Best Bitcoin Loans – The 2021 Beginner’s Guide 

Fact Checked by Gary McFarlane

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Did you know that getting a Bitcoin loan is often easier than getting a traditional loan with a bank? But what are the best Bitcoin loans? How do crypto loans work? Are there free Bitcoin loans? 

In this beginner’s guide, we’ll cover everything you need to know about the latest craze to take the crypto scene by storm.  

Best Bitcoin Loan Provider 2021 – eToro

Mobile AppYes
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly

Best Bitcoin Loans 2021 List

To get started you’ll first need to buy Bitcoin (BTC) to get a Bitcoin loan. While Bitcoin loans were the first type of cryptocurrency loan investors could get their hands on, you can now get crypto loans using a range of altcoins as well. Wondering how you can make money with Bitcoin? Read our beginner’s guide on how to earn profits from hodl’ing BTC. 

So, let’s take a look at the top-rated providers for the best Bitcoin loans in 2021.

  1. eToro – Overall Best App to Manage Bitcoin Loans via eToro Money Crypto Wallet
  2. Binance – Best Bitcoin Exchange for 0% Transaction Fees on Bitcoin Loans
  3. BlockFi – Popular App for Bitcoin Loans with No Prepayment Penalties and Fees
  4. Nexo – Trusted Bitcoin Loans with Industry-Leading Rates from just 6.9%
  5. Celsius – Top-ranking Bitcoin Loans Provider with 1% APR

Best Bitcoin Loans Reviewed 

Now let’s examine each one of these providers a little closer, covering what Bitcoin loans are on offer and which one is offering the best deal right now. 

1. eToro – Overall Best App to Manage Bitcoin Loans via eToro Money Crypto Wallet

Best Bitcoin Loans with eToro Money Crypto Wallet

If you want to get a Bitcoin loan, you’ll first need to own some Bitcoin to use as collateral for your loan. One of the best places to buy and sell Bitcoin is with eToro Review Uk eToro’s Money account. This is a secure hot wallet allowing you to manage and store your Bitcoin holdings all in one convenient place with no setup fees.

eToro supports a wide range of cryptocurrencies including Bitcoin, Ether, Litecoin (LTC), Dogecoin, Bitcoin Cash,  , and many more. This is ideal because it makes it easier and simpler to get quick Bitcoin loans whenever you need them. The eToro Money Crypto Wallet allows you to transfer, store and receive cash and cryptocurrencies seamlessly. 

Best Bitcoin Loans with eToro Staking

With the eToro Money account, you’ll also receive a Visa Debit Card. This means you can spend your funds anywhere and at any time that suits you; you can even withdraw funds from ATMs. Furthermore, you’ll also get a sort code and personal bank account number to send and receive funds from other banks. Simply put, this is a great way to monitor and manage your cryptocurrency funds. 

Moreover, you can trade cryptos, crypto crosses, commodity crosses, and currency crosses all from the eToro trading platform. Additionally, eToro supports a range of other instruments and asset classes including stocks, ETFs, CFDs, indices, commodities, and fractional share trading. This top-rated social trading platform is also home to copy trading tools enabling users to copy the trading strategies of other expert investors with the click of a button. 

What does staking with eToro mean? 

Best Bitcoin Loans - What is Crypto Staking?

Staking with eToro allows clients who own and hold supported digital assets to earn rewards. In other words, staking means you earn rewards for just holding Bitcoin and other supported altcoins. eToro conducts the crypto staking process on your behalf. The rewards are more of these cryptocurrencies, meaning you’ll increase your Bitcoin holdings, in the same way that you can earn interest on fiat money. 

Is eToro safe? 

eToro is authorized and regulated by a host of financial authorities including the UK’s FCA, CySEC and ASIC. Since its initial launch in 2006, eToro has become one of the leading copy trading platforms across the board, boasting a client base above 20 million.    


