How Bitcoin-Collateral Loans Work
A deeper look at each step of the process
Borrowing against your Bitcoin is straightforward, but understanding the details helps you avoid mistakes.
Send your BTC to a secure smart contract controlled by the lending platform. Keep a healthy collateral ratio above the minimum.
After your deposit confirms, the platform releases dollars or stablecoins—usually 50-70% of your Bitcoin's value.
Invest or spend the cash while your Bitcoin stays locked and can continue appreciating in value.
Pay back the loan whenever you like. Once settled, your original Bitcoin is unlocked and returned to you.
Crucial: Always monitor your Loan-to-Value (LTV) ratio. If your collateral's value drops, you may need to add more collateral to avoid liquidation and fees.
Choose a provider and start borrowing today.
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