September 7, 2021

Ledn Review

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Ledn is a Canada-based cryptocurrency service. They offer crypto-backed loans, interest accounts, and more. Are they safe and legit?

Overall Score

3.1

Cryptocurrency Trading

1.0

Interest Accounts

3.5

Crypto Loans

3.5

Mobile App

3.0

Commissions and Fees

4.0

Ease of Use

5.0

Research

1.0

Safety

4.0
5-point scale (the higher, the better)

Pros and Cons

  • Easy to Use
  • High Interest Rate for USDC
  • No Prepayment Penalties
  • Limited Coin Selection
  • No exchange
  • High Loan Interest Rates

Bottom Line

Very limited crypto lending platform with interest accounts

Most crypto newbies think coins are limited to 3 functions: holding, selling, or spending.

But with Ledn (a play on 'hodl'), you can earn, lend, and borrow against your Bitcoin.

There are a growing number of crypto services out there, and Ledn is just one of them. How does Ledn stack up against BlockFi and Nexo? Read on to find out.

What is Ledn?

Ledn is a Toronto-based crypto platform founded in 2018 by Adam Reeds and Mauricio Di Bartolomeo. Ledn's main services are savings accounts for Bitcoin and USDC and Bitcoin-backed dollar loans.

Compared to other, similar platforms, their services are quite limited, but they may appeal to those who only hold Bitcoin or USDC.

Before diving into the details of this digital lending platform, review the quick pros and cons to see if Ledn is right for you.

Pros and Cons

Ledn calls itself a 'safe haven' for your Bitcoin. Is it a good fit for your crypto needs and goals? Take a look at these pros and cons below, then stick around to see how it stacks up against other platforms.

Pros

  • Earn high rates on your holdings
  • Savings accounts have no minimum balance or fixed terms
  • Loaned crypto comes with comprehensive insurance
  • No early payment penalty on loans
  • B2X feature offers the potential to multiply Bitcoin
  • Cold storage of Bitcoins

Cons

  • Supports limited coins (just Bitcoin and USDC)
  • Doesn't currently offer exchange
  • Loan interest rates are high
  • Fairly young platform, lacks the reputation of older competitors

Where are They Available?

Canada-based Ledn is available in countries around the world, including the U.S., Canada, and Mexico, and countries in Europe and South America.

While they don't list all available countries, you can contact them at support@ledn.io to find out if your country is supported.

In the U.S., they aren't currently available in the following states:

  • New York, Connecticut, Washington, Texas, Hawaii, and Wyoming

What Cryptocurrencies do They Support?

Ledn has an extremely limited selection, and only supports Bitcoin (BTC) and USD Coin (USDC), a popular stablecoin tied to the U.S. dollar.

They don't operate an exchange, but they do offer a list of recommended exchanges where you can buy Bitcoin or USDC.

Review our recommendations for the best platforms to buy Bitcoin, plus helpful tips for choosing the right exchange for you.

Ledn Features

Ledn isn't a cryptocurrency trading platform, and they don't operate an exchange - yet.

In a February 2021 interview with Bitcoin Magazine, cofounder Adam Reeds mentioned that they plan to "expand on [their] product offering with no-fee trading rolling out in the next several months and go deeper into new markets."

Until then, users will have to purchase their crypto elsewhere if they intend to hold it with Ledn.

In the meantime, here are the crypto services they do offer:

Crypto Savings Accounts

No one can predict how Bitcoin will grow (or fall). But if you wouldn't risk your fiat currency losing value by leaving it under your mattress, why would your crypto be any different? Enter: Ledn's crypto savings account.

Ledn offers interest rates of up to 9.00% on Bitcoin and USD Coin stored in their savings accounts.

Here's how the rates break down:

CryptocurrencyBalance (Number of Coins)Annual Percentage Yield (APY
Bitcoin (Tier 1)0 - 26.10%
Bitcoin (Tier 2)> 22.25%
USD Coin> 09.50%

Best of all, there are no minimum balances and no fixed terms, which are necessary for earning the best rates at many of Ledn's competitors. You can withdraw your coins at any time.

Ledn has partnered with institutional borrower Genesis, a major institution in the world of digital asset lending. Essentially, Ledn is acting as a middleman while you lend your Bitcoin and USDC to them.

And just like with any loan, the borrower (Genesis) pays the lender (you) interest in exchange for temporary use of their funds. Ledn also generates interest on the collateral for their Bitcoin-backed loans, explained below.

Bitcoin-Backed Dollar Loans

Holding some Bitcoin? If you find yourself in need of cash—for a car payment, a medical bill, or another emergency, you have a couple of options:

  1. You could sell your Bitcoin. This might incur a capital gains tax or, if your Bitcoin lost value, leaves you at a loss.
  2. You could keep your Bitcoin and take out a loan with Ledn.

