Coinrabbit Review: Is It Worth Using To Get Interest?

Posted: Sep 28th, 2021Updated: Nov 20th, 2021
Coinrabbit Review
Lending and borrowing platforms gained widespread attention and popularity in recent years. In particular, the ability to hold onto Bitcoin and other assets without selling to earn a small interest payment each month.
Coinrabbit is a financial website that offers both crypto-backed loans and interest accounts. In this review, we will assess and compare Coinrabbit to the best websites to earn interest on crypto.

Coinrabbit

Trading Fees:N/A
Country:Worldwide
Currency:N/A
Promotion:None available at this time

Key Features

  • Designed for beginners with an easy to use and reliable platform
  • ID verification is not required immediately
  • Borrow stablecoins for 10 % APR
  • Earn 10% APY interest on USDT and USDC
  • Zero fees to deposit or withdraw funds
  • No time restrictions for borrowing and earning interest
Coinrabbit is a digital finance website that specializes in lending and borrowing cryptocurrency assets as collateral. The platform is well known for its streamlined account creation process and generous fixed interest rate of 10% for stablecoins.
Customers can invest their capital and earn interest during any market conditions. The supported assets that can be used as collateral for interest accounts are USDT, ERC20 and USDC only.

Key Features

  • Designed for beginners with an easy to use and reliable platform
  • ID verification is not required immediately
  • Borrow stablecoins for 10 % APR
  • Earn 10% APY interest on USDT and USDC
  • Zero fees to deposit or withdraw funds
  • No time restrictions for borrowing and earning interest
Coinrabbit is a digital finance website that specializes in lending and borrowing cryptocurrency assets as collateral. The platform is well known for its streamlined account creation process and generous fixed interest rate of 10% for stablecoins.
Customers can invest their capital and earn interest during any market conditions. The supported assets that can be used as collateral for interest accounts are USDT, ERC20 and USDC only.
Ease of useStarStarStarStarEmpty Star
ReputationStarStarStarStarEmpty Star
Deposit methodsStarStarStarStarEmpty Star
FeesStarStarStarStarStar
This post contains affiliate links with our partners who may compensate us. Read our disclaimer for further information.

What is Coinrabbit

Coinrabbit is a cryptocurrency lending platform that offers investors the ability to obtain crypto loans or earn interest on deposited stablecoins. Coinrabbit has partnered with ChangeNOW and Guarda to provide crypto transaction and storage solutions.
The ability to earn interest on deposited crypto will appeal to investors who want to continue to grow their crypto during a market decline (sometimes referred to as a bear market). During these times, investor confidence can be low so having the means to hold onto digital assets using a platform like Coinrabbit can be a worthwhile strategy. The combination of not having to complete a KYC process and being able to withdraw funds at any time without incurring fees assists are attractive features.
CoinrabbitCoinrabbit

Coinrabbit Pros & Cons

Coinrabbit Compared

Coinrabbit is a popular way to make money online through their crypto interest accounts. Here are a few alternative platforms like Coinrabbit that offers crypto-backed loans and interest accounts.
Exchangeavailable Coinsinterest RateratingPromotionWebsiteReview
blockfi logo

BlockFi

5+Up to 8.6% APY
Overall 4.9/5StarStarStarStarEmpty Star
Up to $250 Bonus in BTCVisit BlockFiBlockFi Review
Crypto.com Logo

Crypto.com

25+Up to 12% P.A
Overall 4.5/5StarStarStarStarEmpty Star
None available at this timeVisit Crypto.comCrypto.com Review
nexo logo

Nexo

8+Up to 12% P.A
Overall 4.4/5StarStarStarStarEmpty Star
None available at this timeVisit NexoNexo Review
Coinrabbit logoCoinrabbit logo

Coinrabbit

310% APY
Overall 4.5/5StarStarStarStarEmpty Star
None available at this timeVisit CoinrabbitCoinrabbit Review

Coinrabbit Cryptocurrency Loans

A key facet of the Coinrabbit crypto lending service is the option for customers to take out crypto loans after a deposit of collateral is made. Interest is charged on the loan amount and the collateral can be returned at any time provided the repayments including interest is paid.
How to BorrowHow to Borrow

How Is The Collateral Amount Calculated?

The amount of collateral that is required to be deposited is based upon a 50% Loan-to-Value LTV ratio. This means that twice the amount of digital assets to be loaned is required to be deposited. For example, if 1 Bitcoin at $50,000 is deposited then the user will be loaned $25,000 USDT. In this example, the collateral (BTC) is liquidated if its value suddenly drops below its market value due to volatility.
The liquidation price is determined by Coinrabbit. If the price of the collateral drops significantly then Coinrabbit will sell the asset for compensation. The low LTV safeguards collateral from liquidation.

How Does The Collateral Work?

Currently, BTC, ETH, BCH and NANO can be deposited as collateral and DOGE, USDT and USDC as the loaned digital assets. Once the deposit has been made, the funds are processed through Coinrabbit's partner, ChangeNOW, for a risk-management security check. If the check is successful, the loan is paid out to the users nominated wallet. The APR accumulates at the point when the collateral is released.
CollateralCollateral
The collateral is held in cold-storage and can be returned at any time provided the amount loaned and accumulated APR is paid. If the value of the collateral increases during the period of the loan, the current market price is not returned. Instead, the amount of collateral returned will exactly be the amount that was deposited.

