan of cash.

When you repay your loan and interest, you get the title back.

Bitcoin loans work by taking your Bitcoin or other cryptocurrency and holding it as collateral. 

When you repay your loan plus interest, you get your Bitcoin back. 

The best Bitcoin loan sites secure a borrower's loan by keeping their crypto as collateral. 

If the borrower fails to pay back their loan, their Bitcoin is sold to cover it. 
 

How do crypto loan sites profit from this?

They make money from this operation in various ways. 

Most charge an “origination fee” of around 2% on your loan amount.

If you borrow $1,000, you pay $20 to the site. This is in addition to the interest rate you agreed on.

The best Bitcoin loan websites will keep your crypto as collateral and give you a loan in the fiat or stablecoin of your choice. 
 

Is crypto’s volatility dangerous for my BTC loan?

Keep in mind that crypto loans are affected by crypto’s volatility. 

If the price of the Bitcoin you gave as collateral drops too much, the BTC loan site might have to sell it to cover the loan. 

If you’re afraid of your crypto collateral being liquidated due to price drops, then it’s best to put a large amount in as collateral so the price has room to go up and down.

The best Bitcoin loan sites have one thing in common: the steps to register and start borrowing Bitcoin.

1. Register on the site.
2. Complete KYC. 
3. Deposit the collaterals of your choice. 
4. Select terms (interest rate, length of time to repay, etc)
5. Withdraw your loan in the form you selected, whether that’s cash or crypto.

Repayment is equally as simple.

1. Transfer the amount of cash or crypto to repay your loan and fees.
2. Withdraw your collateral or start a new loan.

It ultimately comes down to one question: 

Are you ready to use your crypto as collateral for a loan or not?

There are pros and cons to this, and I hope this article has helped you think about them. 

No matter how you answer, the best Bitcoin loan sites are blazing a new path for personal finance and banking. 

Bitcoin and cryptocurrencies are throwing open the doors to financial choice and freedom. If you want to borrow Bitcoin instantly (or various other cryptocurrencies), it’s never been easier.

I hope you now know where to get a Bitcoin loan that suits your needs!

More Awesome Resources:

• The 5 Best Crypto Lending Sites to Earn Interest in Crypto
• The 11 Best Cryptocurrencies to Buy
• The Ultimate 17 Best Crypto Tools Checklist
• The 6 Best Bitcoin Cards

Who can get a Bitcoin loan?

Anyone who has Bitcoin or cryptocurrencies to put as collateral. 

The best Bitcoin loan sites do not require credit checks nor need you to fill out long applications, wait days for an answer, or worry about getting rejected. 

All you need to qualify for an instant Bitcoin loan is enough cryptocurrency to deposit as collateral. 

Then, at the end of the term, you will have to repay the loan to get your crypto collateral back. 

Can I get a Bitcoin loan fast without collateral?

No. You will need to use collateral to secure the loan. 

Without collateral, there’s nothing to secure the loan against default. 

Can I get an instant crypto loan while staying anonymous?

No. The best Bitcoin loan sites all require you to register and submit KYC documents. 

This is because these sites are all registered financial service companies. 

In order to offer financial services, they are required by law to know their customers to prevent money laundering and other nefarious activities. 

What if I miss my Bitcoin loan payments?

It depends. Each crypto loan site has different policies. 

Some of them charge a late fee for one or two payments before selling your collateralized crypto; others will put your crypto up for sale right away. 

Some sites don’t even have monthly payments; you just need to pay off the interest when you pay off the whole loan. 

What happens to my crypto if prices drop?

It may be sold. 

All crypto loan sites require a certain loan-to-value in collateral. 

For example, if you want to borrow $1,000 and are required to deposit a 50% LTV, then you need to deposit crypto worth $2,000. 

Now, if the price of that crypto drops by 50% or more, the loan site will be forced to sell your collateralized crypto to protect lenders from losing money. 

How fast can I get my BTC loan after applying?

Sometimes in 90 minutes or less what makes a Bitcoin loan instant compared to a regular loan. 

If you choose to get your loan in a stablecoin, then most of the best Bitcoin loan websites will deposit your loan amount into your wallet very soon after you submit your loan request. 

If you choose to get your loan in fiat currency, you will receive your loan amount in the time it normally takes to process a standard fiat transaction. 

Do I need to repay my loan with the same funds as I took out?

Not necessarily.

The best Bitcoin loan sites accept payment in various forms. 

If you took out a loan and got stablecoins, you might be able to repay in fiat.