P2P Crypto Lending Without KYC: Complete Guide (2026)

What Is P2P Crypto Lending?

P2P crypto lending connects borrowers directly with lenders — no bank, no KYC, no credit score. It works like this:

• Borrowers deposit cryptocurrency as collateral and receive a loan
• Lenders provide funds and earn interest
• Smart contracts hold the collateral and enforce terms automatically

Unlike DeFi protocols (Aave, Compound) which use algorithmic pools, P2P lending lets individual lenders set their own terms: interest rate, duration, collateral requirements, and accepted assets.

Why P2P Lending Without KYC?

For Borrowers

• No credit check — your collateral is your credit
• No ID required — connect wallet and borrow
• Keep your crypto exposure — borrow against BTC/ETH without selling
• No tax event — borrowing is not a taxable sale in most jurisdictions
• Instant — no application processing, no waiting for approval

For Lenders

• Earn real yield — 5-20% APR depending on terms
• Over-collateralized — borrower deposits 150%+ collateral value
• Automated liquidation — smart contract liquidates if collateral drops below threshold
• No counterparty risk — collateral is in a smart contract, not a person's wallet
• Global pool — lend to anyone in the world

How CoinExchange P2P Lending Works

The Mechanics

1. Lender creates offer: "I'll lend $5,000 USDT for 30 days at 8% APR. Minimum collateral: 150% LTV"
2. Borrower accepts: Deposits $7,500 worth of ETH (150% of loan value) into escrow contract
3. Loan disbursed: Lender's $5,000 USDT is sent to borrower's wallet
4. During loan: If ETH price drops and collateral falls to 95% LTV, automatic liquidation triggers
5. Repayment: Borrower repays $5,000 + interest → collateral released back to borrower
6. Default: If borrower does not repay by deadline, lender claims the collateral

LTV (Loan-to-Value) Explained

LTV = Loan Amount / Collateral Value

Example: You borrow $5,000 against $10,000 of BTC (50% LTV). BTC would need to drop 50% before liquidation. Very safe.

Collateral Types

• Bitcoin (BTC) — most popular collateral
• Ethereum (ETH) — second most popular
• Stablecoins — for lending (less useful as collateral since no appreciation)
• SOL, AVAX, BNB — volatile but accepted
• Other tokens — depending on lender preferences

Strategies for Lenders

Conservative: Stablecoin Lending

• Lend USDT/USDC
• Require low LTV (max 60%)
• Accept only BTC/ETH collateral
• Target 5-8% APR
• Short terms (7-14 days)

Moderate: Balanced Yield

• Lend USDT/USDC or ETH
• Allow up to 70% LTV
• Accept top-10 crypto collateral
• Target 8-12% APR
• 30-day terms

Aggressive: High Yield

• Lend any crypto
• Allow up to 80% LTV
• Accept broader collateral range
• Target 15-20% APR
• Risk: more likely to liquidate (you get collateral, not cash)

Key Risk: Liquidation Does Not Mean Loss

If a borrower's collateral is liquidated, you (the lender) receive the collateral. At 95% LTV liquidation, you receive collateral worth ~105% of your loan. You end up with *more* value than you lent — just in a different asset.

Strategies for Borrowers

HODL and Borrow

• You hold BTC and believe it will appreciate
• Instead of selling BTC (taxable event), borrow against it
• Use the borrowed USDT for expenses
• Repay later when BTC is worth more
• Net effect: You kept your BTC exposure and avoided capital gains tax

Leverage Trading

• Deposit ETH as collateral → borrow USDT → buy more ETH
• Warning: If ETH drops, you lose both the borrowed ETH and your collateral
• Only for experienced traders with strong conviction

Emergency Liquidity

• Need fiat quickly without selling your crypto position
• Borrow short-term (7 days) against your holdings
• Repay when your next paycheck arrives
• Your crypto position stays intact

P2P vs DeFi Lending

Getting Started

As a Lender

1. Visit CoinExchange.Cash/loans
2. Connect your wallet
3. Click "Create Lend Offer"
4. Set your terms: amount, APR, duration, max LTV, accepted collateral
5. Publish — borrowers will find your offer
6. When matched, funds auto-lock and loan begins

As a Borrower

1. Visit CoinExchange.Cash/loans
2. Connect your wallet
3. Browse available lending offers
4. Accept an offer that fits your needs
5. Deposit collateral (automatically calculated based on LTV)
6. Receive loan funds to your wallet
7. Repay before deadline to reclaim collateral

Risk Management Tips

For Lenders

• Diversify across multiple loans (never put all funds in one loan)
• Prefer BTC/ETH collateral — most liquid in liquidation
• Set low max LTV — 60-65% gives ample buffer before liquidation
• Short terms — 7-14 day loans reduce exposure to market crashes
• Monitor positions — check collateral ratios daily during volatile markets

For Borrowers

• Over-collateralize — deposit more than minimum to avoid liquidation
• Set alerts — know your liquidation price and watch for it
• Have repayment ready — do not borrow without a clear repayment plan
• Avoid peak leverage — do not borrow at maximum LTV in volatile markets
• Partial repayment — reduce your loan balance to lower LTV if market drops

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Start lending or borrowing:

• Browse Loan Offers →
• Create a Lend Offer →
• Learn about escrow security →