Crypto loans are covered in full in the entry Crypto Lending, which explains how centralized lenders and DeFi protocols work, how rates are set and the risks involved. This page gives a short definition and explains how the two terms relate.
A crypto loan is any loan in which cryptocurrency is borrowed, lent or pledged as security. Most commonly, a borrower deposits bitcoin, ether or another coin as collateral and receives a loan in a stablecoin or regular currency, so they can raise cash without selling their holdings. Such loans are usually overcollateralized, and if the collateral's value falls too far, it is sold through forced liquidation. Loans may be arranged by companies, which hold the collateral, or through decentralized lending protocols run by smart contracts. The 2022 failures of several crypto lenders showed the risks for depositors who lent their coins to such firms.
"Crypto loan" describes a single borrowing arrangement, while "crypto lending" names the wider activity and industry. The terms overlap with crypto borrowing, which describes the same deals from the borrower's side.