With Ledn's Bitcoin-backed dollar loans, you can apply in less than two minutes and receive a loan with an LTV (loan-to-value ratio) of up to 50%, with a monthly interest rate of 0.79%.

That means if you had one Bitcoin worth $30k, you could get a loan of $15k, funded within 24 hours of approval. You avoid any taxable events, and if the price of your Bitcoin increases while it's on loan, that money is yours to keep.

You can withdraw your money at any time, and there are no penalties for early payment.

Is my money safe with Ledn?
Any Bitcoin lent to Ledn is held by BitGo, an "industry-leading custodian covered by the most comprehensive insurance policy in the industry." BitGo is a qualified custodian that specializes in digital assets.

But be careful. If the price of Bitcoin drops suddenly and the value of your collateral falls below the 50% LTV ratio, you may be required to deposit more Bitcoin, or Ledn will sell off part of your Bitcoin to regain the necessary LTV.

To apply you'll need:

  • A copy of your government-issued identification document
  • A copy of your proof-of-address document
  • An image of you holding your government-issued ID
  • Your bank account details for funding

B2X: Increase Your Bitcoin Holdings

Ledn's B2X feature is essentially a way of opening a 2x leveraged position on Bitcoin, though they don't call it that.

It's designed for traders who expect the value of Bitcoin to increase, and will essentially multiply any gains they receive due to the price change by 2.

Conversely, it carries twice the risk of simply holding Bitcoin. If the price should drop, any losses will be multiplied as well. As such, B2X, like any leveraged trading feature, should be approached with extreme caution.

The interest rate on B2X loans is 0.79%, the same as their other loans, charged daily. Loans are executed instantly, can remain open for up to 12 months, and be repaid at any time without penalty.

B2X is currently unavailable in the following countries:

  • Iran, Libya, North Korea, Syria, United States, Africa, and Uruguay

Fees to Look Out For

There aren't too many fees to worry about with Ledn, but here's a look at the ones there are.

Withdrawal Fees:

USDC Savings Accounts incur a 10 USDC fee per withdrawal, which covers miners and transaction fees paid to record the transaction on the Blockchain.

The minimum USDC withdrawal is 10 USDC.

There is a 1,000,000 USDC withdrawal limit per 7-day period.

Bitcoin Savings Accounts only incur Miner Fees, which are subject to change.

The minimum Bitcoin withdrawal is 0.0005 BTC.

There is a 100 BTC withdrawal limit per 7-day period.

Security

With crypto, there's always an increased risk of fraud or theft compared to regular money and regular banks. That's why Ledn takes security seriously. Here are the measures they take to protect your account:

  • Encryption:
    • HTTPS is used on their site
    • AES-256 encryption protects passwords and sensitive information

  • Data:
    • Ledn has a policy of not selling user data
    • Data is stored on private networks, not local servers

  • Two-Factor Authentication
    • Will be required for most services

  • Video Confirmation
    • Will be required for withdrawals above certain amounts

  • KYC
    • Personal data is collected only to comply with KYC (know your customer) standards

How It Compares

Ledn vs BlockFi:
Like Ledn, BlockFi offers crypto services, and comparatively, they've got a lot more to offer. While you can't buy any coins on Ledn, you can on BlockFi.

Their exchange holds more than 10 coins, and you can earn interest on all of them. BlockFi has very similar rates to Ledn when it comes to Bitcoin, but Ledn offers a better rate for USDC.

BlockFi also offers crypto-backed loans on more coins than just Bitcoin, but their interest rates are much higher, at a minimum of 4.5%.

If you hold Bitcoin, you can get a much better deal for a loan at Ledn, and if you want to earn interest on your USDC, they'll serve you better too. Otherwise, BlockFi has a lot more options.

 BlockFi
 Visit Site
 

Ledn

BlockFi

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Benefits and Features

Cryptocurrencies Supported
Bitcoin, USD Coin
Bitcoin, Ethereum, Litecoin, Chainlink, PAX Gold, USDC, Binance USD, PAX, GUSD, BAT, DAI, UNI
Countries SupportedWorldwide; US except New York, Connecticut, Washington, Texas, Hawaii, and WyomingWorldwide, except for countries that are sanctioned or watch-listed
Fiat Currencies Supported
USD & select others
USD
Digital Wallet
Yes
Yes
Transaction Fee
No
No
Copy Trading
No
No
Limit Orders
No
No
Margin Trading
Yes
No
Spread
Variable
0.7% - 1.5%
Interest Accounts
Up to 9.00% APY
Up to 9%
Crypto Loans
Yes
Yes
Bank Account Purchase Fee
No
No
Debit Card Purchase Fee
No
No
Mobile App
Yes
Yes
ACH Transfer Fee
No
No
Wire Transfer Fee
No
No
Crypto Conversion Fee
No
No
Withdrawal Fee
$10 Withdrawal Fee
Varies based on cryptocurrency: 0.00075 BTC, 0.02 ETH, 0.0025 LTC
Address Allowlisting
No
Yes
Anonymity
No
No
Biometric Login
Yes
Yes
Cold Storage
Yes
Yes
Maximum Trading Amount
$2M per trade, $5M per day
Single-trade limit of $1.2m USD or equivalent
Two-Factor Authentication
Yes
Yes
Withdrawal Limit
No
7-day Withdrawal Limit varies by cryptocurrency: 100 BTC, 5,000 ETH, 10,000 LTC.
Up to $5,000 USD via direct bank withdrawal
 Visit Site

Do more with your digital assets

Ledn: Pricing information from published website as of 09/28/2021.

