10 Best Crypto Lending Platforms With the Best Rates in 2023

Every crypto investor with sizable amounts in their wallet should consider earning interest on their assets by putting them on cryptocurrency lending sites. Platforms such as these act as intermediaries between lenders and borrowers. 

This article offers comprehensive reviews of the top ten crypto lending platforms we’ve found. Read to learn what each offers, how crypto lending works, its benefits, and more. 

Reviewing Crypto Lending Platforms

Now that you’ve seen our top ten choices, it’s time to delve into detailed reviews for each one. In the following sections, we’ll cover their main benefits and core data, like annual percentage yields, supported cryptocurrencies, etc. 

1. Nexo — Overall Best Crypto Lending Platform With the Best Rates in 2023

Nexo is among the most popular crypto lending sites and our first choice for several reasons. To begin with, it offers interest rates as high as 11% on most coins. On other sites, like Axie Infinity, one of the best play-to-earn games with actual rewards, they can get up to 36%.

Second, each asset gets different returns. More established coins like Bitcoin and Ethereum have lower rates, while stablecoins and less popular tokens have higher rates. Third, every coin has a default interest rate, the FLEX term, and an added rate that depends on your chosen lock-up period. 

There’s also a difference between loyalty tiers. The Base tier offers up to 12% on crypto and 8% on stablecoins, while the highest, Platinum tier, gets up to 15% and 12%. Tiers are based on the percentage of NEXO tokens (the platform’s native token) in your portfolio balance. The higher the percentage, the higher the tier. 

For instance, you get 4% on Bitcoin if you choose the Base tier. FLEX terms are 3%, and the added rate is 1% if you lock your assets for one month. Meanwhile, you get up to 7% APY if you’re in the Platinum tier. Polygon, one of the top cryptos you can buy today, according to Reddit, has similar rates.

Even though many other lending platforms like Celsius paused withdrawals in the mid of 2022 due to extreme market conditions, Nexo continued to operate and allowed users to withdraw most of their assets at any time, unless they were in the middle of a lock-in period.

2. Aqru — Top Choice for Daily Interest with high-security features and multi-layered deposit insurance

Aqru is a Bulgarian crypto platform that’s also registered in England and Wales. The site allows users to invest in crypto, exchange crypto coins, and lend cryptocurrency. 

It’s highly secure as it offers multi-layered deposit insurance to protect your funds from hackers. Aqru uses bank-level security features through wallet infrastructure provided by Fireblocks, a company using the latest Multi-Seg technology. 

Once you open an account and invest, you can get up to 10% APY interest. This interest is paid daily, so you can start benefiting immediately after joining. However, remember that most crypto products have lower APYs, usually around 2% and 3%.

You start by depositing with a credit card, crypto, or bank transfer (no fees on the last two). You can then begin earning interest on any asset, with daily APYs on most coins as high as 3%. After that, you can request a withdrawal as early as 24 hours later without paying any fees. 

3. CoinRabbit — Simplest Cryptocurrency Lending Platform

CoinRabbit is more attuned to borrowers, as it offers more than 150 currencies and 12% APRs or more. That said, crypto investors looking to make some passive income are not overlooked. They have five coins at their disposal (USDT, USDC, USD Coin, BSC, and Binance USD), all offering 5% APY.

You can start with $100, and interest will accrue daily. You can withdraw all or part of your assets for free at any time.

As for security, the platform employs a system of cold wallets that are not used in internal operations. Only specific employees receive access, and every transaction needs approval from several core team members. Suspicious or inaccurate transactions are immediately suspended. 

Using CoinRabbit as a lender is very simple. Even though you must deposit at least $100, you can verify your account only with a phone number. The platform does its checks in the background through the blockchain. The dashboard you get only features important information that’s easy to understand, which makes it ideal for less experienced investors. 

4. Aave — Top Leading Choice for Advanced Investors

Aave is one of the few crypto lending companies operating fully as a lending and borrowing platform. 

It’s a decentralized liquidity protocol with its own native token, the Aave (AAVE), which ranks as one of the top emerging cryptocurrencies today. 

The company behind the Aave lending protocol was established in Switzerland in 2017. Over the years, the Aave platform has managed to find a place among leading crypto lending and borrowing sites. 

