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Compare Bitcoin loans

Using a less volatile coin as your collateral can protect you from liquidation.

We reviewed crypto lenders across the market to help you find the best Bitcoin loan providers, so you can quickly compare rates and terms.
1 - 4 of 4
Name Product APR LTV Accepted Collateral Issued Currencies
Celsius Borrow
1% to 8.95%
25% to 50%
BTC, ETH, CEL, LINK, MATIC, ADA, DOT, LTC, UNI, EOS, AAVE, XLM, OMG, BCH, ZEC, MANA, DASH, SNX, PAXG, BAT, USDC, ZRX, BSV, COMP, USDT, TUSD, ETC, UMA, KNC, MCDAI, BNB, LUNA, GUSD, PAX, XAUT, BNT, WDGLD, SUSHI, 1INCH, XTZ, WBTC, AVAX
USD, USDC, USDT, TUSD, MCDAI, GUSD, PAX
Celsius offers 3 different interest options depending on the total value locked in your account.
Nexo crypto credit lines
0% to 13.9%
Starting at 30%
BTC, ETH, USDT, NEXO, DOT, AVAX, MATIC, SOL, ADA, XRP, BCH, LTC, BNB, EOS, XLM, LINK, TRX, PAXG, LUNA, UNI, DOGE, USDC, PAXG, TUSD, DAI
USD, EUR, AED, ARS, AUD, BGN, CAD, CLP, CNY, CZK, DKK, EGP, GBP, GEL, GHS, HKD, HRK, HUF, IDR, ILS, INR, JPY, KES, KRW, MAD, MXN, MYR, NGN, NOK, NPR, NZD, PEN, PHP, PKR, PLN, RON, RUB, SEK, SGD, THB, TRY, UAH, VND
Get approved in seconds for a credit line that uses single or multiple cryptocurrencies as collateral.
BlockFi Cryptocurrency Loans
9.75% to 4.50%
20% to 50%
BTC, ETH, LTC, PAXG
USD
Access the value of your crypto assets without cashing them in.
Helio crypto loan
4% to 9%
50% to 75%
BTC, ETH, LTC, XRP
USD, Stablecoin, Crypto
Borrow up to $3 million on the value of your cryptocurrency.
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Disclaimer: This page is not financial advice or an endorsement of digital assets, providers or services. Digital assets are volatile and risky, and past performance is no guarantee of future results. Potential regulations or policies can affect their availability and services provided. Talk with a financial professional before making a decision. Finder or the author may own cryptocurrency discussed on this page.

New to borrowing in crypto?

Crypto loans allows you to access your cryptocurrency’s value without having to sell it and take the tax implications of that sale. But just like with any loan, it’s important to understand the risks and shop around for the lender that best suits your needs.

You can get started using our guide to how crypto loans work.

How to compare Bitcoin loans

The terms of your Bitcoin-backed loan may seem similar to a traditional secured loan, but understanding the differences can help you make the right decision for you.

Rates and fees

Just like with a traditional loan, you’ll need to shop around for the best APR you can find with your crypto loan. Rates can range from 0% to 15%, rarely going higher. And unlike traditional loans, rates don’t depend on your credit score or financial details. Instead, lenders assign rates based on the amount of collateral you provide or, in some cases, your loan term.

You may also face origination fees or prepayment penalties, but it’s possible to find loans with low or no fees.

Loan-to-value ratio

Because crypto loans are secured loans, your loan-to-value ratio, or LTV, determines how much you can borrow. Typically, you’ll need 50% LTV, or twice as much collateral as the amount you want to borrow.

You may find lenders who offer 70% or 80% LTV loans, but that’s not always a good thing. With an LTV that high, a fluctuation in the Bitcoin market could either force you to add collateral to balance your account or end in your collateral being liquidated to cover the loan. These also typically have higher interest rates than low-LTV loans.

Margin call and liquidation thresholds

The volatility of the Bitcoin market can cause your crypto collateral to fluctuate in value, which puts your loan at risk. Most lenders contact you when your collateral’s value drops below a certain margin, typically somewhere around 65% to 70% LTV, with a request to add more collateral to balance the loan.

But if the market drops too far, or you don’t add collateral in time, the lender may liquidate some or all of your Bitcoin to bring up your LTV. This liquidation threshold is usually around 85% to 90% LTV.

Compare the liquidation thresholds of the lenders as you shop around, and find out how they handle margin call alerts, to help you avoid losing your collateral.

Loan amounts

In addition to minimum LTVs, many lenders set minimum loan amounts, which can vary widely. Some crypto lenders offer loans as small as $100, while others have minimum loan amounts of $50,000 or higher.