  • Manage your crypto and cash funds via the eToro Money app
  • Receive a convenient Visa Debit Card for spending
  • Access to a wide range of asset classes including cryptos, ETFs, and stocks
  • Fully regulated by FCA, CySEC, and ASIC
  • Wide range of payment methods
  • User-friendly mobile app
  • Paper trading account with $100,000 of virtual funds
  • Grow your Bitcoin holdings while you HODL with eToro Staking 
  • Low minimum deposit of just $50 
  • Copy trading tools are ideal to potentially start earning a passive income


  • USD is the only supported account base currency
  • There is a small charge for staking management

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Binance – Best Bitcoin Exchange for 0% Transaction Fees on Bitcoin Loans

Best Bitcoin Loans with the top-rated crypto exchange Binance

Binance is one of the best crypto lending platforms out there. When it comes to trading volume, Binance is one of the largest players in the cryptocurrency exchange scene. The cryptocurrency trading platform supports a wide range of services including buying, selling, and exchanging digital currencies. Binance also offers crypto derivatives such as futures and options. 

Can I borrow Bitcoin on Binance? 

Borrowing Bitcoin and other cryptocurrencies is far less complicated than taking out a traditional bank loan. If truth be told, anyone can open a Bitcoin loan even if they have no financial history. On Binance, all registered users can borrow a Bitcoin loan, as well as other altcoins including Ether (ETH), Binance Coin (BNB), USDT, BUSD, and many more. The initial LTV (Loan-to-Value) Ratio is a measurement that informs investors of the total value of their loan when compared to the value of their collateral. For example, the initial LTV Ratio of BTC (Bitcoin) on eToro is 65%, while the liquidation LTV ratio is set at 83%. For the full list of supported crypto assets for borrowing and collateral click here.   

Best BTC Loans with Binance

Once you’ve chosen the crypto asset you want to borrow, namely Bitcoin, and how you’ll supply the collateral, you’ll need to decide the loan term’s length. This can be between seven and 180 days. Based on the collateral amount, Binance will automatically calculate the hourly interest rate. Interest rates on Binance loans are typically lower than conventional loan rates due to the collateral. With Binance Loans, you can borrow up to 65% of the total value of the collateral and loan funds can be used anywhere. 

Is the Binance Loans UI easy to navigate? 

The Binance Loans platform itself is very user-friendly and intuitive. There’s even a video tutorial and user manual that explains everything you need to know about Bitcoin loans and how it works on Binance. Once you land on the page, you’ll find all the key data right in front of you, as well as a useful FAQs section. 


  • Borrow for Spot/Margin/Futures trading or staking to earn high APY
  • Initial LTV ratio for Bitcoin is 65%
  • Low hourly & daily interest rate for BTC of 0.003333% / 0.0800%
  • Repay the loan at any time 
  • Binance facilitates average 24h trading volume over $17 billion 
  • Average liquidity is 685 according to


  • Not regulated by any top-tier financial authorities

67% of retail investor accounts lose money when trading CFDs with this provider.

3. BlockFi – Popular App for Bitcoin Loans with No Prepayment Penalties and Fees

Best Bitcoin Loans with the BlockFi mobile app

BlockFi is another financial services company that’s dedicated to creating products and services for cryptos. The company’s offerings include interest-earning BlockFi accounts and low trading fees. BlockFi is one of the easiest places to buy, sell and earn cryptocurrency. The Fintech company boasts a client base of more than one million and is trusted by 350 global institutions to manage more than $10 billion in assets. 

What is the BlockFi Rewards Visa Signature Credit Card?

One of its best selling points is that you can earn up to 3.5% back in Bitcoin on every transaction. According to its website, you can earn an unlimited 1.5% back in Bitcoin on every purchase you make with the BlockFi Rewards Visa Signature Credit Card. 

Key features of the Rewards Visa Signature Credit Card:

  • Zero annual fees
  • No international transaction fees
  • Earn 3.5% back in BTC during initial three month period
  • Earn 2% back in Bitcoin on every transaction above $50,000 of annual expenditure.

Make your crypto work for you

Use BlockFi for up to 4% APRBest Bitcoin Loans

With a BlockFi Interest Account (BIA), your digital assets can earn up to 7.5% APY. Interest accrues daily and is paid back every month. There are no hidden fees and no minimum balances. 


