Is CeFi lending safer than DeFi lending?

CeFi removes smart-contract risk but introduces custodial and counterparty risks. DeFi is non-custodial, but it relies on the integrity of smart contracts and market oracles. Both require risk management.

What LTV should I choose?

Conservative LTVs (e.g., 30–40%) reduce liquidation risk. Add buffers for volatility and set alerts. Check each platform’s thresholds and margin call rules.

Which platform is best for beginners?

CeFi platforms like Nexo or YouHodler have simpler onboarding and UX. Start small, enable 2FA/withdrawal protections, and read the fee/interest schedule carefully.

Can I borrow in stablecoins?

Yes. CeFi options often include USDT/USDC. In DeFi, protocols like Aave let you borrow stablecoins against crypto collateral, subject to pool liquidity and rates.

Best Crypto Lending Platforms in 2025

We compare the most reliable crypto lending options across CeFi and DeFi in 2025. Learn how they differ by custody, rates, LTV rules, supported assets, and risk controls — and pick the one that matches your goals.

At a Glance

Platform	Type	Borrow Assets	Collateral (examples)	Typical LTV	Key Risks
Nexo	CeFi	USDT/USDC + selected crypto	BTC, ETH, stablecoins	Up to platform limits; conservative users keep 30–40%	Custodial & counterparty risk; variable promos/rates
YouHodler	CeFi	USDT/USDC + selected crypto	BTC, ETH, stablecoins	Similar to CeFi peers; keep buffers for volatility	Custodial risk; liquidation on adverse moves; fee variability
Binance Loans	CeFi	USDT, and select crypto	BTC, ETH, BNB, more	LTV depends on asset; strict liquidation rules	Exchange/platform risk; manage LTV alerts closely
Aave (DeFi)	DeFi	Stablecoins & crypto (pool-dependent)	ETH, WBTC, major stables	Protocol-set; health factor replaces CeFi “LTV” UX	Smart-contract/oracle risk; gas & on-chain complexity

CeFi vs DeFi: What Changes for Borrowers?

Custody: CeFi holds your collateral; DeFi keeps it in smart contracts under your wallet control.
Onboarding: CeFi requires KYC and offers simpler flows; DeFi is permissionless but needs a Web3 wallet and fee management.
Control & Transparency: DeFi is rule-based (health factor, liquidation thresholds) and on-chain; CeFi policies are platform-specific.
Costs & Rates: DeFi rates are market-driven; CeFi uses platform schedules and promos. Both change over time.

How We Picked (Selection Criteria)

Active platform with strong reputation (2025), regular updates, and clear documentation.
Transparent risk model (LTV/health factor), collateral lists, and liquidation rules.
Security posture: audits (DeFi), account protections (2FA, withdrawal controls), proof-of-reserves where applicable.
Practical UX: clear borrowing flow, alerts, and repayment options.

Safety Tips Before Borrowing

Use conservative LTV (30–40%) and keep spare collateral to top up during volatility.
Enable 2FA and withdrawal protections (CeFi). In DeFi — use a hardware wallet and trusted frontends.
Read fee schedules and test small amounts first.
Diversify: never rely on a single platform for critical liquidity.

Our Verdict

For beginners seeking simplicity, start with Nexo or YouHodler and keep LTV conservative. If you’re comfortable on-chain and want full control, explore Aave. Active Binance users can consider Binance Loans for integrated liquidity.

FAQ — Crypto Lending 2025

What’s the safest way to borrow?: Keep LTV low, set alerts, and prepare extra collateral. Use hardware wallets for DeFi; enable 2FA and withdrawal controls for CeFi.
Fixed vs variable rates?: DeFi loans are typically variable and market-driven. CeFi may offer promo or tiered rates. Always check current schedules.
Can I repay early?: Usually yes, but review fees and terms. In DeFi, you can close positions at any time, subject to the availability of gas and liquidity.
Is rehypothecation a risk?: In CeFi, yes — check disclosures and proof-of-reserves. In DeFi, collateral stays in protocol contracts with transparent rules.