Disclosure: All content is provided for educational purposes and should not be considered as investment advice. This article may contain links to services from our partners who compensates us.
Note: This review is slightly outdated and will be updated soon.
Founded in 2016, CoinLoan is a centralized and regulated cryptocurrency lending platform for cryptocurrency interest accounts and cryptocurrency loans.
For investors, CoinLoan offers interest rates up to 10.3% annually on a large list of secured coins and tokens with zero fees or limits, plus daily accrued interest and monthly payouts. Borrowers, on the other hand, can apply for crypto or fiat loans with no credit checks and without selling their crypto.
CoinLoan serves clients worldwide through their European legal entity, ExFinance OÜ, which is licensed under EU laws by the Estonian Financial Intelligence Unit and registered as an MSB with FinCEN in the US. The company holds three European financial licenses, allowing them to provide virtual currency wallet services, to operate as a financial institution, and to exchange virtual currencies against fiat currencies.
What Is CoinLoan?
CoinLoan.io is a peer-to-peer (P2P) lending platform that specializes in securing loans against cryptocurrency.
Borrowers temporarily relinquishes control of a predetermined amount of cryptocurrency – Bitcoin for example – as collateral to be exchanged for fiat currencies (EUR, USD, etc.).
For added insurance for both the investor and borrower, loans are “over-collateralized.” This means that after depositing your cryptocurrency onto the CoinLoan platform as collateral, you can receive a loan up to 70% of the market value.
Should the value of your crypto collateral drop during the term of the loan, the remaining 30% should act as insurance that can be sold by CoinLoan to pay back the investor.
CoinLoan Main Features
|Products||Cryptocurrency interest accounts and loans|
|Fees for lenders||None|
|Fees for borrowers||Varies|
|Deposit by credit card||Yes|
|Time to receive loan:||Instantly|
|Accepted fiat currencies||USD, EUR, GBP, RUB|
|Accepted cryptocurrencies||BTC, BCH, ETH, LTC, XMR or stablecoins TUSD, USDC, PAX, DAI, USDT|
|Platform founding year||2016|
|Minimal investment||€100 or equivalent|
|Estimated annual returns||Up to 12%|
|Loan security||Backed by crypto assets|
|Country of regulation||Estonian Financial Supervision Authority|
|Licence||European Financial Licences:|
FVR000111, FRK000091, FFA000241
CoinLoan Pros and Cons
- Easy setup and verification process
- LTV of 70% for added lending and borrowing security
- Intuitive dashboard for borrowers and investors
- Well-regulated under European legislation
- Ability to create custom loans
- Platform lacks transparency
- Limited background information on owners and shareholders
- Low volume of loans to invest in
What Are Crypto Loans (Bitcoin Lending)?
Cryptocurrency loans are loans that provide the borrower with fiat currency that is collateralized by crypto assets. Thus, the borrower is given USD, JPY, RUB, or any other form of relevant currency in exchange for Ether (ETH), Bitcoin (BTC), etc. as security for repayment.
What is Crypto (Bitcoin) P2P Lending?
Traditionally, peer-to-peer lending platforms provided a viable funding alternative for individuals and businesses seeking loans. This is typically an option used by people and organizations that don’t have the credit to qualify for a traditional bank loan.
With the rise of cryptocurrency, it was only natural that P2P lending would collide with the world of digital assets.
With P2P crypto lending, lending platforms like CoinLoan act as middlemen, serving as the custodian for transactions between borrowers and investors.
Here’s how the lending/borrowing process works on CoinLoan:
- The first step – If you’re an investor, you will deposit stable coins or fiat funds. If you’re a borrower, you will deposit crypto assets to secure a loan.
- Using the Lending Market – Search for the most suitable offer to either issue a loan right away or create a custom offer.
- Repaying the loan – Borrowers will commit to making their payments on time. If not, they put their crypto collateral at risk.
- The final step – The borrower pays off the loan, and the lender receives their funds and earned interest. In return, the borrower takes their crypto assets back into their possession.
