3 Best Crypto Loaning Platforms in Australia

Here’s something you may not realize: the crypto-loaning platform you choose matters. Your choice will impact how profitable your trades are, and can be the difference between making a good investment – and making a huge profit -, and missing out on opportunities and losing money because the interests are too high or the term of the loan won't allow you to pay out early.

So if you’re looking for a safe and secure Australian loaning platform that’s easy to use and won't leave you stranded, you’ve come to the right place. I’ve been investing in crypto for over 8 years now, and I make tweaks to the list below almost every day.

Without further ado here's my list of the best crypto loaning platforms Australia has to offer.

What Is The Best Crypto Loans Platform In Australia?

1. 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

Signup Bonus

$15-$250 signup bonus

Best For

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

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

Signup Bonus

$25 signup bonus

Best For

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

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

The most important factors to consider when searching for the best Crypto Loaning Platform in Australia are:

• Interest rates: The first thing you should look at when choosing a loaning platform are its interest rates. It can be the difference between gaining some liquidity on your crypto positions to invest somewhere else and make a profit and simply losing money.
• Loan-to-Value Ratio (LTV): The LTV is a percentage, and it represents the limit of how much you can request on a loan, based on the total value of your collateral. Higher LTV limits mean you can ask for more money from the same collateral, but it usually comes with considerably higher interest rates. 
• Choose the right crypto: Most loaning platforms offer wildly different interest rates depending on the crypto you use as collateral. The more volatile the cryptocurrency, the higher the interest rates tend to be. Keep that in mind when choosing your collateral.
• Avoid liquidation: No matter the platform you choose, one common denominator is the LTV limit. The value of your crypto collateral will fluctuate – that’s what crypto does -, and with it so will your LTV. If the value of your collateral raises, your LTV will naturally decrease and you may qualify for a lower interest rate. On the other hand, if your assets lose value, your LTV will increase, and, if it goes over the limit set by the platform they will start liquidating your collateral to pay off part of the loan. You will need to make regular deposits to keep a healthy LTV ratio.
• Choose the right platform: Both platforms listed on this post are very secure and completely safe to use – we did all the legwork, so you don't have to. In general, it’s a good idea to check the history of a potential loaning platform to get a better feel of how legit it is. Check online reviews and what users have to say about it.
• Loan terms: Most platforms on this list offer flexible terms, meaning you can pay your loan early – with no penalties – or go over it and simply pay the difference. Make sure to check whether that particular platform has fixed or flexible terms.

In Summary

As a long-time crypto aficionado, I keep up with the latest and greatest crypto loaning platforms, always looking for the lowest fees and best features. As a long-time crypto investor, I’m confident these recommendations are currently the best loaning platforms available for Aussies.

Overall, our top pick for the best crypto loaning platform is Crypto.com – 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 loans can be extended at no additional cost; for those reasons we can't recommend Crypto.com enough.

Best Crypto Loans Australia 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.

When it comes to choosing the best crypto exchange in Australia, some of the best choices are ZenGo, VirgoCX, Binance and Coinbase, but the first two are by far better than the latter for Australians.

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, cryptocurrency, digital currencies, and cryptocurrency loaning platforms are legal and well-regulated in Australia. The loan of crypto assets is regulated by Australia's Financial Services Regulatory Regime.