This resource is for lending your crypto for interest. If you would like to borrow crypto instead, check out our ultimate guide on Crypto loans
LLohe 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 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.
Now, let’s compare my favorite crypto lending platforms. You’ll also see how to earn interest on crypto 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.
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 ETH for lenders, 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 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 lending sites and other cryptocurrency websites 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.
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 YouHodlerYouHodler is a relative newcomer, but it’s a strong competitor. With YouHodler, you can loan out your bags and earn interest on your 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.
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 platform on which you can earn interest on BNB.
Multi-Hodl. A unique offering letting lenders earn interest from 80% of their portfolio while using 20% of their portfolio to buy and sell other cryptocurrencies.
BTC 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 lending option for themselves.
Cons:
Lacks experience. Young platform without a proven track record.
Compliance. Strict KYC/AML laws .
Modest stablecoin APR. Other 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.
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 CoinloanCoinloan 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.
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 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 BTCPOPBTCPOP 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.”
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 XcoinsXcoins 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 platform, so lenders set their own rates and borrowers choose to take them or not.
Pros:
Low minimum deposit. Lenders can deposit as little as $20 in BTC and start earning interest.
Fixed terms. Lenders 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 could be a plus for some people. 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.