Best Platforms For Bitcoin As Collateral

The value of the digital gold of our era, Bitcoin, is increasing due to high demand and the scarcity associated with it. Bitcoin is starting to be perceived as a precious store of value. Cryptocurrency owners tend to hold onto their investment for a longer period of time, partly due to Bitcoin and other digital assets’ tendency to increase owners’ profits. As such, demand for bitcoin collateral loans is becoming an endeavor businesses than to cash in on.

Demand for bitcoin lending platforms has surged in 2021 as the price of Bitcoin has reached a new all-time high. As such, lending firms that accept bitcoin or other cryptocurrencies as collateral have nearly tripled the amount of currencies they look after for their clients.

Banking those that can’t be banked.

Cryptocurrencies, despite their value and increasing acceptance, cannot be accounted for as collateral. Even though significant entities such as PayPal, Visa, or JP Morgan acknowledge the value and use cases of Bitcoin, banks fail to offer loans against Bitcoin.

The cultural stigma around cryptocurrencies has eroded as more centralized companies use blockchain and even cryptocurrencies in their daily operation. Even banks, who won’t account for cryptocurrencies as collateral, implement blockchain and, to an extent, use digital tokens.

Companies have identified a market gap and have created platforms to aid those who wish to keep their investment. Whether they are decentralized or centralized platforms, BTC-backed lending sites offer new avenues for crypto holders to lend against Bitcoin.

The cryptocurrency and financial institutions gap

Since 2017 Bitcoin has solidified its place in the growing digital economy as a safe-haven asset. In 2021, bitcoin’s value and comparison to digital gold have been reinforced by institutions and key players in the tech and business world as price volatility steadily decreased.

Bitcoin is being offered to large-scale investors by investment funds and is no longer labeled as volatile and low risk. Its status has consolidated in the current digital landscape, and new platforms bridge an ever-important gap to offer loans against Bitcoin.

Selling one’s Bitcoin is a tough decision, which most individuals tend not to agree with as it has infinite growth potential. Thus, when users require fiat currency but are not accounted for by financial institutions, they are often left stranded. BTC backed lending sites allow digital asset owners to use their Bitcoin as collateral and take out fiat currency in case of need.

Best Companies For Bitcoin Loans


Nebeus is a 2014 cryptocurrency lending platform that offers 0% interest for Bitcoin backed loans for up to 3 months. Users can access a quick loan up to $500 for which they don’t pay interest. Nebeus permits users to access their loans instantly without the need for a KYC. Users can access instant Bitcoin flexible loans with a Loan To Value as low as 50% and as high as 80%. Their APR varies from 6% for the lowest LTV all the way up to 13.7% for the highest LTV and offers options for customized loan terms of up to 36 months. Whether you need a quick loan or you can provide higher collateral in Bitcoin, Nebeus offers cash loans with highly competitive interest rates and term periods.


BlockFi is one of the largest players on the crypto collateral market, with a valuation of $3 billion. The interest on BTC loans is as low as 4.5%; however, they do not offer the possibility to have 0% interest on shorter loans. More so, users can only borrow up to 50% of LTV, whereas Nebeus users can opt to lend up to 80% of LTV, and funds are allocated within 90 minutes.


LendaBit offers P2P crypto-backed loans, including BTC. Because of the P2P nature, interest rates vary between 0.1% and 100%. However, new users have an interest rate of 0% in the first 45 days. By contrast, Nebeus has 0% interest in the first 3 months, and a similar user can create multiple contracts. There is a processing time of loans as users are required to register and create a wallet on the platform.


The Swiss financial company offers up to 90% LTV when borrowing against BTC and has an interest of 2.1% of the total contract. Loans cannot be lower than $100, and interest is set to be paid only at the end of the contract. YouHodler has fixed loan terms between 30 days and 180 days, and LTV is related to the contract term. By contrast, Nebeus allows users to set the contract’s length, and interest is decided on their LTV collateral. Thus users can opt for longer or shorter-term periods depending on their financial situation.


Nexo supports over 10 currency coins for collaterals and offers stability and security for users’ funds. Unlike Nebeus, Nexo has a low LTV between 20% and 50% of deposited assets. Additionally, interest rates range between 5.9% and 12%; however, they do not offer 0% for lower-priced loans and have a threshold of $500 minimum for any loan.

Banking yourself using cryptocurrencies such as BTC as collateral has become a reality, as more crypto owners require fiat without using their investment. Would you then opt for the terms you set before letting the platform decide how long you need to pay?

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