HODLing Bitcoin is still a viable strategy, but why keep your wealth locked up? In a dynamic Web3 market, crypto loans allow you to borrow against crypto without having to sell, protecting your potential gains. This review ensures that you can safely leverage your Bitcoin by evaluating the crypto loan offerings of five active platforms: CoinRabbit, Nexo, Ledn, MakerDAO, and Aave. For HODLers, we emphasize speed and security using official websites, industry reports, and market updates.

1. CoinRabbit: Instant Crypto Loans for Bitcoin HODLers

Since 2020, CoinRabbit has offered crypto loans, enabling HODLers to unlock liquidity without selling their Bitcoin or any of 300+ supported assets. Funds are available within 15 minutes and require no credit checks. Collateral stays secure in cold wallets with multisignature protection, while loans can reach up to 90% of the asset’s value. With rates starting at 1.33% per month and 24/7 human support, CoinRabbit is the best crypto lending platform that gives everyday users fast and reliable access to liquidity. VIP clients, at the same time, receive special terms and extra protections, including a dedicated account manager.

Why HODLers Choose It:

• No lengthy verification. Fast access to funds without complicated steps.
• Flexible Terms. Fixed term / open-ended loans with no strict deadlines
• Automatic Protections. Tools to help manage liquidation risk
• VIP Support Available. Access to a dedicated account manager, along with special terms and extra protections

Risks:

• Single Collateral Model. Each loan is tied to one type of collateral
• Limited Ecosystem. CoinRabbit doesn’t offer integrated trading features

2. Nexo: Secure Crypto Loans with Real-World Utility

Nexo allows users to take loans using Bitcoin or other cryptocurrencies as collateral, with funds accessible in stablecoins, fiat, or via the Nexo Card with 2% cashback. 

The platform is part of a broader ecosystem that includes earning opportunities on deposited assets, AI-driven management tools, and various loyalty or bonus programs. To fully benefit from these features, users need to actively engage with the platform and participate in the Nexo ecosystem, such as holding NEXO tokens or meeting other program requirements. With a planned U.S. relaunch in 2025, Nexo aims to expand access to its services.

Why HODLers Choose It:

• Insurance Partnerships. Historically advertised coverage through custodial partners
• Versatile Output. Stablecoins, fiat, or card-based spending.
• Ecosystem Perks: Combines loans with high-yield accounts.

Risks:

• KYC Required. Not ideal for privacy-focused HODLers.
• Tiered Benefits. Best rates require NEXO token holdings.

3. Ledn: Reliable Crypto Loans (Bitcoin Only)

Ledn is a CeFi platform specializing in Bitcoin-backed crypto loans, designed for HODLers who want a simple and secure way to access liquidity. Users can borrow USD or stablecoins (USDC) against Bitcoin with loan-to-value (LTV) ratios of up to 75%, allowing them to unlock capital while keeping their long-term exposure to BTC. Funds are held in custody by BitGo, which is SOC2 Type 2 certified and offers cold storage, providing an additional layer of protection against hacks or breaches.

Why HODLers Choose It:

• Bitcoin-Centric. Tailored for HODLers with high BTC LTVs.
• Secure Custody. BitGo’s cold storage and 2FA protect collateral.
• Transparent. Clear terms and audited security practices.

Risks:

• KYC Mandatory. Required for loan access.
• Limited Collateral. Primarily BTC-focused, with less variety than competitors.

4. MakerDAO (Sky): Decentralized Crypto Loans for Bitcoin Alternatives

Rebranded as Sky in 2024-2025 under its “Endgame” plan, MakerDAO powers decentralized crypto loans via the DAI/USDS stablecoin. While Bitcoin isn’t directly supported, HODLers can use wrapped Bitcoin (wBTC) or ETH as collateral to mint stablecoins instantly, avoiding intermediaries. Governed by SKY token holders (1 MKR = 24,000 SKY), it requires 150%+ over-collateralization to manage liquidation risks. Sky’s multi-chain expansion and real-world asset integration enhance its offerings for DeFi-savvy users.

Why HODLers Choose It:

• Decentralized Crypto Loans. No custodian risk, ideal for wBTC HODLers.
• Instant Liquidity. Mint DAI/USDS without selling assets.
• Transparent. On-chain governance by SKY holders.
• Scalable. Multi-chain upgrades broaden access.

Risks:

• Complexity. DeFi expertise needed for wBTC/ETH vaults.
• Liquidation Risk. Volatile collateral threatens loan stability.
• Rebranding Friction: SKY/USDS transition may disrupt integrations.

5. Aave: DeFi Powerhouse for Flexible Crypto Loans

Aave, a leading DeFi protocol, offers decentralized crypto loans, allowing HODLers to borrow against Bitcoin via wBTC or other assets like ETH on Ethereum and multiple chains. Users deposit collateral into smart contracts to borrow stablecoins (e.g., USDC) or other tokens instantly, with LTVs typically up to 70%. Interest rates vary dynamically (often 2-10% APR for stablecoin loans), and Aave’s flash loans enable unique use cases like arbitrage. Fully on-chain and governed by AAVE token holders, it ensures transparency and no custodian risk.

Why HODLers Choose It:

• Flexible Crypto Loans. Borrow against wBTC with dynamic rates.
• Decentralized. No platform risk, fully transparent.
• Innovative. Flash loans for advanced strategies without upfront capital.
• Scalable. Multi-chain support enhances accessibility.

Risks:

• Technical Barrier. Requires DeFi wallet setup and knowledge.
• Liquidation Risk. Volatile wBTC prices can trigger liquidations.
• Variable Rates. APRs fluctuate with market demand.

Conclusion: Smart Borrowing for Bitcoin HODLers

To preserve long-term gains, a crypto loan allows Bitcoin HODLers to access liquidity without selling their holdings. CoinRabbit and Nexo lead the market in centralized crypto loans, offering a combination of speed, flexibility, and security. Ledn provides a Bitcoin-focused alternative within CeFi, while Sky (MakerDAO) and Aave dominate decentralized lending for wBTC users in the DeFi space.