What Is The Primary Appeal of CoinLoan?
In general, P2P lending platforms struggle with the ability to enforce collateral used to back small loans. Even if the collateral is clearly stated in the contract, it can be challenging to collect should the borrower default on the loan.
One of the primary appeals of a crypto P2P lending platform like CoinLoan is that crypto asset collateral makes it that much easier to enforce collection should the borrower default on their loan. This is because it is straightforward to form a contract that holds digital assets as collateral to back a loan.
Borrowers also benefit by capitalizing on the ability to convert crypto funds into fiat liquidity instantly, giving them the funds they need with little to no hassle.
How Much Can You Make on CoinLoan?
If you made it this far in the CoinLoan review, you might be wondering: How much can I actually make on the site? At the moment, they offer competitive returns at 10% – 12% on average. The rates are one of its major highlights when coupled with its low-risk profile due to its approach of backing fiat loans with digital assets.
CoinLoan makes itself an even more attractive P2P lending platform by allowing investors to set their own offers. In addition, investors are not required to pay fees for registration, deposits, transactions, or withdrawals.
Is CoinLoan Safe?
Coinloan promises adequate protection by providing a range of lender guarantees. Furthermore, CoinLoan guarantees repayments through its crytocolleteral model.
The platform will automatically inform the borrower when it’s time to make repayments. Lenders will be notified when the loan has been paid.
Transactions on the platform are highly secure with SSL protocol and additional security measures.
Furthermore, CoinLoan has all the licenses required to operate legally as a European company.
Moreover, CoinLoan is regulated by one tier-2 regulator, registered with FinCEN and FACTA in the U.S., stores client cryptoassets offline with Bitgo.
Through their partnership with the custodian BitGo, Coinloan clients unused assets are also secured with a $100 million insurance from Lloyd’s.
Step-by-Step Guide to Setting Up Your Account & Navigating the Platform
Setting up your account on is a simple process and shouldn’t take you more than a few minutes. Whether you’re an investor or a borrower, the set-up process is fast and pain-free.
We’ve compiled an in-depth walk-through in this CoinLoan review on how to set up your account, as well as how to navigate its intuitive interface.
Step 1: Setting up Your Profile
On the homepage, hit “Sign Up” in the top right corner.
Simply insert your email and desired password. Then click “Sign up”.
You will be immediately sent a verification code to your email (check the spam folder) that you will need to input into the appropriate field to continue the set-up process, as seen below:
Step 2: Navigating the Lending Market
Once you’ve verified your account, you’ll be presented with a welcome message about the Lending Market. This is where you’ll be able to lend and borrow money. The pop-up is 11 pages long, but it’s best to go through it step-by-step to gain a firm grasp of the site.
Depending on your perspective (borrower vs. lender), you’ll proceed to either the “Lend” page or the “Borrow” page.
Prior to this, however, you’ll need to verify your identity.
Step 3: Verifying Your Identity
Verifying your identity is a simple security precaution to ensure you are who you say you are and should only take a few minutes of your time.
To access the verification page, navigate to the upper right-hand corner and select “My Account” where you’ll be presented with a small drop-down menu.
You should now be presented with the following options:
Simply input your first, middle, and last name, date of birth, gender, place of birth, and phone number.
The next step involves inputting identity documents to complete the verification process. You’ll need either your passport, national ID card, or driver’s license to complete this step.
The verification step also requires that you upload a photo of yourself holding your ID card. Once your identity has been verified, you will be free to invest and borrow on the cryptocurrency platform.
Step 4: Lending
If you’re an investor reading this CoinLoan review, you’ll want to hit the “Lend” button on the “Lending Market” page, which will allow you to create a custom loan offer.
Because CoinLoan enables you to define the terms of your own loan, you’ll have to input the data of your loan terms.
Create your loan by inputting the data for lending reserve (the total lending amount of your offer), loan limit, loan term, interest rate, repayment option, and allowed crypto collateral.
Once you input the relevant data, you’ll see a summary of your loan offer.
When finished, check the “Loan Agreement” box and create your loan offer.
