To borrow against Bitcoin, you pledge it to a lender as collateral, receive cash, and repay the loan later to get your Bitcoin back. You never sell, so you keep your stack and its upside and, under current US rules, generally avoid a taxable sale. This guide walks through exactly how to do it: the steps, how much you can borrow, what it costs, the one risk that matters most, and how to choose a lender. We are a comparison publisher, not a lender, so nothing here is a pick of one provider over another.
How to borrow against Bitcoin, step by step
Apply
Lender sets your amount, rate, term, and max LTV.
Pledge BTC
Your bitcoin moves into custody as collateral.
Receive cash
Funds paid out in dollars or a stablecoin.
Pay interest
Monthly, or accrued to the end of the term.
Reclaim BTC
Repay in full and your bitcoin is released.
- Decide how much you need, and at what LTV. The loan-to-value ratio is your loan divided by your collateral value. A lower LTV leaves more room before trouble. Model your numbers first with the loan calculator.
- Choose a lender by custody and effective APR, not the headline rate. Where your Bitcoin sits, and whether it can be re-lent, matters more than a fractional rate difference. Use the comparison tool and the reviews.
- Apply and pledge your Bitcoin. Depending on the lender, your collateral goes into the lender's custody, a qualified custodian, a collaborative-custody setup where you hold a key, or a smart contract. Most lenders run no credit check; the Bitcoin underwrites the loan.
- Receive your cash. Usually dollars to your bank or a stablecoin, in anywhere from minutes (DeFi) to a few business days (institutional lenders).
- Repay and reclaim your Bitcoin. Pay interest over the term, repay the principal, and your collateral is released back to you.
How much can you borrow against Bitcoin?
Most Bitcoin lenders cap origination LTV between 40% and 60% of your collateral's value. At a 50% cap, $100,000 of Bitcoin gets you up to $50,000 in cash. A few lenders allow higher starting LTVs at the cost of a tighter margin-call buffer; see highest-LTV bitcoin loans.
Borrowing well below the cap is the cushion that protects you. The lower your starting LTV, the further Bitcoin has to fall before a margin call. Many cautious borrowers stay near or below 25% to 30%.
What it costs to borrow against Bitcoin
The number that lets you compare lenders fairly is the effective APR including the origination fee, not the advertised rate. The table below renders live from the same database that powers our comparison tool.
Lender facts on this page render live from our comparison database, last verified June 16, 2026. Figures refresh weekly; for the current set and your own loan size, see the comparison tool.
| Lender | Effective APR (incl. origination) | Max LTV |
|---|---|---|
| APX Lending | 9.99% to 11.49% | 60.00% |
| Arch (Deferred) | 9.49% to 10.99% | 60.00% |
| Arch (Standard) | 8.99% to 10.49% | 60.00% |
| CoinRabbit | 11.95% to 16.80% | 90.00% |
| Figure | 10.00% to 12.45% | 75.00% |
| Ledn | 9.99% to 11.49% | 50.00% |
| Nexo | 17.90% to 18.90% | 50.00% |
| SALT | 7.49% to 10.50% | 70.00% |
| Strike | 7.49% to 10.47% | 50.00% |
| Unchained | 14.18% | 50.00% |
These are starting points, not a ranking. Weigh custody, term, and how much cushion you keep, not just the cheapest headline number.
The risk that matters most: a falling Bitcoin price
Your loan amount is fixed, so when Bitcoin falls your collateral is worth less and your LTV rises. Cross the lender's threshold and you get a margin call to add collateral or pay down the loan; ignore it and the lender liquidates part of your Bitcoin.
A forced liquidation is the outcome to design around: it sells your Bitcoin at the worst time and is itself a taxable event. The defense is a low starting LTV. Model the exact trigger price with the loan calculator and the liquidation price calculator.
How to choose a lender
Compare on the same factors, in roughly this order:
- Custody and rehypothecation. Where your Bitcoin sits and whether it can be re-lent. This is what separated the lenders that survived 2022 from the ones that did not.
- Effective APR, including the origination fee. The true annual cost.
- Maximum LTV and margin-call threshold. How much you can borrow and how much cushion you keep.
- Term, payments, and prepayment terms. Monthly payments versus accrued interest, and whether you can repay early without penalty.
- Funding speed and state availability.
For the full treatment of how these loans work, read our complete guide to bitcoin loans. To borrow for a specific purpose, see buying a home or a car without selling.
This is not financial advice
borrow/on/bitcoin is a comparison publisher, not a lender, broker, or financial or tax advisor. Bitcoin loans carry real risk, including the forced sale of your collateral, and tax treatment depends on your situation and on rules that can change. Compare current terms on our tool and confirm anything here with a qualified professional before acting on it.