Bitcoin Loans
Borrow USD against your Bitcoin without selling. No forced liquidation. No tax event. Compare the top Bitcoin loan providers and learn how collateralized lending works.
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How Bitcoin Loans Work
A Bitcoin loan lets you borrow fiat currency by depositing BTC as collateral. You receive USD, EUR, or stablecoins while the lender holds your Bitcoin. When you repay the loan plus interest, your collateral is returned in full.
Why not just sell? Long-term Bitcoin holders often need cash for business expenses, real estate, or investment opportunities. Selling triggers capital gains tax — potentially 20–37% in the US. A Bitcoin loan avoids this taxable event entirely. The interest you pay may even be tax-deductible if funds are used for business purposes. For detailed strategies, see our Bitcoin tax strategy guide.
The process is straightforward: You choose a loan-to-value (LTV) ratio, deposit the required Bitcoin collateral, receive your loan in fiat or stablecoins, make interest payments on schedule, and reclaim your BTC upon full repayment.
Choose a Lender & LTV Ratio
Compare providers below. Lower LTV ratios (20–40%) mean you borrow less but have a larger buffer before liquidation. Higher LTV (50–70%) means more cash but more risk.
Deposit Bitcoin Collateral
Send BTC to the lender's custody address (or multisig wallet for non-custodial options like Unchained). Your collateral is locked until repayment.
Receive Fiat or Stablecoins
Funds are typically disbursed within 24 hours via bank transfer, wire, or stablecoin. Some platforms like Nexo offer instant credit lines.
Make Interest Payments
Pay interest monthly or at maturity depending on the loan terms. Rates typically range from 6.9% to 14% APR depending on the provider and LTV.
Repay & Reclaim Your BTC
Once the principal and interest are fully repaid, your Bitcoin collateral is released back to your wallet.
Emergency Cash
Need liquidity without selling? Take a short-term loan and repay when Bitcoin rebounds. Avoid locking in losses during a dip.
Business Financing
Use Bitcoin collateral to fund operations, inventory, or new ventures. Interest may be deductible as a business expense.
Tax Strategy
Borrowing isn't a taxable event. Access your Bitcoin's value without triggering capital gains. Learn more in our tax strategy guide.
New to Bitcoin? Start with our beginner's guide before exploring lending. For a broader view of Bitcoin in finance, see our Bitcoin finance guide.
Bitcoin Loan Provider Comparison
We looked at rates, custody model, minimum loan sizes, KYC requirements, and how these platforms actually behaved when things got rough in 2022. Here's how they stack up:
| Provider | Min Loan | LTV Ratio | Interest Rate | Custody | KYC | Our Rating |
|---|---|---|---|---|---|---|
| Strike Loans Lowest US APR, zero fees | $10,000 | 50% | ~9.5% fixed | Custodial (no rehypothecation) | Yes | 4/5 |
| Hodl Hodl / Debifi P2P multisig, minimal KYC | Varies | 30–90% | 8–15% | 3-of-4 multisig (non-custodial) | No | 4.25/5 |
| Surge Credit Taproot vault, audits pending (beta) | $5 | 50% | 6.9% var / 9.9% fixed | Non-custodial Taproot vault | No | 3.75/5 |
| Ledn Survived 2022 without losses | $500 | 50% | 10.4–11.4% | Segregated custody (no rehypothecation) | Yes | 4.25/5 |
| Unchained Gold-standard custody, US-regulated | $150,000 | 40–60% | ~14.2% | 2-of-3 multisig (you hold a key) | Yes | 4.5/5 |
| Nexo Lowest minimum, regulatory record | $50 | 20–50% | 2.9–18.9% | Custodial | Yes | 3/5 |
| SALT Lending 3 and 5-year fixed-rate loans | $5,000 | 30–70% | 9.95–14.45% | Custodial | Yes | 3.25/5 |
| Lava Self-custody via DLCs, Bishop Fox audited | $1,000 | 50% | ~10–13% variable | Non-custodial DLC | Yes | 4.25/5 |
| Firefish EU non-custodial P2P, MiCA-registered | ~€2,000 | 60–70% | ~7–12% | Non-custodial multisig | Yes | 4/5 |
| Coinbase Loans Onchain via Morpho, mainstream US brand | $1 | Up to 86% | ~5–10% variable | cbBTC on Morpho (Base L2) | Yes | 4/5 |
| Sats Terminal BTC→DeFi aggregator; Aave, Morpho, Venus, Kamino | $1 | 70–86% | 2–4% variable | Non-custodial (ERC-4337) | No | 4/5 |
| Arch Lending White-glove, ex-Goldman team | $25,000 | 50% | ~9–11% | Segregated via Anchorage | Yes | 3.5/5 |
| Bitfinex Borrow Trader-side margin lending; not in US | Trader-tier | 50% | ~5–15% variable | Exchange custodial | Yes | 3.25/5 |
| Aave (wBTC) Most battle-tested DeFi, no KYC | Onchain (gas) | Up to 78% | ~3–8% variable | wBTC on Aave v3 | No | 3.75/5 |
| Spark / Sky DAI/sUSDS via Maker risk discipline | Onchain (gas) | Up to 75–80% | ~4–9% variable | wBTC on Spark (Maker subDAO) | No | 3.5/5 |
| Kraken Loans Exchange margin; not for long-term holding | Trader-tier | 50% | ~5–15% variable | Exchange custodial | Yes | 3.25/5 |
| Liquidium Bitcoin-native; Ordinals/Runes collateral only | Varies (P2P) | Negotiated | ~10–25% | Non-custodial Bitcoin scripts | No | 3.25/5 |
| Bitstamp Lend EU-regulated; loan product less mature | $1,000 | 50% | ~6–12% variable | Exchange custodial | Yes | 2.75/5 |
Rates and terms as of June 2026. Verify current rates on each provider's website. Ratings reflect our assessment of security, transparency, and user experience.