What Are The Interest Repayments?

The annual interest rate is 10% (APR) with the interest based on the amount of the loan. Interest payments and are calculated monthly and included in the payment amount.

Coinrabbit Interest Earning Accounts

Interest accounts are Coinrabbit's second flagship product. Coinrabbit provides customers with opportunities to grow their crypto over time by offering accounts where the interest can be earned on the capital invested. This holds a particular advantage during times of market decline or volatility where investors know that their funds will earn interest over time. 

Supported Collateral

Users will be able to make one or several deposits of USDT, ERC20 and USDC only. Other crypto such as BTC, ETH and DAI are currently not supported. Investors who want to earn interest on other digital assets will need to seek an alternative platform such as Nexo or Blockfi.
Supported CryptoSupported Crypto
Coinrabbit does not charge any fees for depositing (or withdrawing) funds. The deposit process involves the use of the QR code or the provided copying address to deposit funds from the users wallet. The process takes between 5 and 10 minutes to complete whilst the legitimacy of the transaction is being checked via the AML security layer. Deposits can be partially or fully withdrawn at any time.
Coinrabbit has partnered with the highly reputable Guarda to provide cold storage of all deposited funds. The Coinrabbit risk control system checks all economies via block explorer confirmations every second. Any suspicious transactions are flagged and terminated.

Are The Interest Rates Competitive?

At the time of writing, deposits made into an interest account will accrue 10% Annual Percent Yield (APY) for the stablecoins Tether and USDC. Interest accumulates on a daily basis and is based upon the whole deposit amount meaning that interest does not compound over time.
Compared to other crypto interest earning platforms such as Hodlnaut and Blockfi, the interest rates offered are generally comparable, however at the lower end of the scale. As other platforms offer compounding interest (daily or weekly), this may be discouraging to investors who want to maximise their returns.
PlatformStablecoin Interest Rate (APY)
Coinrabbit10%
BlockFi8%
Hodlnaut10.5%
Nexo10-12%
Crypto.com12%

When Is Interest Paid Out?

Users who deposit USDT, ERC20 and USDC into Coinrabbit's cold storage will start accruing interest that is calculated on a daily basis. The daily reward is able to be tracked however interest payments are paid out monthly. The interest amount is calculated on the total deposit amount and does not compound over time.

Minimum and Maximum Amounts

The minimum deposit amount to start earning interest on USDT, ERC20 and USDC that is held with Coinrabbit is $100, whilst the maximum is $100,000. This is ideal for investors who opt to deposit smaller amounts of crypto.

What Are The Fees?

Coinrabbit charges zero fees for depositing crypto as collateral or withdrawing funds. Although no maximum loan terms are set, a $100 closing fee will be incurred if the loan period is shorter than 30 days.

Security Measures

Coinrabbit uses a combination of hot and cold wallets to secure customers funds deposited to the platform. Access to the wallets are restricted to authorized personnel only and not available to all staff members via closed VPN's. There is limited information on other security measures in place. With all exchanges, it is advisable to not leave large sums of money on third party providers in the event of an exchange hack which do occur from time to time.

Customer Service

The customer service team at Coinrabbit is contactable via email at support@coinrabbit.io. Alternatively, a 24/7 live chat bot is available to assist the more immediate troubleshooting issues.

Frequently Asked Questions

Collateral held with Coinrabbit is stored in wallets which can only be accessed by several IP addresses and via a VPN connection. Private keys for all wallets are renewed on a monthly basis to provide an extra level of security.
Users who want to take out more than one loan may do so by utilizing their existing collateral or depositing additional crypto. Each loan can be tracked and repayment information, interest and fees will remain unique.
Coinrabbit currently do not offer a crypto load card that can be used to spend loaned funds or be linked to the users bank account. Users who want to utilise this feature will need to consider another crypto lending platform such as Nexo.

Conclusion

To conclude our Coinrabbit review, we consider that the platform is well suited for investors that are looking to build wealth by leveraging their crypto. In return, the platform offers a safe and insured way to earn high-interest returns or access quick cash through a loan.
Visit Coinrabbit
Whilst the interest rates are generally on par with similar platforms, there are some other alternatives which provides better returns. A major drawback is the limited selection of support cryptocurrencies, however it is noted that Coinrabbit indicate that additional assets are planned to be added in the future.
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Kevin GrovesKevin GrovesKevin GrovesKevin is the founder and chief editor at hedgewithcrypto that he started in 2019 which has reached over 1.5 million visitors worldwide. He is passionate about cryptocurrency as an emerging technology and is heavily involved in the fast-growing fintech space. A professional trader growing his portfolio since 2016, he has a strong understanding of investing in the market using exchanges, brokers and derivatives platforms. After leaving his full-time job at the start of 2021, his mission today is to share information guides on crypto and to find the best exchanges via hedgewithcrypto through detailed reviews and comparisons. To stay up to date with the latest exchange reviews and guides on Bitcoin, trading, DeFi, staking and more, follow us via our newsletter and social media channels.
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