When you lend Bitcoin, you give your BTC to a platform or protocol in exchange for regular interest payments, without selling it. Also known as crypto lending, this lets your Bitcoin work for you while you hold it—like earning interest in a savings account, but way riskier and less regulated. Unlike banks, most crypto lenders aren’t insured. If the platform fails, you could lose everything. That’s why knowing how it actually works matters more than ever.
DeFi lending, a system where smart contracts match lenders with borrowers without middlemen, is one way to lend Bitcoin. You lock your BTC into a protocol like Aave or Compound (often as wrapped BTC, or WBTC) and earn yields. But here’s the catch: wrapped tokens, like WBTC, rely on centralized custodians who control the real Bitcoin behind them. If BitGo or another custodian freezes assets or gets hacked, your interest payments vanish. And that’s not theoretical—multiple wrapped token projects have failed or been frozen.
Then there are centralized platforms—places like BlockFi, Celsius, or smaller exchanges—that promise high returns. But they’re not banks. They lend your Bitcoin to traders, hedge funds, or even other crypto projects. When they overextend, like Celsius did in 2022, users get locked out. The same pattern shows up in platforms like Tranquil Finance and C2CX, which turned out to be scams with no real infrastructure. Even Lucent and BitBegin have been flagged for suspicious activity. If a platform can’t explain how it earns the interest it pays you, walk away.
Some people try to lend Bitcoin through liquidity pools on decentralized exchanges. But that’s not lending—it’s providing liquidity. You’re exposed to impermanent loss and smart contract bugs. It’s not the same as earning fixed interest. And if you’re chasing high yields on obscure tokens like NODEMETA or FRED, you’re not lending Bitcoin—you’re gambling on a meme coin with zero trading volume.
What works? Stick to platforms with transparent audits, clear collateral ratios, and real user history. Look for services that let you withdraw your Bitcoin on demand. Avoid anything promising over 10% APY with no clear source of returns. And never lend Bitcoin to a platform that doesn’t let you control your private keys—even if it’s called "non-custodial."
Below, you’ll find real reviews of platforms that claim to let you lend Bitcoin—some legit, most not. You’ll see how people got burned, what red flags to spot, and which options still have trust after the crypto winter. No hype. Just facts from users who lost money—and those who didn’t.
Learn how to lend cryptocurrency and earn interest in 2025 with practical steps, platform comparisons, risk tips, and real earnings examples. Maximize returns while avoiding common traps.