There are currently plenty of exciting opportunities in crypto. Popular crypto exchanges allow you to diversify your portfolio with digital assets. In addition, you can use various lending platforms to earn passive income from your crypto and even take out loans.
CoinLoan is an all-in-one platform that allows you to earn, borrow and trade crypto. If you want to manage your digital assets in a single ecosystem, CoinLoan allows you to do just that.
But how does CoinLoan compare to its competitors, and is this crypto trading and lending platform worth using? Our CoinLoan review covers all the features, prices, and pros and cons to help you make the right choice.
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Crypto Savings and Loan Platform
What is CoinLoan?
CoinLoan is a crypto lending company that was founded in 2017. The company operates out of Tallinn, Estonia, and was founded by Alex Faliushin.
According to its website, CoinLoan’s goal is to provide better access to financial services such as loans to borrowers and lenders. It also simplifies life for crypto fans who want all their trading and lending tools on one platform.
What does it offer?
CoinLoan has three main functions: earn, borrow and trade. This makes CoinLoan extremely versatile. Additionally, if you currently use multiple crypto exchanges and savings accounts, switching to CoinLoan can help keep things simple.
Crypto Interest Account
There are countless crypto interest accounts on the market today and CoinLoan also offers an interest account. Opening an account is free and you can deposit various cryptocurrencies and fiat to earn daily interest.
CoinLoan currently supports more than 20 assets for its interest account, including popular cryptos such as Bitcoin and Cardano. But you can also deposit Euros, British Pounds and USD Coin (USDC) to earn interest.
Most assets currently pay 7.2% APY, which is much higher than you’ll ever find with a regular high-interest savings account. Here’s how CoinLoan’s interest rates break down for some of the most popular backed assets.
Maximum Interest Rate (APY)
Interest is accrued in kind, which means that you earn Cardano when you deposit Cardano. The minimum deposit period is one day and there is no maximum.
Keep in mind that you also need to buy and wager CoinLoan tokens (CLT) if you want to earn the maximum interest on each asset.
CLT is the platform’s original token and you buy it directly through CoinLoan’s platform. Strike CLT does not pay you interest directly, but it increases the interest rates for other assets in your crypto interest account. Here’s how CLT stakeout levels work:
125 CLT: Increases the interest rate by 0.1%375 CLT: Increases the interest rate by 0.3%1,000 CLT: Increases the interest rate by 0.8%1250 CLT: Increases the interest rate by 1%2,500 CLT: Increases interest by 2%
CLT currently costs about $30, so you spend at least $3,750 to earn slightly higher interest rates. Ultimately, this means that CoinLoan’s interest rates are slightly lower than you would expect for most users.
But even earning a base rate of 5.2% APY on most cryptos or 10.3% on fiat is much better than leaving your unused assets idly on the sidelines.
Also keep in mind that the minimum deposit requirements vary depending on the asset. For example, you must deposit at least 0.005 BTC or 25 euros to fund your account.
Crypto Backed Loans
One of the main benefits of using crypto to take out loans is that you don’t have to sell your cryptocurrencies to get cash. Moreover, you don’t have to worry about credit scores or strict borrower requirements to take out loans because crypto loans are too much collateral; if you have crypto, you can use it as a borrower.
To use CoinLoan to take out a loan, start by depositing collateral. You can deposit cryptocurrencies that the platform supports, such as Bitcoin and Ethereum. From there, enter your loan amount, the asset you’re borrowing, the loan period, and your loan-to-value (LTV) ratio.
The minimum loan period is one month, but you can choose a maximum of 36 months. LTV ratios include 20%, 35%, 50% and 70%, and a lower LTV means you need less collateral to take out loans, although this increases your interest rate.
But even with interest and loan making fees, CoinLoan can be quite affordable for borrowers. For example, if you need a loan of 1,000 euros quickly, you can deposit 0.138 Bitcoin if you have BTC in your portfolio and take out this loan for a total borrowing cost of 1,059.5 euros.
And again, you can adjust the LTV ratio so that you have to deposit much less BTC to take out loans. Overall, this helps borrowers access fiat and crypto faster without having to file paperwork and deal with strict lenders.
You can also repay loans whenever you want. Please note that you cannot use cryptocurrency from your interest account as collateral to take out loans. However, you can withdraw crypto from an interest account without paying any fees and then use it to borrow.
It is also worth noting that you will get a 50% discount if you pay loan fees with CLT tokens.
Buying and Selling Crypto
The main reason to use CoinLoan is to earn passive income from your crypto or to take out loans. But the platform makes it easier for you to move digital assets through CoinLoan Trade.
CoinLoan trading allows you to make crypto-to-fiat and crypto-to-crypto trades. You start by depositing fiat, cryptos or stablecoins into your CoinLoan wallet. From there, you can buy any assets that CoinLoan supports.