  • BlockFi is home to more than one million crypto enthusiasts
  • Is trusted by 350+ international institutions to manage $10B in assets
  • One of the top-rated places to earn interest on the best crypto loans
  • Earn up to 3.5% back in Bitcoin on every purchase with the BlockFi Rewards Visa Signature Credit Card.
  • You can earn up to 7.5% APY with a BlockFi Interest Account (BIA)
  • Client service managers offer great customer support
  • Offers top-tier security for your crypto assets


  • The minimum loan amount is $10,000

67% of retail investor accounts lose money when trading CFDs with this provider.

4. Nexo – Trusted Bitcoin Loans with Industry-Leading Rates from just 6.9%

Nexo - Best Bitcoin Loans

Nexo is one of the leading Bitcoin lending sites out there. The company offers instant Bitcoin loans, daily earnings on assets, and a top-rated exchange Nexo platform. Nexo is the only blockchain firm to offer its services in over 40 fiat currencies across 200 jurisdictions. 

Nexo gives you the best of both worlds – instant access to cash and high-yielding interest on idle crypto assets such as Bitcoin. It doesn’t end there, you also have access to OTC trading services. The company is mainly focused on amplifying the value and utility of Bitcoin and other altcoins. This translates into $30 billion processed for over two million clients worldwide. 

Is Nexo safe? 

Nexo’s instant lending platform merges streamlined user experience with top-tier security featuring 256-bit encryption and 375,000,000 USD insurance. All clients’ funds and digital assets are held in individually assigned multi-signature wallets in cold storage with Ledger Vault and the only qualified, Goldman Sachs-supported custodian – BitGo. 

Best Bitcoin Loans using the top-rated crypto lending provider Nexo

Nexo’s instant crypto credit lines allow you to borrow against your crypto holdings. Use your Bitcoin assets as collateral to get an instant credit line without selling your digital currencies. 


  • Borrow from just 6.9% APR
  • Zero origination fees
  • No monthly repayments
  • Available from $50 to $2M
  • Automatic approval, no credit checks
  • Choose from over 40 fiat currencies or borrow instantly using USDT or USDC


  • Does not support crypto derivatives

67% of retail investor accounts lose money when trading CFDs with this provider.

5. Celsius – Top-ranking Bitcoin Loans Provider with 1% APR

Best Bitcoin Loans with Celsius

Last but not least, the Celsius Network is a P2P (peer-to-peer) lending company that facilitates the borrowing and lending of cryptocurrencies such as Celsius Bitcoin (BTC) XRP, and Ethereum (ETH). With Celsius, you can choose from over 40+ digital assets to use as collateral at 1% APR. 

Celsius Network is a democratized interest income and lending platform that’s accessible through a cutting-edge mobile app. Crypto enthusiasts can earn rewards by transferring their digital assets to their Celsius Wallet and can borrow USD or other stablecoins against their cryptocurrency collateral at interest rates as low as 1% APR. 

Celsius top-rated Bitcoin Loans

Interest payments are made monthly, with the principal amount returned at the end of the loan term. Interest rates vary based on your preferred choice of Loan to Value Ratio. The minimum loan term is six months. 

How long does it take to get a loan using Celsius? 

The process to request a loan takes as little as 30 seconds to complete. Stablecoin loans are released instantly after the loan has been approved and is paid directly into your Celsius account. You can then withdraw them whenever you want or store them in your account to earn rewards. 

Get one of the best Bitcoin loans through Celsius with these simple steps: 

  1. Pick cryptocurrencies or USD and enter the amount you want to borrow
  2. Select your collateral and interest rate
  3. Choose your total loan term
  4. Confirm details and get approved – then spend your money or keep HODL’ing to earn rewards


  • Borrow at 1% APR using your Bitcoin holdings
  • No origination fees
  • Competitive industry rates
  • Convenient refinance options
  • Choose between 1%, 6.95%, and 8.95% interest rates
  • You can pay off your loan with CEL tokens, giving you access to higher rates on earning and lower interest rates on Bitcoin loans
  • No withdrawal fees
  • No holding fees
  • Available as a web-based platform, and a mobile app that’s compatible with Android and Apple iOS devices. 


