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Best Bitcoin-Backed Loans (2026)
Last updated: March 2026
Bitcoin holders who need liquidity but do not want to sell their BTC can use crypto-backed loans to borrow against their holdings. This preserves your long-term Bitcoin position while giving you access to cash, stablecoins, or other assets for immediate needs. We compared the top platforms for Bitcoin-backed lending based on rates, LTV ratios, and security.
Nexo offers instant Bitcoin-backed loans with rates starting at 0% APR for Platinum-tier users. Borrow up to 90% LTV against your BTC with no monthly repayments required and flexible repayment on your schedule.
Pros
- +Rates as low as 0% APR
- +Up to 90% LTV on Bitcoin
- +No monthly payment requirements
Cons
- -Best rates require NEXO token holdings
- -CeFi counterparty risk
- -Not available in all US states
Aave allows decentralized borrowing against wrapped Bitcoin (WBTC) across multiple chains. No KYC required, variable rates based on market demand, and the ability to borrow any supported asset against your BTC collateral.
Pros
- +No KYC required
- +Borrow any supported asset
- +Multi-chain availability
Cons
- -Requires wrapping BTC to WBTC
- -Variable rates can spike
- -Technical knowledge needed
MakerDAO accepts WBTC as collateral for borrowing DAI stablecoins. The stability fee is governance-controlled and often competitive with market rates. MakerDAO's battle-tested infrastructure provides reliable Bitcoin-backed borrowing.
Pros
- +Borrow DAI at competitive rates
- +Battle-tested since 2017
- +Governance-controlled stability
Cons
- -Can only borrow DAI
- -Higher collateralization ratios
- -Must wrap BTC to WBTC
Frequently Asked Questions
Can I get a loan against my Bitcoin without selling it?
Yes. Bitcoin-backed loans let you deposit BTC as collateral and receive a loan in fiat, stablecoins, or other crypto. You maintain ownership of your Bitcoin and get it back when you repay the loan. This avoids triggering a taxable event from selling.
What is the maximum I can borrow against Bitcoin?
Maximum LTV varies by platform: Nexo offers up to 90% LTV, while DeFi protocols typically allow 70-80% LTV for WBTC. Higher LTV means more borrowing power but greater liquidation risk if Bitcoin's price drops.
What happens if Bitcoin price drops while I have a loan?
If Bitcoin's price drops enough that your collateral value falls below the liquidation threshold, your position may be liquidated. The platform sells your BTC to repay the loan. To avoid this, maintain a healthy LTV ratio, set up price alerts, and keep additional collateral ready.