It’s now a big name in the DeFi lending space, allowing users to lend several cryptos, including Ethereum, Polygon, Avalanche, and Harmony. The rates are pretty high on coins like Tether, so you can accrue substantial amounts that you can then spend in many online stores that accept USDT. 

Aside from offering regular cryptocurrency loans, Aave also has uncollateralized flash loans, a service this platform pioneered. As for lending APYs, it’s hard to get an accurate number since the platform uses a complex incentivization protocol. It’s usually between 0% and 3%, with stablecoins enjoying more favorable percentages, as on most platforms. 

5. Nebeus — Popular All-In-One Crypto Platform Offering Staking, Borrowing & Lending

Nebeus is an all-in-one crypto staking platform that allows you to rent your crypto, the site’s name for crypto lending. It’s one of the best crypto lending platforms precisely for the all-in-one service it offers — storing, exchanging, insuring, lending, staking, and borrowing. 

As for crypto renting, Nebeus offers up to 8.2% APY on a wide range of cryptocurrencies, including USDC, USDT, BTC, ETH, DASG, XRP, LTC, and EOS. 

The lending system is a bit confusing as you get four options, each with its own APY or RPY (reward per year). Each one has a specific selection of accepted cryptos and currencies you earn from interest. 

Interest rates go from 3.5% to 8.2%, with the highest percentage offered on USDC and USDT only. Also, each product has a lock-in period and a minimum deposit, while all pay up monthly. 

6. YouHodler — Most Flexible Crypto Lending Site with Up to 15% APY

If flexibility matters to you when it comes to crypto lending protocols, you can’t go wrong with YouHodler. It’s a crypto exchange, a crypto trading site, and a wallet. Moreover, it also lets users borrow and lend cryptocurrencies. 

To earn interest on 30 cryptocurrencies, you need to deposit $100, and you can start accruing interest. Payouts are weekly, and you can add more funds every week if you wish to earn more. You can do this through the platform’s loyalty program, one of the most flexible crypto lending options available. There are no lock-in periods and no special requirements. 

Besides flexibility, the platform offers high rates, typically between 7% and 15%. Due to all of this, YouHodler has quickly become one of the most popular DeFi yield farming platforms. 

7. Compound — Popular Choice for DeFi Lending with no Minimum Deposit

Compound.finance is a DeFi (decentralized finance) lending platform that has been around for quite some time. 

The platform has its own token, COMP, and you can earn interest from it. The site also offers additional coins and tokens, including Ethereum, Uniswap, USD Coin, TrueUSD, and DAI. 

Interest rates vary greatly based on current market dynamics and the platform’s yield farming model but are typically around 1% or less. The tricky part about Compound is that it has a very steep learning curve, making it more suitable for investors who’ve already been a part of the DeFi space or crypto holders eager to learn. 

Thankfully, getting started is quite simple as you’re only required to connect your wallet, with no KYC procedures to worry about. 

8. Crypto.com — Leading Choice for Stablecoin Lending, APYs as high as 12.5%

Crypto.com is one of the most reputable cryptocurrency exchanges in the world and among the best crypto trading apps. It’s also a regulated cryptocurrency lending platform where you can get APYs up to 12.5%. You can lend over 22 cryptocurrencies, including Bitcoin, Ethereum, Tether, USD Coin, Avalanche, Cardano, COSMOS, Polkadot, Solana, and Polygon. 

Crypto.com has a neat calculator that shows you how much you’ll earn annually based on the token and amount staked, term, and lock-up period. For instance, if you want to deposit $5,000 worth of USDT under a 3-month term and you have less than $4,000 in CRO lockup, you can get 3.60% in interest. The calculator shows you’ll make $180 annually with $3.46 in weekly payments. 

Moreover, the interest can rise by 2% if you’re a private member. You become one by having a Frosted Rose Gold, Icy White, or Obsidian card from Crypto.com. 

9. Binance — Established Brand With Competitive Rates & Flexible Lock-In Periods

Binance has become a household name when it comes to cryptocurrency exchanges. While it does offer additional services, it’s still among the best crypto lending platforms on the web. 

This site’s reputation as one of the best crypto exchanges on the market comes from the fact that you can lend over 180 cryptos and gain highly competitive APYs. Binance offers double-digit rates on specific less-known tokens and on established cryptos like Polkadot. 

