Crypto loans offer a smart way to unlock money without selling your digital assets. If you’re looking to use your Bitcoin or Ethereum as collateral while still holding onto your investment, this guide will help you compare the best crypto loan platforms available in the UK right now. It includes interest rates, platform features, pros and cons, and tips from industry experts to help you make informed decisions.
What Is a Crypto Loan?
A crypto loan lets you borrow money by using your cryptocurrency as collateral instead of traditional assets like real estate or bank savings. You deposit your crypto—such as Bitcoin or Ethereum—into the platform, and in return, you get access to cash or stablecoins without needing to sell your holdings.
This setup is perfect for people who believe in the long-term value of their crypto and want to keep it while still meeting short-term financial needs.
👉 Related Reading: What are Bitcoin Loans? And How Do They Work?
Top Crypto Loan Platforms in the UK (2025)
Here are the best crypto loan platforms available to users in the UK this year. The platforms listed below differ in terms of supported cryptocurrencies, interest rates, and user experience. Note that interest rates are subject to change depending on market conditions and risk models used by the platforms.
1. Ledn
Ledn is one of the most trusted crypto lending platforms for UK users. It offers secure loans backed by strong risk management and transparent operations. One standout feature is the B2X loan, which allows you to increase your Bitcoin holdings using your existing assets as collateral.
- Bitcoin Loan Interest Rate: 12% APR
- Pros: Offers B2X loans to double Bitcoin; high security and transparency
- Cons: Supports fewer cryptocurrencies compared to other platforms
Ledn has never halted withdrawals, even during market crashes like in 2022, which boosts user confidence.
2. Nexo
Nexo gives you instant access to crypto-backed loans with zero credit checks. The platform supports over 40 cryptocurrencies and offers some of the best interest rates—especially if you hold Nexo tokens.
- Bitcoin Loan Interest Rate: From 0% APR (depending on NEXO token holdings)
- Pros: Supports a large variety of crypto assets; flexible loan terms
- Cons: Being a centralized platform introduces some risk
Nexo’s mobile and web interfaces are also easy to use, making it a good fit for beginners.
3. YouHodler
YouHodler is popular for its wide crypto support (over 50 coins) and high Loan-to-Value (LTV) ratios, sometimes up to 90%. This means you can borrow more against your crypto than on most platforms.
- Bitcoin Loan Interest Rate: Starting from 12% APR
- Pros: High LTV; large variety of accepted cryptocurrencies
- Cons: Previously experienced a data breach
Despite its past security incident, YouHodler remains a top option for aggressive borrowers needing high LTVs.
4. Hodlnaut
Hodlnaut started as a savings platform but later added crypto loan services. It offers simple loan terms and decent rates, making it a solid choice for casual users.
- Bitcoin Loan Interest Rate: Around 6.2% APR
- Pros: Easy-to-use interface; reliable service
- Cons: Limited coin support restricts borrowing options
Hodlnaut may be a good option for those who want straightforward borrowing without technical complexity.
5. Aave
Aave is one of the most respected DeFi (Decentralized Finance) platforms, offering crypto loans via smart contracts. It’s perfect for users who prefer decentralized solutions and want to avoid centralized risks.
- Bitcoin Loan Interest Rate: Variable, usually around 4% APR
- Pros: Transparent and secure DeFi platform; offers flash loans
- Cons: Requires active loan monitoring; more suitable for experienced users
As a decentralized platform, Aave offers more control but also demands more from the borrower.
6. Alchemix
Alchemix introduces a new concept—self-repaying loans. Instead of paying interest directly, your crypto collateral earns yield through DeFi protocols, and that income is used to repay the loan automatically.
- Bitcoin Loan Interest Rate: No fixed rate; loans are paid via earned yield
- Pros: No risk of liquidation; passive repayment
- Cons: Limited to certain coins; depends heavily on external yield protocols
Alchemix suits long-term holders who are patient and willing to experiment with newer models.
7. Compound
Compound is another DeFi lending platform available to UK users. It offers flexible borrowing without minimum requirements, ideal for users looking for smaller loans.
- Bitcoin Loan Interest Rate: Typically around 4%, but fluctuates
- Pros: No minimum loan amount; interest rates are often low
- Cons: Interface and process can be complex for beginners
It’s best suited for tech-savvy users comfortable with managing their own wallets.
Crypto Loans vs Traditional Loans: Key Differences
| Feature | Crypto Loans | Traditional Loans |
|---|---|---|
| Collateral | Digital assets like Bitcoin or Ethereum | Physical assets or income |
| Credit Checks | Usually not required | Almost always required |
| Approval Speed | Within hours | Days to weeks |
| Interest Rates | Vary widely by platform and asset | Generally fixed or based on credit score |
👉 Read More: Crypto Loans vs Traditional Loans
Interest Rates for Crypto Loans in the UK
Rates vary widely depending on the platform, collateral type, and loan size. Some platforms offer rates as low as 4.5%, especially for high-value loans or those backed by large amounts of stable coins. Others may charge over 12% APR for smaller or riskier loans.
It’s essential to compare multiple platforms, read their terms carefully, and understand how their risk model affects the rate you’ll receive.
Expert Advice: 4 Key Things to Consider When Choosing a Crypto Loan Platform
Mauricio Di Bartolomeo, co-founder and CSO at Ledn, offers the following advice for borrowers in the UK:
- Survived the 2022 Crypto Crash
Choose platforms that remained operational and transparent during major market crashes. If they didn’t pause withdrawals or suffer losses during the FTX-Alameda collapse, it’s a good sign of strength. - Proof of Reserves
Always verify that the platform publishes Proof of Reserves. This ensures that they have enough funds to back customer deposits. - Avoid Token-Backed Risks
Some platforms issue their own tokens to offer rewards or discounts. While this may look attractive, it adds complexity and risk. Choose simpler, safer options. - FCA Registration
Make sure the platform is registered with the UK’s Financial Conduct Authority (FCA). This provides a higher level of protection for your assets.
Risks of Taking a Crypto Loan
Crypto loans carry unique risks. If the value of your crypto drops suddenly, you might face a margin call—a demand for more collateral. If you can’t respond in time, your assets could be liquidated.
Other risks include platform failures, especially if they’re unregulated or lack transparency.
Alternatives to Crypto Loans
If you’re unsure about using your crypto as collateral, you might consider:
- Traditional bank loans for lower interest rates and predictable terms
- Selling a portion of your crypto if you believe prices may drop
- Ledn’s B2X loan product for increasing exposure to Bitcoin while gaining liquidity
Who Can Qualify for a Crypto Loan in the UK?
Eligibility varies by platform, but you typically need:
- Supported cryptocurrencies (Bitcoin, Ethereum, etc.)
- Sufficient collateral to meet the loan-to-value requirements
- Optional credit check (some platforms don’t require any)
- Strong financial standing for flexible repayment terms
Holding well-known coins increases your chances of approval, while having a poor financial profile may require extra collateral.
Is a Crypto Loan Right for You?
If you need short-term cash but don’t want to sell your crypto, a crypto loan can offer a flexible and fast option. However, if you’re unsure about price volatility or can’t afford to risk losing your collateral, you may want to look into more stable, traditional loan alternatives.
Conclusion
Crypto loans provide an efficient and innovative way to access funds while holding onto your crypto investments. Platforms like Ledn, Nexo, and YouHodler offer tailored services to UK users with a mix of centralised and decentralised features. Always compare rates, check FCA registration, and understand the risks before borrowing.
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