Step-by-Step Guide: How to Receive a Crypto-backed Loan on Biterest

22 February 2020
Read: 6 min

Read our 5-step-guide on how to open a credit line on Biterest and receive your first loan

Why do you need a loan against your bitcoin?

Biterest is a multifunctional service that combines a wallet and a bitcoin-backed instant credit line. This allows you to profitably cash out bitcoin regardless of its current exchange rate as you no longer need to sell it.

To make a long story short, you use BTC as collateral -> receive a USD loan -> Bitcoin is growing in price -> you repay the USD loan -> you receive your BTC collateral back which has increased in price -> gain profit!


To calculate the minimum amount of collateral which is required to obtain the loan amount, use the loan calculator.

You can enter the loan amount in the “I want to borrow” field in order to calculate how much cryptocurrency you need for the collateral or type in the amount of collateral in order to find out the possible loan amount.

The collateral value has to be 20% greater than the loan amount. Bitcoin is a highly volatile asset that’s why the collateral value can both rise and drop significantly over a relatively short period of time. At any period of time, the collateral value on your Biterest account balance has to be at least 10% greater than your used loan limit.

STEP#1 Loan amount

Your Biterest credit line will be ready to use right after replenishing the account balance. You can then proceed to make a loan request for any amount within your available loan limit.

The loan is fixed in USD. The minimum request is 100 USD, and the maximum corresponds to your current loan limit. If you want to increase your limit, you can always add bitcoin to your account balance.

STEP #2 Currency to receive

Choose the currency in which the money will be issued to you. By receiving money in cryptocurrency, you can freely convert it into any other fiat currency as well as make transfers without spending your own crypto assets. The currency to receive does not affect the final repayment amount – your used loan limit is fixed in USD.

STEP #3 Collateral amount

Collateral amount corresponds to a loan amount + 20%. Therefore, to obtain a loan, the current value of your account balance must be not less than the specified collateral amount.

Since Bitcoin is a highly volatile asset, we recommend you to deposit more bitcoin on the balance than it is required. The excess collateral on your balance will be considered as a “buffer” and reduce the risk of a Margin Call occurrence if the bitcoin price starts to rapidly decline.

Please note that you can freely withdraw the excess collateral at any time. No withdrawal fee is charged.

STEP #4 Your payment details

Choose a convenient method to receive funds.

Regardless the currency to receive, your loan is always fixed in USD. For all users regardless their location, a loan amount can be sent via cryptocurrency. If you chose bitcoin, ethereum or tether, check that you entered the correct address.

STEP #5 Make a loan request

After filling out the form, click the “Apply for a loan” button and confirm the selected loan conditions. Upon sending funds to your payment details, you will be notified by email.

The loan duration is unlimited. You can use the loaned money as long as you need. Regardless of the loan amount, sending method or currency to receive, the interest rate is 12% per annum which corresponds to 0,033% per day.

Watch this video tutorial on how to apply for an instant loan on Biterest

Apply for a bitcoin-backed loan on Biterest

Learn more

Aren't sure how to start? Try to receive your first loan in the Biterest demo version

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LTV: How does Bitcoin price affect Loan-to-Value ratio?
1 April 2020

As soon as the loan is issued, you will see the LTV – loan to value ratio of your account. This indicator helps to control the ratio between your used loan limit and the current value of the account balance

Margin Call is under control: How to avoid a forced loan repayment?
24 April 2020

Margin Call is a critical situation in which the borrower’s debt on a loan is forcibly repaid by the user’s collateral because the cost of the collateral at the current bitcoin price does not cover the amount of the used loan limit