You can deposit Euros, Pounds Sterling, USDC or other cryptos and stablecoins you own into another crypto wallet and use it to trade on CoinLoan. CoinLoan also supports several payment methods, including:
SEPA (for Euro and Eurozone citizens)Visa and MastercardSWIFTAdvCash (available for all currencies, but not available in the US)
Once you enter your trading pair, CoinLoan displays the current exchange rate and exactly how much of a particular asset you are buying. If you ever want to withdraw assets, you don’t pay any withdrawal fees either.
Overall, CoinLoan supports far fewer assets than exchanges like Coinbase and Binance. But if you use CoinLoan to earn interest or take out loans, it is faster to buy crypto on the platform than through an exchange and then transfer your crypto to your CoinLoan wallet.
CoinLoan has a free app for Android and iOS. The app has the same features as the web version, allowing you to track your interest account, borrow crypto and trade from your smartphone.
A mobile app is not a deal breaker for a crypto lending platform. However, it is a nice feature, especially if you regularly buy crypto and move assets in your interest account.
Are there any costs?
CoinLoan does not charge any withdrawal fees or fees to your interest account. Deposits are also free, so you can just use CoinLoan to earn interest without worrying about fees if that’s your goal.
CoinLoan charges several fees for its lending and trading functions:
Loan Currency: The loan costs amount to 1% of the principal amount of the loan.Liquidation costs: 7% of the liquidated collateral of the loan.
As mentioned, you get a 50% discount if you pay off borrowing costs with CLT tokens.
You also pay network fees when you trade with CoinLoan. However, this is unavoidable, and even exchanges such as Coinbase and Kraken charge this fee as it is the cost of moving assets on the blockchain.
You also pay different transaction fees depending on the payment method you use when using fiat to buy crypto. This varies depending on your bank and country, so always check the exchange rate you get on your order screen before placing a transaction with CoinLoan.
How does CoinLoan compare?
coin loan is a popular player in the crypto loan market. However, more popular competitors like BlockFi and Celsius also allow you to earn interest, take out loans and trade. In addition, depending on the assets you deposit, certain lenders are often superior to others.
Here’s how CoinLoan interest rates compare to BlockFi and Celsius for some popular cryptos and stablecoins:
How do I open an account?
You sign up for CoinLoan by entering your email address and password. After verifying your email with a verification code, complete your customer’s verification (KYC) to unlock all features.
KYC requirements include entering your name, address and phone number. CoinLoan also requires uploading a government-issued ID such as a passport or driver’s license and selfie.
The process takes a few minutes. CoinLoan also operates globally, although it states that some countries are ineligible due to risks and that you need to complete KYC verification to make sure your country is supported.
Is it safe and secure?
Security is an important consideration for any financial service, and this is true for crypto. In addition, when you lend or borrow money, it is even more important that your assets are protected from hacks and possible insolvency.
Fortunately, CoinLoan has numerous protocols in place to increase security. First, CoinLoan uses BitGo as its custodian, which offers $100 million in digital asset insurance. CoinLoan also says: it stores assets in offline, cold storage to reduce the risks of hacks and loss.
As for other security features, CoinLoan customers use two-factor authentication to secure their accounts. There is even a bug bounty program that rewards people for discovering and reporting vulnerabilities in the CoinLoan platform.
Ultimately, it’s still your job to protect your password and devices. And if you’re not using CoinLoan to earn interest or take out loans, you’ll need to move your money into your own crypto wallet like ExodusLedger, or Trezor where you have more control over your private keys.
How do I contact CoinLoan?
There are several ways to contact CoinLoan for customer support. To get started, you can email [email protected] with your questions. CoinLoan also has a Telegram group and Reddit community where members ask questions and share relevant news.
Alternatively, you can call CoinLoan at +372 634 6411 or +1 (657) 220-1706. Overall, CoinLoan’s reviews are quite positive and the company has a 4.5 star rating on trust pilot† Most positive reviews state that the platform is easy to use and CoinLoan’s customer support is timely and helpful.
Is it worth it?
The crypto lending space is crowded amid companies like BlockFi, Celsius, and Hodlnaut. But despite this competition, CoinLoan holds up well as one of the best lending options out there.
If you are willing to buy and wager CLT tokens, the interest rates are definitely very competitive. And even without strike bonuses, CoinLoan has some of the higher interest rates for certain cryptos and fiat. In addition, the borrowing costs are quite low and signing up for CoinLoan is quick and easy.
If you want more asset support, Celsius has a lot more variety. Loan costs are also generally lower on Celsius. But in the end, you can use multiple lending platforms to get the best interest rates and loan terms for specific cryptos.
Crypto Interest and Loan Accounts
Varies based on assets Up to 12.3% APY
Cryptocurrency and Fiat Deposits
CoinLoan partners with BitGo to provide insurance for digital assets
CoinLoan keeps most of the assets in cold storage. It also requires KYC authentication and you can enable two-factor authentication.
Web/Desktop Account Access