3 Best Crypto Loaning Platforms in Australia (May 2022)

May 5, 2022
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As a long-time crypto aficionado, I constantly keep up with the latest and greatest crypto exchanges coming out every day, always looking for the lowest fees and best features. I’m confident these recommendations are currently the best crypto loaning platforms available in Australia.

Overall, our top pick for the best crypto loaning platform is BlockFi. It offers up to a 50% FLT ratio, supports Bitcoin, Ethereum, and Litecoin, and approves loans in less than 24 hours. It doesn’t charge prepayment or late fees, and the loan can be repaid partially or in full in the 12 months.

1. BlockFi

Based in New York, BlockFi is a crypto exchange and crypto lending platform that was launched in 2020. BlockFi’s goal is to provide crypto investors access to a low-interest, no-credit-check lending platform. Currently, it only supports BTC, ETH, or LTC collaterals.

BlockFi uses a collateralized lending system, coupled with a 50% Loan-to-Value (LTV) ratio limit. That means you need to deposit at least twice the amount you are borrowing, as collateral. Currently, BlockFi users can loan USDT or USD, and they’re looking to add more options in the near future. 

This lending system is ideal for crypto investors who don’t want to lose their position on a certain crypto asset – they can request a loan and still keep their position. Keep in mind that your LTV ratio might fluctuate; if it rises above 70% you will have to deposit more collateral or risk BlockFi liquidating your position.

Features

  • Borrow up to 50% of the value of your collateral
  • Supports 3 cryptocurrencies as collateral
  • No prepayment penalty fees
  • App available on mobile
  • Same-Day loans
  • Repay loan partially or in full within 12 months

Cost & Interest Rates

Loan-To-Value (LTV)Interest RateOrigination Fee
50%9.75%2%
35%7.9%2%
20%4.5%2%

Signup Bonus

$15-$250 bonus when you sign up using this link.

Best For

Investors looking for a collateralized lending platform that supports the biggest cryptocurrencies.

2. Nexo

Launched in 2018, Nexo is a crypto exchange and crypto lending platform based in Zug, Switzerland. Supports 40 cryptocurrencies as collateral, including Bitcoin (BTC), Ethereum, (ETH), and Polkadot (DOT), and users can choose from 45+ fiat currencies and stablecoins to borrow in.

Like most other crypto lending platforms, Nexo loans are linked to the Loan-to-Value (LTV) ratio of the collateral; if you use stablecoins as collateral the LTV can go as high as 90%. Nexo interest rates are determined using a tiered system based on how many NEXO tokens you’re holding, and it ranges from 13.9% to 6.9% per year, or even lower (refer to the Cost & Interest Rates section).

Nexo doesn’t charge origination or prepayment penalty fees and is audited regularly by Armanino and is insured for up to $275 million thanks to its partnership with BitGo, Ledger, and Bakkt. 

Features

  • Borrow from $50 to $2 million
  • No origination fee
  • Insured for up to $275 million
  • Supports 40 currencies as collateral
  • Supports 45+ fiat currencies and stablecoins
  • No prepayment penalty fees
  • Same-Day loans

Cost & Interest Rates

TiersPercentage of NEXO holdingsInterest Rate
Base0%13.9%
Silver1%12.9%
Gold5%8.9% (if LTV >20%); 1.9% (if LTV <20%)
Platinum10%6.9% (if LTV >20%); 0% (if LTV <20%)

Signup Bonus

$25 worth of BTC bonus when you sign up using this link.

Best For

Investors looking for the lowest interest rates and a large coin offering.

3. Crypto.com

Crypto.com is a crypto exchange and DeFi crypto-services provider. Its lending platform uses a collateralized, Loan-to-Value (LTV) system for loans, and supports 8 different cryptocurrencies as collateral, including CRO, LTC, BTC and ETH. Users can borrow USDT, USDC, BTC, and ETH. 

Interest rates range from 2% to 8%, based on the LTV, and all loans have a length of 12 months. Loans can be paid before the cutoff day, but a full day of interest will be charged as a penalty. If you’re unable to repay the loan before the expiry time, your collateral will be liquidated to pay the loan.

To incentivize people to hold their native currency CRO, Crypto.com offers a very significant discount: interest rates drop between 1% and 6% if you’re holding more than 100,000 CRO tokens. Crypto.com’s LTV system means you can borrow as much as half the amount you have in collateral. 

Features

  • Borrow up to 50% of the value of your collateral
  • Supports 8 cryptocurrencies as collateral
  • Reduced rates for CRO holders
  • App available on mobile
  • Instant loans

Cost & Interest Rates

Loan-To-Value (LTV)Interest Rate (CRO Stake <100K)Interest Rate (CRO Stake >100K)
25%2%1%
35%6%4%
50%8%6%

Signup Bonus

$15-$250 bonus when you sign up using this link.

Best For

Investors looking for a very complete crypto platform and low-interest rates.

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What To Look For In The Best Crypto Loaning Platforms In Australia

There are a number of factors to consider when selecting the top crypto exchange in Australia. Some of these include:

Supported coins: The best exchanges will offer a wide range of coins to trade, as this gives investors the opportunity to maximise their profits by trading a variety of assets.

User interface: The user interface should be simple to understand and easy to navigate, especially for beginners. However, if you are a more seasoned crypto investor, you may want to look for an exchange with more advanced features.

Fees: All exchanges will charge a fee for their services, but it is important to find an exchange that offers competitive rates. Otherwise, you may end up losing a significant portion of your profits in fees.

Regulation: One of the most important factors to consider when choosing an exchange is its level of regulation. A regulated exchange will be much safer and more trustworthy than an unregulated one.

Deposit & withdrawal options: Another important factor to consider is the availability of deposit and withdrawal options. Ideally, an exchange should offer a variety of payment methods so that investors can easily transfer funds in and out of their accounts.

Account security: It is crucial that an exchange has robust security measures in place to protect its customers’ funds. Look for exchanges that have implemented multiple layers of security, such as two-factor authentication and cold storage.

Customer support: The best exchanges always have excellent support so users can get help if they run into any problems. Consider how many channels you can use to reach their support team, their response times, and how helpful their responses are.

FAQs

Is It Legal To Buy And Trade Crypto In Australia?

Yes, cryptocurrency is legal in Australia, and you can buy, sell and use crypto without breaking the law. However, cryptocurrency is not currently considered legal tender in Australia, and the Australian government shows no indication of accepting it as such any time soon.

Is Crypto Trading Taxable In Australia?

Yes. Even though the Australian Tax Office (ATO) doesn’t consider crypto as money, it is regarded as property, a CGT asset for all tax purposes. When a capital gain or loss is realized from cryptocurrency, the market value of the asset, in AUD, is used to calculate the tax. 

Are Crypto Loaning Platforms Regulated In Australia?

Yes. In Australia, cryptocurrency, digital currencies, and cryptocurrency exchanges are legal. The sale of crypto assets is regulated by Australia’s Financial Services Regulatory Regime.

Conclusion

As a long-time crypto aficionado, I constantly keep up with the latest and greatest crypto exchanges coming out every day, always looking for the lowest fees and best features. I’m confident these recommendations are currently the best exchanges available in Australia. 

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