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How to borrow Ethereum

You can borrow ETH through a number of exchanges and specialized lenders in the US, but make sure you understand the risks first.

Borrowing Ethereum (ETH) is a straightforward way to get access to ETH coins for a fraction of the cost of purchasing them outright. Several exchanges and specialized lenders in the US let you borrow ETH once you deposit another cryptocurrency or US dollars as collateral.

You can use your borrowed ETH for trading, staking, yield farming and a range of other decentralized finance (DeFi) activities. You will need to repay your loan plus any interest accrued, so be careful to factor this into your trading strategy and proceed with caution.

Disclaimer: This page is not financial advice or an endorsement of digital assets, providers or services. Digital assets are volatile and risky, and past performance is no guarantee of future results. Potential regulations or policies can affect their availability and services provided. Talk with a financial professional before making a decision. Finder or the author may own cryptocurrency discussed on this page.

How to borrow ETH

  1. Compare lenders.
    The easiest way to borrow Ethereum is from a cryptocurrency exchange or lender. Choose one by comparing your options in the table below. If you plan to deposit US dollars, look for one that supports your preferred payment method. Use the Go to site button to create an account.
  2. Create an account.
    To open an account with your chosen platform, you'll need to verify your email address and identity. You may need to have some photo ID and your phone ready.
  3. Decide how much you want to borrow.
    Make sure you only borrow as much as you can afford to repay. There are several important areas you should factor into this decision alongside the risks of borrowing.
    • How long you plan to hold the loan for.
    • Whether the interest rate (APR) you need to pay is variable or fixed.
    • What the frequency of repayment terms are (weekly or monthly).
    • What the maximum loan to value (LTV) ratio is. The LTV determines how much you can borrow based on the value of the assets deposited as collateral.
    • How long you can service the loan if the value of your collateral drops. For example, if you deposit Bitcoin and the value drops by 20% while your loan is active, this will affect the LTV of your loan.
  1. Deposit collateral.
    Once you have decided how much you want to borrow, you will need to deposit collateral to take out the loan. Each platform has different collateral requirements and the LTV will vary depending on the asset you deposit. There are additional risks you need to factor in if you plan to use cryptocurrency as collateral as the volatility of prices can affect your LTV. Consider using a stablecoin or fiat currency to reduce volatility.
  2. Monitor your balance.
    If your LTV dips beneath a certain threshold, your loan may get liquidated and the lender takes your collateral. Check back regularly to monitor your loan, top up your collateral if necessary and ensure that any repayments are made on time. If your lender offers them, enable alerts about the status of your loan and relevant market prices to help you monitor your loan responsibly.
  3. Repay the loan.
    Once you have made use of your borrowed ETH, you will need to return it to the lender and pay any additional interest accrued. This will vary between lenders but is as simple as transferring the total amount to the nominated address in your account.

Where to borrow Ethereum in the US

1 - 1 of 1
Name Product APR LTV Accepted Collateral Issued Currencies
Helio crypto loan
Not rated yet
Helio crypto loan
4% to 9%
50% to 75%
BTC, ETH, LTC, XRP
USD, Stablecoin, Crypto
Borrow up to $3 million on the value of your cryptocurrency.
Go to site
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Risks of borrowing Ethereum

  • LTV ratio. This determines how much you can borrow based on how much collateral you deposited. For instance, an LTV of 75% would let you borrow $750 worth of ETH against a deposit of $1,000. If the value of your collateral drops, you will be forced to repay part of your loan or add collateral to maintain the loan. Most lenders will let you know your LTV limit when you take out your loan and will also display an LTV threshold so you can add collateral to avoid automated liquidation.
  • Collateral volatility. The ability to maintain your loan is based on the LTV. The LTV is in turn based on the value of your collateral. Any asset you deposit as collateral is subject to price volatility, even fiat currencies and stablecoins. As such, you need to monitor changes in the price of the asset you deposited. To maintain your loan, you may be required to top up your collateral to avoid hitting a liquidation threshold.
  • Market risk. It's often said that you should never invest more than you can afford to lose and this is true with borrowing. If you are planning to borrow cryptocurrency to engage in trading or DeFi activities, be aware of the risks involved and what the total debt will be if your position is liquidated. Remember that interest will continue to accrue until you are able to return the borrowed amount in full.
  • Insurance. Many cryptocurrency lenders do not have insurance, nor are they beholden to the same laws and standards of banks in the US.
  • Currency exposure risk. When borrowing a cryptocurrency like ETH, you may be switching between several currencies before you close the loan. Each of the currencies has its own set of risks, such as price volatility, which need to be taken into account.
  • Locked collateral. Once your loan is taken out, your collateral will be locked until you can repay the loan. If you think you may need access to these funds at any point during the term of the loan, you should reconsider whether taking out a loan is appropriate for you.
  • Counterparty risk. When you deposit your funds as collateral, you are trusting a third party to take care of them. If anything should happen to the platform custodying them – such as bankruptcy – you risk losing all of your collateral.

Bottom line

Borrowing Ethereum can be a useful tool for increasing your purchasing power, especially for use in trading, yield farming and DeFi. Getting started is easy and shouldn't take any more than an hour.

