Bitcoin Loans

Borrow USD against your Bitcoin without selling. No forced liquidation. No tax event.

7-15% interest
LTV: 50-70%
Tax-efficient

How Bitcoin Loans Work

A Bitcoin loan is a line of credit you can open by using your Bitcoin as collateral. You deposit BTC, receive fiat currency (USD/EUR), and repay the loan with interest — your Bitcoin stays in the platform's custody.

The appeal: Long-term Bitcoin holders often need cash for business, living expenses, or opportunities. Instead of selling (triggering capital gains tax), they can take a loan. The interest may be tax-deductible as a business expense.

The risk: If Bitcoin drops sharply, the platform may liquidate your collateral to protect themselves. Loan-to-value ratios (typically 50-70%) protect against small drops, but large crashes are dangerous.

Use Cases

Emergency Cash

Need liquidity without selling? Take a short-term loan and repay when Bitcoin rebounds.

Business Financing

Use Bitcoin collateral to fund operations or investments. Interest may be deductible.

Tax Strategy

Loan interest might be deductible, while a sale would trigger capital gains tax.

Top Bitcoin Lenders

Nexo

Instant loans. 7-12% interest depending on tier.

LTV: 50-60%Instant approvalGlobal

BlockFi

Established lender. 9.5-11.9% interest. Flexible terms.

LTV: 50%6-36 monthsUS preferred

Unchained Capital

Premium service. Peer-to-peer loans. Multisig-native.

LTV: 50-70%Personal serviceMultisig support
LenderInterest RateLTVTerms
Nexo7-12%50-60%Instant, flexible
BlockFi9.5-11.9%50%6-36 months
UnchainedVariable50-70%Flexible

⚠️ Risk Warning

If Bitcoin drops below the LTV threshold, your collateral may be liquidated. For example:

  • You deposit 1 BTC (worth $40k) at 50% LTV
  • You borrow $20,000
  • If BTC falls to $25,000, your collateral is now worth less than your loan
  • The platform may sell your BTC to recover their funds

Only borrow an amount you're comfortable losing.

FAQ

Is the interest tax deductible?

Possibly. Consult a tax professional. In some countries/circumstances, loan interest is deductible as a business expense.

What happens if Bitcoin crashes?

If collateral value falls below LTV, platforms may liquidate your Bitcoin. Set up price alerts.

Can I get a loan without KYC?

No. All regulated lenders require full identity verification.

Ready to explore Bitcoin loans?

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