The 2025 Guide to Bitcoin Loans: Comparing Firefish, Ledn, Binance, and YouHodler
Never Sell Your Bitcoin. Ever.
Need fiat but won’t sell your sats? You're not alone. Bitcoiners across the world are unlocking liquidity through Bitcoin‑backed loans. But here’s the catch: not all platforms are created equal. Some take custody of your BTC. Some even rehypothecate it. Others? They let you stay sovereign.
This guide breaks down how Bitcoin loans work, and compares four major platforms: Firefish, Ledn, Binance, and YouHodler.
Why Borrow Against Bitcoin?
- Stay in Bitcoin: Don’t sell, just borrow.
- Get fiat fast: Pay bills, fund a project, or stack more sats.
- Avoid taxes: Loans don't trigger capital gains.
Borrowing lets you access liquidity without exiting your position. But it only makes sense if you can trust the platform.
How Bitcoin Loans Work
- Lock your BTC as collateral
- Receive fiat or stablecoins (EUR, USD, USDC, etc.)
- Repay loan + interest
- Reclaim your Bitcoin
Key terms to know:
- LTV (Loan‑to‑Value): How much you can borrow vs. your BTC's value.
- Custody: Who holds the Bitcoin? You or them?
- Liquidation: What happens if BTC price drops?
Bitcoin Loan Platform Comparison (2025)
| Platform | Custody | Model | LTV | Supported Currencies | Credit Check | Rehypothecation | Special Feature |
|---|---|---|---|---|---|---|---|
| Firefish | Non‑custodial | P2P + Instant | Up to 50% | EUR, USD, CZK, USDC | Yes (KYC) | No | Multisig escrow, PSBT recovery |
| Ledn | Custodial | Centralized | Up to 50% | USD, USDC | Yes (KYC) | Yes | BitGo storage, no altcoins |
| Binance | Custodial | Exchange‑based | Up to 65% | USD, BUSD, etc. | Yes (KYC) | Yes | High liquidity, CeFi perks |
| YouHodler | Custodial | Centralized | Up to 90% | USD, EUR, stablecoins | Yes (KYC) | Yes | High LTV, earn yield |
Deep Dive: Platform by Platform
✨ Firefish: Built for Bitcoiners
Model: Non‑custodial. Multisig escrow with PSBT support.
Pros:
- Sovereign‑friendly: keys never leave your control.
- Instant loans or P2P match.
- Transparent on‑chain escrow.
- No rehypothecation. Ever.
- Built for HODLers, not yield farmers.
Cons:
- Requires KYC for fiat (but non‑custodial escrow remains intact).
🏛️ Ledn: CeFi with a Bitcoin focus
Model: Custodial, centralized lender.
Pros:
- Long‑running, security track record.
- Transparent audits.
Cons:
- Bitcoin leaves your control.
- Can rehypothecate collateral.
🚀 Binance: Big Exchange, Bigger Risks
Model: Exchange‑integrated lending.
Pros:
- Large ecosystem, low interest rates.
- Supports altcoins and stablecoins.
Cons:
- Custodial. Not Bitcoin‑first.
- Regulatory risks in many regions.
🏦 YouHodler: High LTV, High Risk
Model: Centralized, custodial lender.
Pros:
- High LTV (up to 90%).
- Additional yield options.
Cons:
- Collateral rehypothecation.
- Not available in US/CA.
Final Thoughts: What Real Bitcoiners Choose
Firefish isn’t just another platform. It’s what Bitcoin‑backed lending should be:
- Non‑custodial
- Peer‑to‑peer
- Multisig escrow
- PSBT‑based recovery
- No token. No rehypothecation. No centralized risk.
Don’t sell the top. Borrow the dip.
Explore Firefish → firefish.io