BlockFi: Pricing information from published website as of 06/30/2021.

Read more: BlockFi Review

Ledn vs Nexo:
Another crypto borrower and lender, Nexo lets you earn up to 12% on your crypto assets and borrow against them at a rate of 6.90% or more. Like BlockFi, Nexo has an exchange where you can buy and sell a limited number of coins, offering a level of convenience that Ledn doesn't yet.

While Nexo does offer potentially higher rates, their base rates may be worse than Ledn's. This is because they operate under a tiered membership structure based on your holdings of their proprietory coin NEXO, which can be difficult to buy in the U.S.

If you can limit yourself to Bitcoin and USDC, consider Ledn. If you live outside the U.S. and want to hold NEXO token, you may get better returns by going with Nexo.

 

Ledn

Nexo

SPECIAL OFFER
Do more with your digital assets - Learn More

SPECIAL OFFER
Earn Interest on NEXO - 12% APY - Learn More

 

Benefits and Features

Cryptocurrencies Supported
Bitcoin, USD Coin
BTC, ETH, LTC, XRP, EOS, XLM, BCH, USDT, USDC, USDP, TUSD, DAI, USDX, EURX, GBPX, DOT, BNB, LINK, TRX, PAX Gold, ADA, SOL, DOGE
Countries SupportedWorldwide; US except New York, Connecticut, Washington, Texas, Hawaii, and WyomingWorldwide, except: Afghanistan, Bulgaria, Burma (Myanmar), Central African Republic, Cote d'Ivoire, Cuba, Democratic Republic of Congo, Eritrea, Estonia, Iran, Iraq, Lebanon, Libya, North Korea, Republic of the Congo, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Yemen, Zimbabwe
Fiat Currencies Supported
USD & select others
Over 40
Digital Wallet
Yes
Yes
Transaction Fee
No
No
Copy Trading
No
No
Limit Orders
No
No
Margin Trading
Yes
No
Spread
Variable
about 2%
Interest Accounts
Up to 9.00% APY
Up to 12%
Crypto Loans
Yes
Yes
Bank Account Purchase Fee
No
No
Debit Card Purchase Fee
No
No
Mobile App
Yes
Yes
ACH Transfer Fee
No
No
Wire Transfer Fee
No
No
Crypto Conversion Fee
No
No
Withdrawal Fee
$10 Withdrawal Fee
Gas fees on crypto-withdrawals change over time
Address Allowlisting
No
Coming
Anonymity
No
No
Biometric Login
Yes
Yes
Cold Storage
Yes
Yes
Maximum Trading Amount
$2M per trade, $5M per day
$100,000 USD per transaction with no transaction limit per day
Two-Factor Authentication
Yes
Yes
Withdrawal Limit
No
Free withdrawals depend on loyalty tier:
Basic: 1 per month
Silver: 2 per month
Gold: 3 per month
Platinum: 5 per month

Do more with your digital assets

Ledn: Pricing information from published website as of 09/28/2021.

Nexo: Pricing information from published website as of 10/26/2021.

Read more: Nexo Review

Bottom Line

Within its scope, Ledn offers quite good rates of return on their interest accounts, and comparatively good interest rates on their loans.

However, their scope is quite limited, and the lack of a path to purchase coins directly on the platform adds an inconvenient hurdle to opening one of their savings accounts or taking one of their crypto-backed loans. Crypto traders with an appetite for variety will likely want to look elsewhere.

That said, they appear to have an eye toward growth, and as their offerings increase, Ledn may prove a competitive player in the world of crypto. It's a platform worth keeping your eye on.

BlockFi

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$75,000 - $99,999$100
$100,000+$250

Coinbase

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Personalized $5 reward offer is displayed after account creation. Limited time offer and while supplies last. Offer available to new users who have not previously verified their identification. Offer not available to new users who were referred to Coinbase through the Referral Program or who have previously opened an account using different contact information. Coinbase may update the conditions for eligibility at any time, in its sole discretion. See Terms and Conditions.

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You will need to stake in $1000 CRO to earn USD $10 worth of CRO. Only the first amount of CRO you stake is used to calculate the sign-up bonus.

eToro

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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

Jeremy Harshman is a protector of art and writing at CreditDonkey, a crypto comparison and reviews website. Write to Jeremy Harshman at jeremy.harshman@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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BlockFi Review

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