Here is an example of what a loan offer with Bitcoin would look like after inputting your data:
Step 5: Borrowing money
As a borrower reading this CoinLoan review, hit the “Borrow” button on the “Lending Market” page, which will take you to the “Create Loan Request” page.
You will then insert the relevant information that includes the loan amount, collateral amount, interest rate, loan term, LTV (loan-to-value-ratio), and repayment option.
Here’s what the loan request would look when populated with data:
That’s all there is to setting up your profile and navigating the site. It’s a simple to use platform that allows you to start lending and borrowing after a hassle free set up process.
But before we wrap up this CoinLoan review, let’s briefly go through the rest of the platform.
Step 6: Navigating the rest of the platform
Now you’re free to navigate the rest of the platform. The navigation on the site is relatively straightforward.
In addition to the lending market, you’ll be able to access other areas on the platform. We will quickly look at these one by one.
- “My Loans” displays information for lending, borrowing, and archived data.
- “My Wallet” displays information pertaining to the funds in your wallet, card manager (cards on file), transaction history, and information related to deposits and withdrawals.
- “Crypto Exchange” shows you the current exchange rate for the various currencies you’re attempting to exchange.
How Do You Invest on CoinLoan?
To invest on CoinLoan, deposit money into your account with Mastercard, TransferWise, or SEPA. Simply navigate to “My Wallet” and “Card Manager” to add your payment option of choice.
You will then be prompted to go through the verification process (step three) to verify your identity. Afterward, you’ll be free to set up a loan and wait for the system to match you with an appropriate investor.
Risks of Using the Crypto Lending Platform
There are plenty of upsides to using CoinLoan, but no amount of security can protect you from the fluctuations of the crypto market. A snapshot of the 2019 crypto market will showcase a turbulent year of highs and lows.
The volatility of the market could very well cause significant problems for both the borrower and investor. For instance, let’s say a borrower backs a fiat loan with Bitcoin, but its value suddenly nosedives to the point where the value of the loan is now three times greater than the crypto collateral.
While CoinLoan ensures your collateral is less vulnerable to fluctuations in crypto value through its loan-to-value (LTV) ratio of up to 70%, you can never completely eliminate the risk of market fluctuations.
CoinLoan Alternatives – Similar Cryptocurrency Lending Sites
You’ve reached the end of the CoinLoan review, but now you might be wondering if there are better alternatives out there. It isn’t the only fish in the sea. It has plenty of similar competitors that follow the same model of backing fiat and stable coin loans with cryptocurrencies.
Bitbond is a P2P lending platform that specializes in lending to small to medium-sized businesses and entrepreneurs. Bitbond is approved, registered and regulated by the German government, and strongly advocates cross border borrowing and lending.
SALT (Secured Automated Lending Technology) is a digital Ethereum loan platform based in Denver, Colorado. SALT relies upon blockchain technology to create smart contracts to develop its own system for distributing loans. Similar to CoinLoan, SALT allows users to back fiat loans with cryptocurrencies (along with other blockchain-based assets).
Additional competitors include:
- BTCPOP – a leader in the P2P loan market and a top contender to get a BTC loan
- Credible Friends – A smartphone app that functions as a P2P credit card replacement which allows users to borrow funds from trusted friends
- Nebeus – a fusion of a cryptocurrency P2P trading platform and a standard banking service, allowing you to transfer funds to your bank card with ease.
Is Crypto Lending Worth Your Time?
CoinLoan is an excellent resource for borrowers who have ample cryptocurrency resources that can be used as collateral for fiat loans. The platform is also great for investors who are interested in making a decent return through interest.
Yet, the low volume of investors and borrowers may reduce the number of opportunities you can find on the cryptocurrency lending platform. It should also be noted that the volatility of the crypto market could cause the value of crypto collateral to fluctuate negatively, causing potential problems for both the investor and the borrower.
That said, this CoinLoan review should reveal that its positives significantly outweigh its negatives and is recommended to investors looking to make a decent return, and borrowers who need fast cash.