The most important things:

  1. There are various ways to take out loans secured with cryptocurrencies.
  2. For this purpose, you deposit Bitcoin, for example, and get up to 75% of the equivalent value as a credit line.
  3. The easiest way to take out a crypto loan is with the provider
  4. The money is in the account within minutes. There are no Schufa inquiries or other verification.
  5. Besides that, however, there are also a number of DeFi products that also allow crypto loans. is a provider of instant loans with cryptocurrencies as collateral. The loans are credited to the account within a very short period of time.

  • User-friendly process
  • Very fast payout
  • good interest rates
  • High security deposit (max 50% available as credit line).

For other btc loan providers visit

How do crypto loans work?

How do crypto loans work?Crypto-credits (or crypto-loans) allow assets available as cryptocurrencies to be deposited as collateral for a normal credit line. The general procedure is always the same:

Deposit cryptocurrency as collateral (collateral).
The available credit line into a part of the equivalent of the collateral
Pay out desired credit within the credit line in euros (to the account) or a stable coin (to the wallet).

As a rule, the collateral is at least 150% of the available credit line.

While the credit is open, interest is charged as with normal credit. Depending on the provider, there are fixed or flexible terms. The utilized credit can be repaid at any time. In this case, the borrower receives all cryptocurrencies back.

If the credit used is in danger of increasing in value higher than the equivalent value of the deposited cryptocurrencies (if the price falls), they will be forcibly liquidated. Thus, they have to be sold to pay off the loan. Any surplus from the sale goes back to the borrower.

Why are crypto loans needed?

At first glance, such cryptocurrency-backed loans (crypto backed loans) may seem strange. Why should I deposit bitcoins worth 15,000 euros as collateral to get 10,000 euros? The answer is: because I don’t want to sell! With crypto loans, you have the opportunity to get cash without selling cryptocurrencies.

The reasons for this can be many:

I have a financial bottleneck (car broken), but I don’t want to sell my crypto reserves
I want to buy more cryptocurrencies with the loan.
I want to “cash out” price gains, but not create a tax incident because not a year has passed since the purchase.

Currently, the second case is probably the most common of these reasons, but loans and credits backed by collateral are commonplace in the current financial system. For example, in construction financing, the real estate is deposited as collateral for the loan.

What are the advantages of crypto loans?

Loans with cryptocurrencies as collateral have some advantages over normal loans from the house bank.

They are available as instant loans within minutes

Since crypto loans do not require a Schufa report or any other proof of creditworthiness (for example, payslip), the processing is very fast and does not take much longer than the duration of the crypto transaction and, depending on the provider, verification via webcam. By means of a lightning transfer, the money is immediately in the account.

Without Schufa information

It does not matter who wants to take the loan, but only that the required security is available.

Flexible credit conditions

As a rule, it does not matter whether the loan is needed for 3 days or or 3 years. The conditions are the same. The loan interest is calculated daily and the loan can be repaid at any time. Or not. As long as the credit line does not exceed the security deposit and needs to be liquidated, you have complete flexibility. There is no early repayment penalty and you can repay only parts of the loan at any time. No paperwork.

Available to everyone worldwide

Centralized providers such as, for example, do have territories where they are not available. But decentralized platforms like Maker DAO can be used by anyone, anywhere.

Different types of crypto loans

The main difference in borrowing is who runs the platform. With centralized providers (for example,, BlockFi), the loans are issued by the provider itself. The advantage is the very user-friendly process and the fact that the loan can be deposited directly into the account in euros. In addition, there are extra products such as a credit card or an app.

The largest providers are:

  1. Nexo
  2. BlockFi
  3. LendaBit

Investors go into debt to buy bitcoin

To buy Bitcoins, investors are now even taking out loans. Due to the crash, this is becoming a problem. Governments now want to intervene. At first, it’s just fun. Gabi and Werner Brockhoff buy the first Bitcoins simply to see what happens. But then the price of the cryptocurrency rises, and rises rapidly. Instead of selling, realizing their profit, the couple from Berlin gets bolder. In November, they take out a loan for 20,000 euros to buy more Bitcoins. In addition, they acquire Trons, units of a new cryptocurrency that has only been on the market at all since September. The Brockhoffs, who do not want to read their real name in the newspaper, are convinced: Bitcoin and the technology behind it, blockchain, have a future, and they want to profit from it. The fact that others can’t understand why they are going into debt for it doesn’t bother them. Werner Brockhoff says it’s like Galileo Galilei. At first, people didn’t want to believe him when he claimed that the earth revolved around the sun.

