Coinbase review

Coinbase Loans

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Verdict: Coinbase offer no credit-check loans at a decent 8% APR. However, this brand best suits newer users and those who place greater emphasis on security; predominantly due to only supporting one collateral currency (BTC), which can prove volatile at the best of times.

Although the LTV & loan health formula can prove confusing for newer users, it remains easy to learn and understand. 98% of user currency is stored offline in cold storage, with all hot-wallet currency completely insured.

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7/10 (Expert Score)
Product is rated as #5 in category Loans

Please note, Coinbase calculates loan-to-value (LTV) ratio with the following formula; loan amount divided by value of BTC collateral, with loan health levels determined through subtacting the LTV from 100%. For example, those who borrow $100 with a BTC collateral of $1000 will have an LTV equal to 10%, resulting in a loan health of approx. 90%. Those who find their loan health below 40% will require BTC collateral or a payment.

However, those who take no action will have their BTC collateral sold by Coinbase until your loan health increases to 50%. One problem we find with BTC only collateral is that it's very volatile. When the price of BTC drops significantly, your loan health could decrease, requiring repayment or additional collateral. Whilst we understand Coinbase's reason behind sticking to BTC, we still feel like additional currency support would prove a welcome addition.

Supported Currencies
1.5
Interest Rates & Fees
7
Customer Support
7
Company Reputation
9
PROS:
  • Fair 8% APR
  • No credit checks
  • User friendly design
  • Fairly fast loan payouts
  • Secure servers & established brand
  • Fully insured against any loss of currency
  • Secure - over 98% of customer currency in cold storage
  • 1 year term - pay interest each month with up to 1 year to repay the principal
CONS:
  • Confusing margin call LTV.
  • Unavailable in China
  • Automated live support
  • Only accepts BTC collateral
  • Fairly sizeable $2000 minimum loan

Specification: Coinbase Loans

Loan Information
Accepted Collateral
Supported Loan currencies , , , , , , , , , , , , , , , ,
Loan to Value Ratio (LTV) 50%
Margin Call LTV Variable
Maximim loan amount $100,000
Minimum loan amount $2000
Company & Availability
Insurance Coverage Pooled
Eligible regions
Excluded regions Algeria, Bolivia, China, Israel, Morocco, Nepal, Pakistan, Vietnam
KYC
Credit Check No
Crypto Loan Rates
Bitcoin APR 8%
Ethereum APR Not supported
Bitcoin Cash APR Not supported
BNB APR Not supported
DAI APR Not supported
EOS APR Not supported
HUSD APR Not supported
Litecoin APR Not supported
NEXO APR Not supported
PAX APR Not supported
PAXG APR Not supported
Stellar APR Not supported
Tron APR Not supported
TUSD APR Not supported
USDC APR Not supported
USDT APR Not supported
XRP APR Not supported
Asset protection & Insurance
Cold Storage Yes
Insured by FDIC
Specification
APR Rates 8%
Fiat Currencies 8%

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