  • CEL tokens are susceptible to high volatility, limited liquidity and the potential risk of sudden drop in market value. 

67% of retail investor accounts lose money when trading CFDs with this provider.

Best Bitcoin Loans Comparison

Let’s compare the best Bitcoin loans to help you find the right one that suits your time horizons and risk tolerance. 

BlockFi Celsius Nexo Binance
Use BTC as Collateral?
Loan amounts $10,000 – $1,000,000 $1 – $2,000,000 $500 – $1,000,000 $100 – $1,000,000
Collateral LTV 50% 50% 75% 65%
APR Interest 6.5% 8.95% 5.9% 2.5%
Loan Period 12 months 6 months 12 months 7 – 180 days
Fees Loan origination fee 2% Zero Margin call 15% 0.1%

What is a Bitcoin Loan?

Most crypto traders and avid crypto market enthusiasts recommend HODL’ing their assets. This means holding them in a crypto wallet in hot or cold storage until the market value of the underlying crypto appreciates. But just as leaving your fiat currency balance in a bank account with zero interest rates is unnerving, the same applies to Bitcoin holdings. Is there a way to earn rewards for simply holding Bitcoin? 

HODL - Best Bitcoin Loans

This is where the best Bitcoin loans come in. Not only does it mean savers can earn interest on their Bitcoin holdings, but it allows borrowers to maximize the full value of their cryptocurrencies by using it as collateral for the loan. 

When it comes to online trading, one of the main obstacles can be cash flow. A common scenario that investors find themselves in is trying to raid the capital they have invested in assets for short-term costs and a lack of liquidity. 

How do Bitcoin Loans work? 

Let’s start with an example. Let’s say that you have 4 BTC. You aren’t willing to sell any of it as you speculate a future market uptrend. There’s also the possibility that if you do end up selling your Bitcoin holdings, there’s a risk that you’ll end up with less BTC when you repurchase later on. 

Bitcoin lending providers can be a viable solution. Usually, you’ll be able to use your Bitcoin assets as collateral for the loan. As a result of the sheer market volatility that comes with decentralized cryptocurrencies, you’ll have to lock up more Bitcoin as collateral than the total value of the funds you’ll be receiving. 

Once you’ve repaid the loan along with the interest, your BTC will be returned in full. Not to mention, you could make huge returns if Bitcoin ended up appreciating as you expected. Your Bitcoin would be at risk if you don’t keep up with the terms of the Bitcoin loan, or if the value of the BTC collateral dropped below the overall value of the loan taken. 

What started the Bitcoin Loans Craze? 

When did Bitcoin lending start to gain traction? It all started when the global economy slammed on the brakes in 2020 due to the Covid-19 pandemic. This drove interest rates down. Many investors were looking for alternative methods to let their crypto assets work for them. Bitcoin loans quickly became a fast and affordable way to take out fiat loans instantly. Then, the days when Bitcoin and Ether gathered dust on an exchange or cold wallet were gone. 

Covid-19 pandemic gave birth to the latest Bitcoin and cryptocurrency lending appeal

Because cryptocurrency is such a volatile asset, these loans are usually always overcollateralized. This protects the lender if the price of cryptocurrency falls. This, however, may have a detrimental impact on the borrower, especially if the platform they’re using demands them to keep their loan-to-value (LTV) ratio constant.

What are the benefits of Bitcoin loans?  

One of the most appealing aspects of a crypto loan is that, unlike regular banking, your credit score will not be taken into account. This means that lending is more accessible to traders with no credit history, and the self-employed who struggle to get credit due to their variable incomes not meeting a bank’s tight lending criteria. Repayments can also come with greater flexibility. 

And, unlike traditional financial loans, which might take several days to clear, BTC loans are almost instant. You’ll also be able to liquidate your assets without generating a taxable event, and you’ll be able to tailor the loan to your specific needs. Users can also swap between other crypto assets, allowing them to deposit Ether and borrow Tether on the same site.