Strike Loans
Lowest US APR, zero fees
Hodl Hodl / Debifi
P2P multisig, minimal KYC
Surge Credit
Taproot vault, audits pending (beta)
Ledn
Survived 2022 without losses
Unchained
Gold-standard custody, US-regulated
Nexo
Lowest minimum, regulatory record
SALT Lending
3 and 5-year fixed-rate loans
Lava
Self-custody via DLCs, Bishop Fox audited
Firefish
EU non-custodial P2P, MiCA-registered
Coinbase Loans
Onchain via Morpho, mainstream US brand
Sats Terminal
BTC→DeFi aggregator; Aave, Morpho, Venus, Kamino
Arch Lending
White-glove, ex-Goldman team
Bitfinex Borrow
Trader-side margin lending; not in US
Aave (wBTC)
Most battle-tested DeFi, no KYC
Spark / Sky
DAI/sUSDS via Maker risk discipline
Kraken Loans
Exchange margin; not for long-term holding
Liquidium
Bitcoin-native; Ordinals/Runes collateral only
Bitstamp Lend
EU-regulated; loan product less mature
Use our Bitcoin loan calculator to estimate monthly payments and total interest for any loan amount and rate.
Risks of Bitcoin-Backed Loans
These tools can work well in the right situation. They can also blow up badly in the wrong one. Three major Bitcoin lenders — Celsius, Voyager, BlockFi — all collapsed in 2022. Read this section before you put your Bitcoin on the line.
Liquidation Risk
If Bitcoin's price drops and your LTV exceeds the liquidation threshold (typically 80–90%), the lender will sell your BTC to cover the loan. A 50% BTC crash can wipe out your collateral entirely. During the 2022 bear market, thousands of borrowers lost their Bitcoin to forced liquidations.
Counterparty Risk
With custodial lenders, your Bitcoin is held by a third party. If the company becomes insolvent — as happened with Celsius, Voyager, and BlockFi in 2022 — you may lose your collateral. Multisig solutions like Unchained reduce this risk significantly.
Interest Rate Risk
Some lenders offer variable-rate loans that can increase over time. A loan that starts at 8% APR could climb to 15% or higher. Always confirm whether your rate is fixed or variable, and calculate the total cost under worst-case scenarios.
Regulatory Risk
Bitcoin lending operates in a regulatory grey area in many jurisdictions. New regulations could restrict lending platforms, change tax treatment of interest, or require mandatory KYC where none existed before. Platforms may also change terms with short notice.
Liquidation Example
Here's the math that matters. Run these numbers before you sign anything:
- You deposit 1 BTC worth $90,000 at 50% LTV
- You borrow $45,000
- Your liquidation LTV is set at 85%
- Liquidation triggers if BTC falls to approximately $52,941 ($45,000 ÷ 0.85)
- That's a 41% drop from the deposit price — well within historical Bitcoin volatility
Mitigation: Choose a lower LTV (30–40%), keep extra BTC ready to top up collateral, and set price alerts at 10% and 20% above your liquidation price.
When Do Bitcoin Loans Make Sense?
When a Bitcoin loan fits
- You have significant unrealized capital gains and want to avoid a taxable event
- You need short-term liquidity (under 12 months) and expect Bitcoin to remain stable or rise
- You can afford to add collateral if Bitcoin drops 30–50%
- You have a clear repayment plan from income or business revenue
- You prefer non-custodial options and understand multisig or Taproot vaults
When it does not fit
- Your Bitcoin is your entire net worth and losing it to liquidation would be devastating
- You have no plan to repay and are hoping the Bitcoin price will bail you out
- You want to borrow at maximum LTV for leveraged trading
- You do not have extra Bitcoin or cash to meet a margin call
- You do not understand how liquidation works
Bitcoin Loans: Frequently Asked Questions
Continue Reading
Strike Loans Review
Lowest US Bitcoin loan APR (~9.5%), zero origination or liquidation fees, no rehypothecation.
Hodl Hodl / Debifi Review
Non-custodial 3-of-4 multisig with minimal KYC. The privacy-preserving option.
Surge Credit Review
Taproot vault custody, $5 minimum, no KYC. Early stage, audits pending.
Nexo Review
Lowest minimum ($50) but SEC + California regulatory record. Honest 6/10 verdict.
Bitcoin Loan Calculator
Estimate monthly payments, total interest, and liquidation price for any loan.
Bitcoin Tax Strategy
Tax implications of Bitcoin loans, interest deductions, and capital gains.