Despite the low fees, the risks are substantial and sudden drops in the market can cause you to lose your collateral if your LTV goes above a certain threshold. Cryptocurrency loans should only be used as part of a comprehensive trading plan that includes responsible risk management.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.

Name Product Deposit methods Fiat currencies Cryptocurrencies Offer Disclaimer Link
eToro Cryptocurrency Trading
eToro Cryptocurrency Trading
Bank transfer, Credit card, Debit card, Neteller, Skrill

18

78

Disclaimer: Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply.
Go to site

Capital at risk

View details
Binance Cryptocurrency Exchange (Not available to US users)
Bank transfer, Cryptocurrency

1

369

Go to site

Capital at risk

View details
KuCoin Cryptocurrency Exchange
KuCoin Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card, PayPal, P2P

50

743

Go to site

Capital at risk

View details
Bybit Cryptocurrency Exchange
Bybit Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card, P2P

73

279

Disclaimer: Highly volatile investment product. Your capital is at risk.
Go to site

Capital at risk

View details
Gate.io Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card

8

1607

Go to site

Capital at risk

View details
Kraken Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card, Apple Pay, Google Pay, SWIFT

8

222

Go to site

Capital at risk

View details
OKX Cryptocurrency Exchange
Bank transfer, Cryptocurrency, iDEAL, PayPal, POLi, SEPA, Faster Payments (FPS)

35

338

Go to site

Capital at risk

View details
Uphold
Uphold
Bank transfer (ACH), Credit card, Debit card, Apple Pay, Google Pay

27

237

Capital at risk

View details
EXCLUSIVE
Paybis Cryptocurrency Exchange
Bank transfer, Credit card, Debit card, Neteller

42

373

Finder Exclusive: Get 25% discount on all commission for 1 transaction when using promocode Finder25. There is no time limit on the validity of the promo code.
US residents: Restricted in the following states - NY, CT, NM, WA, HI, AL, VT, FL, AK, NV.
Go to site

Capital at risk

View details
Finder Award
Bitstamp Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card, SEPA, Faster Payments (FPS)

3

90

Capital at risk

View details
Coinmama Cryptocurrency Marketplace
Credit card, Fedwire, SEPA, Google Pay, SWIFT, Bank card

6

15

Capital at risk

View details
OFFER
Gemini Cryptocurrency Exchange
Bank transfer (ACH), Cryptocurrency, Debit card, PayPal, Apple Pay, Google Pay, SWIFT

7

152

Go to site

Capital at risk

View details
Finder Award
Crypto.com App
Bank transfer, Credit card, Cryptocurrency, Debit card, PayPal, Wire transfer, Apple Pay, Google Pay, SWIFT

31

384

Capital at risk

View details
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Bybit Cryptocurrency Exchange

Bybit Cryptocurrency Exchange logo
  • Offers leverage and derivative trading
  • Supports EUR, GBP and CHF
  • Licensed to operate in all European countries
Go to site
Disclaimer: Highly volatile investment product. Your capital is at risk.

Kraken Cryptocurrency Exchange

Kraken Cryptocurrency Exchange logo
  • Large selection of cryptocurrencies
  • Low fees for active traders
  • Pleasant UI for new traders
Go to site

KuCoin Cryptocurrency Exchange

KuCoin Cryptocurrency Exchange logo
  • Buy, sell and trade over 700 crypto assets
  • Supports 10 Asian fiat currencies
  • Offers crypto futures trading
Go to site

Kraken Cryptocurrency Exchange

Kraken Cryptocurrency Exchange logo
  • Buy, sell and trade over 200 crypto assets
  • Licensed to operate in 17 jurisdictions in Oceania
  • Supports AUD
Go to site

Binance Cryptocurrency Exchange (Not available to US users)

Binance Cryptocurrency Exchange (Not available to US users) logo
  • Supports over 300 crypto assets
  • Binance Pay enables users spend their crypto
  • Binance P2P supports multiple African fiat currencies
Go to site

Binance Cryptocurrency Exchange (Not available to US users)

Binance Cryptocurrency Exchange (Not available to US users) logo
  • Supports over 300 crypto assets
  • Binance Pay works with Credencial Payments to support crypto payments
  • Binance P2P supports five Latin American fiat currencies
Go to site

Bybit Cryptocurrency Exchange

Bybit Cryptocurrency Exchange logo
  • Supports leverage and derivative trading
  • Supports 300 spot trading pairs
  • Low-to-non-existent trading fees
Go to site
Disclaimer: Highly volatile investment product. Your capital is at risk.

Written by

James Edwards

James Edwards was the global cryptocurrency editor at Finder. He coordinates a distributed team of journalists to help further Finder's mission of helping people make better financial decisions. He has been using Bitcoin since 2013 and began working in the industry in 2017. He takes pride in boiling down complex topics into language his parents can understand. His expertise has seen him called on to report at events such as TechCrunch Disrupt, CoinDesk Consensus and IBM Think and has coordinated a vast number of high-profile interviews with the industry's brightest minds. He is a regular contributor to Nasdaq, The Street and is frequently called upon for market commentary in Australia and abroad. See full profile

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