It is investors like the Brockhoffs who have driven up the bitcoin price over the past year. While one unit of the cryptocurrency cost $1,000 at the beginning of 2017, it was nearly $20,000 before Christmas. This has made a few millionaires and awakened greed in many more people. But the past few weeks have shown that as quickly as you can earn money with Bitcoins, you can also lose it again. A few days ago, the price of a Bitcoin fell to $6,000, and most recently it was $8,000 again.

18 percent of investors buy Bitcoin on credit

In view of these price fluctuations, it is correspondingly alarming that investors are increasingly taking on debt to buy cryptocurrencies. Because like the Brockhoffs, 18 percent of Bitcoin buyers are now already taking out a loan. This shows a survey of 3000 investors in the U.S. and Europe, which the website Coindesk has just published.

Wolf Brandes of the consumer center Hessen considers this a critical development: “An investment in Bitcoins is highly risky, in the worst case total loss threatens.” Whoever has taken out a loan there, quickly remains sitting on the debt. Brandes already feels reminded of the Neuer Markt. Back then, investors also dreamed of big profits, bought shares on credit – and ended up losing a lot of money. Felix Hufeld, head of the financial supervisory authority Bafin, also fears that the Bitcoin boom will lead to “excesses that produce bitter losers.

Banks restrict transactions

Some banks are therefore intervening. JP Morgan, Citigroup, Bank of America and Lloyds have recently stopped letting their customers buy Bitcoins with their credit cards. In doing so, they want to protect consumers – but also themselves. The banks are obviously too afraid that they will be left holding the debts if the prices for cryptocurrencies crash. Especially since credit cards in the U.S. and the U.K. work somewhat differently than in Germany: While the outstanding amount is automatically debited from the checking account every month in this country, customers in Anglo-Saxon countries can decide flexibly when and how much they want to repay. So unlike in Germany, in the U.S. and the U.K. you get a real loan via the card, and the banks have no interest in customers using that to gamble. And buying Bitcoins is gambling, as central bankers like Mario Draghi see it. Digital currencies should be classified “as very risky assets,” he urged this week.

Especially since no one knows how cryptocurrency will fare. The few forecasts that do exist diverge widely. While Denmark’s Saxo Bank still sees the bitcoin price rising to $100,000 this year, Goldman Sachs warns some cryptocurrencies could fall to zero. Oliver Flask√§mper, who has been involved with Bitcoins for years and runs Germany’s only marketplace for cryptocurrencies, therefore does not even dare to make a forecast. “I could also predict the lottery numbers there,” he says.

It will also depend on politics how Bitcoin and Co. develop. Governments and supervisors around the world are currently grappling with the question of how to control cryptocurrencies. Agustin Carstens, director general of the Bank for International Settlements (BIS), believes this is imperative. “What may have been originally intended as an alternative payment system without government involvement has now become a mixture of financial bubble, Ponzi scheme and environmental disaster,” he said this week. By the latter, he means the enormous energy that must be expended to create Bitcoins on high-powered computers. The electricity used to produce cryptocurrencies already equals the consumption of the state of Singapore, Carstens calculates.

In Germany, bitcoin regulation even appears in the coalition agreement of the CDU/CSU and SPD: They want to advocate for an “appropriate legal framework for trading in cryptocurrencies and tokens at the European and international level,” it says. At the request of Germany and France, a regulatory framework for cryptocurrencies could even become a topic at the meeting of G-20 finance ministers in March. The two countries suggest that international expert bodies such as the FSB, which is responsible for financial stability issues, should first be commissioned with a report. In addition, they say, consideration should be given to bringing in the International Monetary Fund (IMF). However, this also shows: How a regulation of cryptocurrencies should look like is still open. Especially since this runs counter to the ideas of their inventors, who want free currencies that are not controlled by the state.

China and South Korea have already gone particularly far in completely banning Bitcoin trading. Exchanges where Bitcoin and Co. are traded must close. China has additionally banned the creation of new Bitcoins. Digital currencies are generated on high-performance computers, – without access to the power grid, which China now denies, this does not work.

Worldwide, however, a complete ban on cryptocurrencies is hardly enforceable, says exchange operator Flaskämper. He compares this to gold: Throughout history, people have also wanted to ban the precious metal again and again. But they were not able to keep it up. In his view, a ban would not mean the end of cryptocurrencies Рtrading with them would only migrate to the so-called darknet. Governments could also have no interest in that.




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