How to get a Bitcoin loan?

If you like the sound of cryptocurrency lending and a Bitcoin loan but aren’t sure what the first step is, you have two key choices – centralized and decentralized lending providers. 

Bitcoin Loan on Centralized Exchanges

Centralized loan platforms including BlockFi, Nexo, and Binance comply with standardized practices. You’ll need to open an account by signing up and undergoing the KYC process. These Know Your Customer measures are there to help combat fraud and money laundering. 

CeFi BTC loan providers

These centralized exchanges and providers have measures in place to protect your collateral. Some safeguard Bitcoin assets with insurance cover, while others hold most of their clients’ funds in cold storage. This means they’re not directly connected to the internet as is the case with hot wallets. 

Centralized Bitcoin lending providers record all transactions using blockchain technology. They also provide effective ways to earn interest on Bitcoin, alongside other altcoins and stablecoins such as USDC and USDT. to further this point, the top USD savings account bank rates seldom exceed the 1% APY mark, while the best Bitcoin lenders offer around 8% on crypto interest rates. It’s worth the time researching and hunting for the best deals to earn the most rewards for your Bitcoin holdings. 

Although receiving a loan through a CeFi platform requires extra paperwork, the fact that it is regulated, and that a customer support agent is only a click or a phone call away — may make these Bitcoin loans providers more enticing to traditional investors.

Bitcoin Loans Without Collateral – What are they? 

Another option for Bitcoin lending is to use a decentralized provider or exchange, otherwise referred to as DeFi by crypto enthusiasts. 

Unsecured Bitcoin loans, also dubbed Bitcoin loans without collateral, are cutting-edge new financial services that offer short-term liquidity and can be repaid in fiat or cryptocurrency. The aim is to borrow money from a lender directly using a cryptocurrency as collateral rather than traditional assets like real estate or gold. There are a lot of platforms that offer the best Bitcoin loans with no collateral. Flash loans, for example, are a popular type of Bitcoin loan that does not require collateral, but a good understanding of cryptocurrencies is required. 

Before you make any decisions about Bitcoin loans without collateral, make sure you research the provider’s legitimacy. You could even refer to popular social discussion forums like Trustpilot and Reddit for accurate information and social proof. 

Decentralized Finance Lending

DeFi lending providers are not governed by centralized authorities, meaning transactions are handled by code as opposed to people. Some services like Aave and Compound, smart contracts use algorithms and coding to make loan payouts an automated process. 

Binance - crypto market trends

Unlike centralized crypto platforms, there are no middlemen or financial intermediaries, meaning you can avoid the KYC process altogether. On the flip side, DeFi interest rates for Bitcoin lending often fall short when compared to what CeFi competitors offer. 

Receiving a Bitcoin loan via a DeFi platform is typically a swift process as you don’t have to jump through KYC hoops. With the help of smart contracts, all you need to do is apply for the Bitcoin loan and then send the crypto you want to use as collateral to a wallet address associated with the chosen provider. 

Best Bitcoin Loans – Expert Verdict

Mobile AppYes
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly

On most centralized and decentralized Bitcoin lending platforms, you’ll have the ability to open a savings account using your Bitcoin as collateral, as well as exchange tokens or take out loans. 

With both categories of lending platforms still in the early stages of development, it’s certainly a promising space to keep an eye on. There’s tons of space for improvement and growth, and the idea of taking out a loan without the hassle of traditional formalities could be the start of a new era for both crypto enthusiasts and the lending ecosystem. 


How are Bitcoin loans collected?

How do Bitcoin loans work?

What is a Bitcoin loan?

How to get an instant Bitcoin loan?

Are Bitcoin loans safe?

How to get a crypto loan?

About Dassos Troullides PRO INVESTOR

Dassos Troullides is an experienced finance writer who specializes in CFD, stock, forex, and crypto trading. He uses his experience and time spent in the forex industry to simplify complex financial topics for easy, informative reading. Dassos also writes for,,, and