Plus, it has its own coin called BNB, consistently ranked in the top ten cryptos in the world by market cap. 

The site gives you many lending products and options. The most popular are Simple Earn and Auto-Invest, the latter allowing you to set up an automatic investment plan with daily earnings. 

As Binance offers many cryptocurrencies for lending, you can search for specific ones or let the app suggest the newest, most popular, best for beginners, and more. 

10. CoinLoan — Trusted Provider for Fixed Accounts with 6.2% APY

CoinLoan is a crypto exchange and lending platform with a European Financial License. BitGo safeguards the funds users keep there, with custody provided by Fireblocks, so you know that security is an integral part of the platform’s business model. 

Deposits start at $100, which might be high for some, but thankfully, it’s a minimum amount you’ll find at several other lending crypto platforms, including the ones covered here. 

You can get up to 8.2% APY on fixed accounts or up to 6.2% on flexible ones without a lock-in period. You’ll benefit from a higher rate if you don’t mind locking your assets. CoinLoan lets you pick between 1, 3, 6, 9, and 12 months of lock-in, which is more versatile than on most other sites. 

Unfortunately, the rates are lower if you’re unwilling to use the platform’s native token, the CLT coin. Nevertheless, this is a common occurrence in the industry, even for the top crypto lending platforms.

You can deposit 22+ coins, including BTC, ETH, LTC, BCH, SOL, and DOT. The platform offers the same service to businesses but with added benefits like easy integration via API and 24/7 support. 

Best Crypto Interest Accounts Comparison

In order to make choosing the right crypto lending platform easier for you, here’s a quick overview of the main features of the top crypto lending platforms we’ve reviewed in this guide:

What Is Crypto Lending?

Crypto lending involves transferring your crypto assets to a borrower through a lending platform and receiving regular interest payments. 

The annual percentage yield (APY) varies from platform to platform (some sites give fixed rates while others have rates based on market conditions), and they can be as low as 0% and as high as 20%. Lending APY is largely the same as staking APY available on crypto staking platforms. 

Typically, payments are made daily, weekly, or monthly. In many cases, you also have to lock in your deposited funds in order to receive payments. The lock-in period depends on the platform, but it’s usually between one and six months. 

How Does Crypto Lending Work?

The basics of crypto lending are quite straightforward. One side of the equation is the crypto owner willing to lend out their assets in exchange for regular interest payments.

On the other is the borrower, looking to obtain those funds in exchange for a security deposit, the collateral. Moreover, the borrower has to pay interest rates and, eventually, the whole loan. Finally, the cryptocurrency lending platform facilitates the whole process. 

Lenders need to consider the following aspects:

• Supported cryptocurrencies — Most lending sites feature a couple of cryptocurrencies you can deposit, while the best crypto lending platforms allow you to lend 30 or more. 
• APY — The annual percentage yield is the amount of interest you get for lending your assets. It’s usually different for every coin, and every crypto lending site calculates it differently. 
• Lock-in period — During this time, you need to keep your assets on the platform to keep earning interest. Some sites don’t have it, while others have kept them as low as one and as high as six months. 
• Interest payment frequency — The frequency determines when you’ll receive interest payments. In most cases, you get them daily, weekly, or monthly. 

Borrowers must consider collateral, LTV, APR, and loan terms:

• Collateral — This is the amount the borrower pays to obtain a loan. If they default on it, the collateral is lost. 
• LTV — The loan-to-value ratio defines the maximum percentage the borrower can get based on the collateral given.
• APR —  The annual percentage rate is the percentage of the loan the borrower must pay yearly until they return the loan. 
• Loan terms — You must also consider other terms, like the period after which you must repay the loan.

Crypto Lending Rates Explained

As you’ve seen so far, there are two types of rates in crypto lending — APYs and APRs. The former applies to lenders, and the latter impacts the borrowers. APY determines how much interest the lender will earn annually, while the APR shows how much annual interest the borrower must pay until they repay the whole loan. 

To understand these fully, let’s look at some examples. 

Let’s say the APY is set at 8% while the amount you’ve deposited in USDT is worth $4,000. This means that you’ll receive $320 in USDT every year for as long as you keep the assets on the platform. If the interest is paid weekly, you’ll receive $6.15 in USDT per payment. 