Collateral protection

The security protocols used by crypto lenders vary widely, so it’s important to know what to look for as you compare loan offerings. Safeguards can include the following:

  • Collateral storage. How the lender stores your crypto assets is vital. Some lenders use a cold wallet storage through a third-party custodian, while others may rehypothecate your crypto, meaning they use it to lend out or otherwise reinvest — which they may lose
  • Insurance. Some lenders offer a form of private crypto insurance to protect you against some kinds of theft. However, this is not as robust as FDIC insurance and may only cover a fraction of the Bitcoin you pledge as collateral.
  • Multisignature wallets. This form of security is rare but provides crypto keys to you, the lender and the third-party custodian. The collateral can be accessed with only two keys, which gives you some options, should either the lender or custodian go bankrupt.

How safe are crypto loans?

Issued currencies

Your lender may issue your loan amount in crypto stable coin, US dollars or, in some cases, another type of cryptocurrency.

Make sure you choose a lender who issues a currency that aligns with how you plan to use your loan. If you plan to spend your funds in USD but receive your loan in stablecoin, you’ll have to exchange the stablecoin for USD — which can take a few days and incur fees.

Repayment terms

Because the terms of crypto loans can vary widely, so can the repayment terms. Some lenders set up monthly payments, similar to a traditional loan. Others only require one full payment at the end of the loan. You’ll need to shop around to figure out which form of repayment works best for you.

Benefits of Bitcoin loans

Bitcoin is one of the biggest names in cryptocurrency, which comes with a few benefits when you use it as collateral for your crypto loan.

    • Relatively stable currency. If you look at long-term averages, Bitcoin has been more stable than most other cryptocurrencies like Ethereum and Dogecoin. This means there’s less of a chance you’ll need to add to your collateral or be liquidated due to a market drop.
    • Widely accepted as collateral. Most crypto lenders accept Bitcoin as collateral for your loan, which means you’ll have more options to choose from.
    • No credit check or income requirements. Instead of financial checks, Bitcoin lenders use know your customer (KYC) protocols to verify your identity.
    • Avoid capital gains tax. Using Bitcoin as collateral allows you to access its value without selling it, so you can avoid being taxed on the profits of your sale.

    Risks of using Bitcoin as collateral

    Using a more established crypto currency may seem like the way to go, but Bitcoin loans still come with risks.

          • Bitcoin is more volatile than fiat. While more stable than other types of crypto, Bitcoin is still volatile. As recently as January 2022, Bitcoin’s value dropped by as much as 10% or more in just 24 hours. This kind of volatility could put your collateral at risk.
          • No access to your key. Putting up your crypto as collateral for a loan means handing it over to your lender. For most lenders, that means giving over complete access to the wallet where it’s stored. If either your custodian or lender fails, you may lose all your collateral.
          • No FDIC insurance. Rather than the federally-backed insurance protections of traditional lenders, Bitcoin lenders may offer a limited insurance that only covers theft. Not all lenders offer insurance, and the insurance that is offered doesn’t cover your collateral’s value if the lender fails during the loan’s term.
          • Not available in all states. State regulations have attempted to fill in the gaps left by a lack of federal crypto lending laws. But state regulations vary widely, which can limit your lender options. For example, New York has strict requirements to get a crypto business license and has only issued its BitLicense to 29 companies so far.

    Bitcoin loan vs. portfolio loans

    Using Bitcoin to secure your loan also ties your collateral’s value to that one cryptocurrency, which can be risky. A drop in Bitcoin’s value drops your collateral’s value and the LTV of your loan, which can force you to either add more crypto to balance your loan or lose your crypto to liquidation.

    That’s why a few crypto lenders allow you to use a portfolio of cryptocurrencies to back your loan. Diversifying your collateral reduces your liquidation risk since a drop in one currency’s value won’t significantly bring down the value of your collateral overall.

    Bitcoin loan alternatives

    If you’re not ready to take on the risks of a Bitcoin loan but still need money, there are alternatives. Traditional loans may be more difficult to qualify for but also provide more security, like FDIC insurance and regulatory protections. Consider the following loan alternatives:

    • Fixed-rate home equity loans may offer lower rates than your typical personal loan because it uses your home’s equity as collateral. You can use the funds for anything you want and choose the terms of repayment from 5 years to 30 years.
    • Home equity lines of credit (HELOC) are also secured by your home’s equity but offer access to cash as needed with variable rates. You can draw funds over a set period, making interest-only payments, and once the draw period is over, your payments increase to include principal and interest.
    • Secured personal loan. A secured loan allows you to use an asset, such as a luxury item, vehicle or savings account, as collateral for your loan. The amount you can borrow and the terms of your loan may vary by loan provider.

    Bottom line

    Using Bitcoin as your collateral for a crypto loan won’t mitigate every risk you might face. But the coin’s relative stability may help keep you from losing your assets to liquidation. And using one of the most popular currencies on the market allows you to choose between most crypto lenders, so you can find the loan that best suits your needs.

    Visit our guide to crypto loans to learn more about how borrowing against digital assets works.

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