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Best Bitcoin Lending Sites

best bitcoin lending sites

Searching for Bitcoin lending options as a borrower or as a lender?

You have a lot of options.

Unfortunately, cryptocurrency is full of scams and unscrupulous individuals, so it’s of the utmost importance that you find a trustworthy cryptocurrency site.

And that’s where we can help. We’ve already done the hard work of finding and reviewing trustworthy Bitcoin lending sites. Here are the best ones for both lenders and borrowers. 

Nexo

In our opinion, Nexo is the best Bitcoin lending site. Why?

It’s the most secure lending site in the industry and has a few other strong points. Some of which include the following. 

First, it was founded by Michael Arrington of TechCrunch fame, so it has a big name behind it. It’s not a fly-by-night operation.

Next, the interest rate for lenders is fairly high. You can earn up to 5% interest on Bitcoin loans as a lender. And this interest is paid out daily, so you don’t have to wait a year for the money to hit your account.

Finally, you can earn money on fiat currency loans. In fact, the interest on fiat currency loans pays a little higher at 10%. 

Positives

  • Secure website with $100 million in insurance for deposits.
  • 5% interest rate if using stablecoins. The interest is paid daily.
  • Low minimum loan of $500.
  • Easy approval process.

Negatives

  • The interest rate is 5.9% APR as a borrower.

Verdict

We like Nexo – it’s our top pick for Bitcoin lending. Nexo is especially great for beginners that may be unfamiliar with the Bitcoin lending process.

CoinLoan

CoinLoan is another Bitcoin lending app, but with more of a twist than Nexo. What’s the twist?

CoinLoan is peer-to-peer. This means the lender and borrower make their own terms for the loan. 

Lenders have the option of requiring up to 70% LTV as collateral on the loan, which is a huge positive. If the borrower defaults on the loan, then you still get 70% of the value back. 

Positives 

  • P2P loans.
  • Up to 70% LTV on loans.
  • Set your own interest rates and payment terms.
  • CoinLoan has longevity on its side – it was the first site to offer P2P cryptocurrency loans.

Negatives

  • Not many users.

Verdict

All things considered, CoinLoan is a great Bitcoin lending platform. It’s especially great if you’re a fan of P2P lending. It does suffer from a lack of lenders, but you can usually find someone willing to lend you Bitcoin. 

The interest fees obviously vary based on the lender. However, they tend to be lower than Nexo. 

BtcPop

BtcPop takes a slightly different approach to P2P lending than other platforms. It’s based mostly on community.

You have to earn trust in the community to receive the best loan rates, which we like as a lender.

As you can imagine, trust is huge when approving a P2P loan. And it’s especially important with BtcPop because they do not run credit scores on borrowers – it’s all based on community reputation. 

Unfortunately, scammers have used this trust based system to pull scams. BtcPop has put measures in place to mitigate the scams, but they do occur from time to time. 

The interest rates vary depending on the amount of collateral and trust you have earned on the platform. You can expect interest rates in the 10%-45% rate depending on the collateral and your trust. 

The more collateral and more trust you have as a borrower; the closer to 10% your interest rate will be on your loan.

Positives 

  • It’s a 100% Bitcoin P2P lending platform.
  • Reputation plays a huge part in this platform (lender advantage).
  • No credit check.
  • Deposit Bitcoin instantly.
  • No reliance on fiat currency.
  • Easy registration.

Negatives

  • Reputation can be hard to earn (borrower).
  • Requires registration to view full loan details.
  • Scammers can abuse the reputation system.

Verdict

Overall, we really like BtcPop. It has a few flaws inherent to a pure P2P lending platform. However, we can’t knock BtcPop for those flaws as all P2P platforms have the same issues. 

If you want a purely P2P bitcoin lending option, then BtcPop is the platform for you.

xCoins

Do you like using PayPal or your credit card to purchase Bitcoin?

You’ll love xCoins if you do because they allow you to purchase Bitcoin with PayPal or your credit card.

This review isn’t about purchasing Bitcoin, though. As far as loans, xCoins offers a nice platform. It’s not too difficult to use: you purchase Bitcoin, make a listing, and wait for borrowers. 

You get to set the interest rate and payment terms. And it’s just as easy on the borrower side.

Unfortunately, xCoins does have a few problems. The main problem being that PayPal and credit cards will often freeze accounts when they see xCoins on the statement. 

Fees can also be a bit of a problem with xCoins. It’s beyond the scope of this article to list all the fees, but they can get out of hand if you aren’t paying attention.

Positives 

  • PayPal compatible.
  • Easy to register an account.
  • Quick and easy verification process.
  • Low minimum requirement of $20.

Negatives

  • Your PayPal account can get permanently frozen.
  • High fees.
  • The site can be confusing to use.

Verdict

We really like xCoins if you only have access to a PayPal account. However, if you don’t need to use PayPal, then you have better options available to you. 

The fees, risk of your PayPal getting frozen, and buggy website are just too many problems for a service that BtcPop offers at a better rate.

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