As for APR, consider an example where it is 10%, and the loan you’ve obtained in USDT is also worth $4,000. The amount you need to pay in interest every year is $400. Naturally, if you manage to repay the loan sooner, that amount will be lower. 

Potential Benefits of Crypto Lending

Even though lending cryptocurrency can be a risky investment, it also comes with a good amount of benefits you’ll need to consider. Let’s review them. 

Easy to Get Started

Lending cryptocurrency is much easier than doing so with fiat currency. Moreover, loans are much simpler to obtain in the crypto space than through banks, as there are no credit checks. Both lenders and borrowers can often get started by connecting their wallets without going through KYC/AML checks. 

Regular Payouts

Crypto lenders can get interest rate payments daily. Some platforms send weekly or monthly payments, which is still more frequent than other lending options. 

Double-Digit Interest Rates

APY on many crypto lending products can go above 10%, yielding significant returns to many investors. Even though rates vary from site to site and coin to coin, you have a lot of options. You can always find a better platform, and if you don’t have the coin with the highest rates, you can easily buy it, as exchanging crypto is easy and quick. 

Various Lock-in Periods

Fiat currency savings accounts typically have very long time frames during which you can’t access your funds, sometimes up to a year. Crypto lending is more flexible in this regard as many platforms don’t even have lock-in periods, or they are as short as a month. 

How to Choose a Crypto Lending Platform

When choosing the best crypto lending platform, there are a couple of aspects you need to look into. 

Regulation and Security

The crypto space can be dangerous, at least when you’re using centralized services. That’s why it’s essential to check the security features. You want to see fund insurance and cold storage for your coins by notable providers like Ledger. 

Moreover, to avoid issues with the lending platform itself, make sure it’s properly regulated by valid regulatory bodies in the countries it operates. 

Coin vs. Platform

It’s not always enough to go for the best lending platform. You need to ensure you pick the right site for the right coin. Even if one platform offers better rates overall, another with a lower rate could have a significantly higher APY on the coin you’re looking to deposit. 

Interest Rates

Most lending platforms show the exact APY or interest rates you get on specific coins and lending products. However, there are always caveats like the APY being higher for members with benefits or it only reaching a certain number if you’re unwilling to lock your funds for an extended period. 

We’ve made sure to cover these points in the reviews, but you need to dig deeper as there are always aspects that relate to your specific case. 

Deposit Limits and Fees

Crypto lending platforms tend to have minimum deposit amounts that vary by coin, while others could have no such requirements. The same goes for fees, but bear in mind that we’ve largely focused on sites that don’t charge fees on deposits or commissions on lending. 

Lock-in Period

Many lending products are fixed, meaning they have specific periods during which you need to lock your assets on the platform. There are some products that don’t have these, while others let you choose the lock-in period, often increasing rates for longer lock-in times. 

Conclusion

Crypto lending is a great way for investors to earn passive income by simply depositing and locking their funds for a specific period. Most platforms will provide daily or weekly interest payments, automatically added to the investor’s balance. 

If you’re interested, you can use any site from this list, but we recommend Nexo, the overall best crypto lending platform. It supports over 30 cryptos, daily interest payouts, optional lock-in periods, and low minimum deposits. If you’re ready for the risk that comes with this type of investment, join the site, deposit, and start earning interest. 

References:

https://coinmarketcap.com/currencies/nexo/

https://www.cnbc.com/2022/06/13/crypto-lender-celsius-pauses-withdrawals-bitcoin-slides.html

https://www.fireblocks.com/

https://coinmarketcap.com/currencies/aave/

https://coinmarketcap.com/currencies/compound/

https://www.binance.com/

https://www.bitgo.com/

https://www.coindesk.com/tech/2023/06/07/aave-lending-protocol-moves-closer-to-launching-gho-stablecoin-on-ethereum-mainnet/

https://www.reuters.com/technology/what-crisis-high-stakes-crypto-lending-looks-here-stay-2022-09-21/

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Michael Graw

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Michael Graw

Michael Graw is an experienced writer from Bellingham, Washington who covers finance, crypto, and technology topics for Techopedia. His work has been published on numerous leading publications, such as TechRadar and Tom’s Guide.

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